May 29 Cascades Inc said it has dropped
plans to shut down its containerboard mill in Ontario, after the
green packaging and tissue paper products maker reached an
agreement with its employees.
Cascades had said in April that it planned to close its
money-losing Norampac containerboard mill in Trenton. A year of
failed negotiations with the Communications, Energy and
Paperworkers Union of Canada (CEP) had also prompted the
decision to shut the mill.
Cascades said on Tuesday a significant majority of employees
voted in favour of its "final offer" and it has now decided to
keep the mill open. The company did not specify the labor terms
of the offer it made employees.
"The challenges faced by this mill are by no means over.
However, reaching this agreement with our employees is a vital
pre-condition," said Marc-André Dépin, CEO of the company's
Shares of the company closed at C$4.44 on Wednesday on the
Toronto Stock Exchange.