CEP Media Release

Communications, Energy and Paperworkers Union of Canada
540 - 1199 West Pender St., Vancouver, B.C.  V6E 2R1 tel. 604 682-6501 fax 604 685-5078

CEP accuses Catalyst of Smoke and Mirrors
CEP fights concessions
For immediate release
November 30, 2006

VANCOUVER – The Communications, Energy and Paperworkers Union is wondering what one of its largest employers in BC is really up to.

Recently Catalyst Paper announced a potential investment of $25 million to upgrade the CTMP plant in Port Alberni. This would make the mill the lowest cost producer of its paper products in North America.

“Catalyst will receive a full return on their investment of $25 million within 2 ½ years without any concessions from us,” states CEP Local 592 President Jim VanDusen. “They will earn $170 per tonne more than they currently do at our mill. This represents about $21 million per year above their present earnings and they still want concessions from my members.”

Catalyst has announced job elimination for 125 workers whether the CTMP plant investment goes forward or not.
“Concessions from the workers will not save those jobs for us and the community,” states CEP Tyee Local 686 President Dale Marcellus. “So if they are going to be making such a profitable investment why are they still asking for concessions, with respect to municipal taxpayers and the employees at the mill?”

Catalyst has been demanding tax concessions from the Port Alberni municipal government. The City has offered them a deal worth about $1.5 million over 5 years. Catalyst says this is not enough.

“We are sure wondering what game Catalyst is playing,” states CEP Western Region Vice President, Don MacNeil. “They talk about investing money to improve operations and increase profits but for some reason they are still demanding concessions from our members in Port Alberni rather than just simply going ahead with this lucrative investment. If they think for one minute that they are going to get concessions from our members just to improve profits for shareholders, they have another thing coming.”

The CEP represents 150,000 members coast to coast including 40,000 forest industry workers throughout Canada.

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 For more information contact:
Don MacNeil, Vice President, Western Region: 778 988-5289
Jim VanDusen, President, Local 592: 250 724-2772
Dale Marcellus, President, Tyee Local 686: 250 723-2946