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Province to help employees in Pine Falls mill buyout

Union hopes for plant to reopen by September

By: Larry Kusch

Posted: 04/30/2010 1:00 AM | Comments: 0 (including replies)

The mill has been idle since September. (KEN GIGLIOTTI / WINNIPEG FREE PRESS ARCHIVES)

An employee-led buyout of the Pine Falls paper mill has passed a couple of key hurdles, giving a union official hope that the facility could reopen by September.

On Thursday, Cam Sokoloski, president of United Steelworkers Local 3-1375, said the results of a mill-purchase feasibility study, paid for by the province, was "favourable." And the buyout group had also lined up a Winnipeg group to provide some of its financing.

"We're moving forward," Sokoloski said.

The province said Thursday it was prepared to come to the table to supply up to 30 per cent of the financing for a buyout if there is a viable plan in place.

Labour Minister Jennifer Howard said it's her understanding that it would take $100 million to purchase the mill, get it up and running and "see it through until it could be profitable."

"We would not be available to give total funding for that. There would have to be other partners," Howard said, adding that the province has not received an official request from the buyout group.

The Pine Falls paper mill has been idle since Sept. 1, 2009 when Montreal-based Tembec locked out union employees during contract negotiations. Late last year, it announced it would close the facility and put it up for sale. Nearly 300 workers lost their jobs. Tembec said at the time that if a buyer could not be found soon, the plant would be mothballed.

On Thursday, in a show of support for the Pine Falls community, members of the legislative assembly unanimously supported a motion by Conservative MLA Gerald Hawranik (Lac du Bonnet) urging the province to lend a viable buyout group money to purchase the plant.

Sokoloski said the employee-led group seeking to purchase the facility includes both former union workers and management staff. Sagkeeng First Nation has also been involved in the discussions as a partner, he said.

Tembec officials could not be reached for comment on Thursday. The company is keen to unload the plant, but the buyout group wants more information about what liabilities -- including environmental -- they would be inheriting.

The purchase group also has yet to receive a report on the status of the company pension plan, Sokoloski said. "We know it's underfunded. We don't know (by) how much yet," he said.

The would-be buyers were also awaiting word Thursday from Tembec about a request to once again extend the negotiation process. The company's board was to discuss the request at a Wednesday meeting. Tembec had set strict deadlines for disposing of the facility.

larry.kusch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition April 30, 2010 A9

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