BEFORE JC. Government protects pension funds at Catalyst Paper operations

The first tariff increases in the forest industry and the deterioration of Canada-US trade relations prompted the BC government to protect the pensions of retirees and workers in three mills. Catalyst Paper. The government reacted to the sale of its US forest factories last month and the prospect of higher rates for lumber later. summer.

"It was a preventative step," he said. "We continue to work with Catalyst to try to find solutions to their operating problems as well as to the commercial issues raised by the United States. Today, we want to make sure that pensioners are aware and that workers know that the government understands they have an obligation to their present and past workers. "

The company completed the sale of its US operations last month in a deal worth $ 175 million.

Catalyst and l & # 39; former BC The Liberal government agreed in 2012 to give the company 16 years to repay the funding deficits of the pension plans.The employee unions also agreed to make concessions to the Port Alberni mills , Powell River and Crofton.

Horgan said the government changed the pension relief regulation so that Catalyst should immediately cover the shortage of pension on a sale or closure, In a statement released Friday, the Catalyst CEO Ned Dwyer said he understands that the company's operations are essential for its employees, retirees, suppliers and communities.

Paper prices have allowed us to upport the heavy US bonds we face, but the industry needs real solutions to the current challenges in British Columbia. in terms of fiber, electricity costs and other competitiveness issues. "

A BC According to the Government, trade relations between the United States and Canada have deteriorated and provincial authorities now provide 28% tariffs on Catalyst's paper products by August

generate more than $ 2 billion in annual economic activity and are key contributors to the local economies of Vancouver Island, Powell River and Metro Vancouver