FOR IMMEDIATE RELEASE

Press Release – July 24, 2008

Pattern Settlement Reached

VANCOUVER  – The members of CEP Locals 603, 1119 and 1133 have ratified a new four-year Labour agreement expiring in 2012 which provides for improvements in wages, pension benefits, severance, and job security benefits.

“This agreement is the one that is the basis of a pattern settlement that we will now bring forward to the rest of the industry for implementation,” states Don Boucher, Administrative Vice President.  “There will be no exceptions.  This is the standard agreement that will provide a level playing field for our members and their employers across the industry.”

The three CEP Local Unions represent approximately 500 workers at two mills in Prince George operated by Canfor Pulp Limited Partnership and 400 workers at the Howe Sound Pulp and Paper Limited Partnership operation in Gibsons.

The new agreement provides for a 2% wage increase in the first year, 2.5% in the second and third year and 3% in the fourth year; a “pop-up” clause for pension bridging which allows workers to retire after age 55 and access the bridge benefit at age 60; significant severance benefit increases for workers after one year of service; an increase in the maximum severance benefits payable and improvements for workers in the areas of Short Term and Long Term Disability benefits.

Also included in the new agreement are provisions for wage adjustments for tradespersons and steam engineers in recognition of the skill shortage as well as additional training periods in the times where workers may face displacement from their workplace due to operations downtime.

The Communications, Energy and Paperworkers Union of Canada represents 150,000 members from coast to coast including 40,000 members in the pulp and paper industry.

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