The sale of Domtar to Richmond-based Paper Excellence comes as the Kamloops pulp mill’s unionized employees are negotiating a new contract.
Unifor Local 10B president Rene Pellerin was asked for his reaction to the sale.
“We’ve been told, and I’ve been told from local management, that everything’s going to be the same. There’s no changes at this time. It’s business as usual. All our collective agreements and our relationship between Domtar and Local 10B will remain the same going forward, for the time being,” he told NL News.
Pellerin says the most recent four-year collective agreement for workers expired on May 1.
He was asked if having new owners at the mill could affect contract negotiations.
“At this time, I don’t know. I know other Locals in the province that have Paper Excellence as their employer have reached target pattern agreements in the past with them, without any problems. I don’t foresee anything going forward,” he said.
“But again, it’s a bargaining process, and both parties come to the table. We find out the end result after some negotiation.”
Pellerin says Unifor’s Pulp and Paper Wage Caucus will be setting up target bargaining before negotiations start this summer.
This morning, when stock markets opened, Domtar announced it had been sold to Richmond-based company for close to $3 billion. The deal still needs to be approved by shareholders, with Paper Excellence buying each individual Domtar share for $55.50.
Kamloops mayor Ken Christian says the city will welcome the new owner of the pulp mill noting he wants to learn more about Paper Excellence and what its objectives are for the city.
“Certainly, Domtar had a number of initiatives underway, in terms of modernizing the mill and investments on the site. Also some development plans for the Domtar industrial lands. So I’m keen to continue those discussions with Paper Excellence.,” Christian told NL News.
Christian says the pulp mill is a major employer in Kamloops and a major taxpayer as well. It employs about 350 workers and pays more than $5 million per year in property taxes, which makes it the largest taxpayer in the city.
