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AV Group Terrace Bay ratifies collective agreement with union workers

October 17, 2022  By AV Group Canada

AV Group Terrace Bay Inc. jointly announces with the United Steel Workers (USW 665) and International Brotherhood of Electrical Workers (IBEW 1861) ratification of a four-year collective agreement.

The collective agreement covers approximately 300 hourly employees at the Terrace Bay operation which produces over 320,000 tonnes of bleached softwood pulp annually.

The facility, which has been without an agreement since May 1, 2022, will see the new agreement come into effect on October 14, 2022, with wage increases retroactive to May 1, 2022.

“AV Group is pleased with the cooperative effort in which this agreement was struck,” stated Terrace Bay president Dennis Visintin. “This agreement provides certainty for our operations and security for employees as we enter a favorable period for the kraft market. It aligns well with creating an employer of choice environment for current and prospective employees. It’s the right agreement at the right time.” added Visintin.


USW spokesperson, Herb Daniher, commented on the outcome, “The membership is pleased to have ratified this agreement. Our negotiations were effective and brings total compensation to a level competitive with regional mills. We look forward to putting this agreement to work for the benefit of our members and the community.” USW Local 665 president, Seppo Vataja added “We are extremely proud of what has been accomplished, not only for our members but the community at large. This is representative of what can be accomplished when company and union work together.”

Highlights of the agreement include wage increases in the range of 20-24 per cent, and pension and benefit enhancements. Improvements to job placement procedures are also expected to optimize return on employee training investments for the company.

Brian Murdoch, representing the IBEW commented, “This four-year agreement represents stability and security for our members which we believe will contribute most favorably to the future success of the Terrace Bay mill, its employees and the greater community.”

“This agreement is key to AVTB’s forward-looking strategy,” added Visintin. “Coupled with our abundant and sustainably certified wood supply, this investment in our people positions us to be a strongly competitive provider of NBSK for the foreseeable future.”


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