AV Group Terrace Bay Reaches 4-Year Labor Agreement with Union

The collective agreement covers approximately three hundred hourly employees at the Terrace Bay operation, which produces over 320,000 tonnes of bleached softwood pulp annually.

Oct. 17, 2022 - AV Group Terrace Bay Inc. jointly announces with the United Steel Workers (USW 665) and International Brotherhood of Electrical Workers (IBEW 1861) ratification of a four-year collective agreement.

The collective agreement covers approximately three hundred hourly employees at the Terrace Bay operation (Ontario, Canada), which produces over 320,000 tonnes of bleached softwood pulp annually.

"AV Group is pleased with the cooperative effort in which this agreement was struck," stated Terrace Bay President Dennis Visintin. "This agreement provides certainty for our operations and security for employees as we enter a favorable period for the kraft market. It aligns well with creating an employer of choice environment for current and prospective employees. It's the right agreement at the right time."

USW spokesperson, Herb Daniher, commented on the outcome, "The membership is pleased to have ratified this agreement. Our negotiations were effective and brings total compensation to a level competitive with regional mills."

Highlights of the agreement include wage increases in the range of 20-24%, and pension and benefit enhancements. Improvements to job placement procedures are also expected to optimize return on employee training investments for the company.

The facility, which has been without an agreement since May 1, 2022, will see the new agreement come into effect on October 14, 2022, with wage increases retroactive to May 1, 2022.

SOURCE AV Group Canada