A2 - The Terrace Standard, Wednesday, February 12, 1997

College and
union both
claim win

Ruling doesn’t stop layoffs

By CRIS LEYKAUF

BOTH THE unions and the Northwest Community College
administration are claiming victory in a dispute over. the ccl-
lege’s cost cutting plan, passed on Feb. !. .

Teachers union representatives say the college.is going to
have to scrap its plan to cut 13 full time teaching positions and
25 per cent of university credit courses. The plan was passed by
the college board in order to meet a debt of more than half a mil-
lion dollars, - a

But college president Michael Hill says the plan stands. but
“both sides will continue meeting to look at efficiencies.”

The teachers and support staff unions at the college claim they
never had a real chance to meet with the administration to come
up with an alternative to the job and course cuts.

“The entire process was ill-advised and ill-planned,” said
Rocque Berthiduie, head of the teacher's union.

So the unions took. their complaint to a dispute resolution
committee last. Thursday, ‘It’s'a province-wide body which
aversees employment contracts at colleges. -

The committee is made-up of tive union representatives and
five employer representatives from across the province,

The unions applied to the dispute Committee to force the col-
lege to look at other ways of saving money. before cutting cours-
es and laying off staff.

Berthiaume-claims the dispute resolution committee una-
nimously found in favour of the union.

"It’s.a-clearcut vietory for the union,” said Berthiaume on
Saturday, speaking from Vancouver.

He said the committée's decision states that the cost-cutting
task forces the college administration set up didn’t give the
unions an effective voice in the process lo draw up a new operal-
ing plan. =~ oo ny

“That whole plan is on the shelf,” said Berthiaume, of the plan
the collepe board passed on Feb, 1, “Sure enough they ratified
that plan and five days later it blew up in their faces.”

The dispute committee is calling upon both the union and
administration to sit down to look for new ways to save money,
he said,

“Sure enough they ratified that plan and
five days later it blew up in their faces.”

But Hill disagrees with Berthiaume’s interpretation.

“I find it hard to read into it what they have,” he said.

The actual wording of the committee’s finding is vague. It
calls upon the union and college administration to *<mplement
the spirit and intent of the efficiency review provisions...in the
framework agreement.”

The committee also says the two sides should meet and work
out an agreement before the “‘final implementation of the deci-
sions identified in the proposed 1996-2000 Operating Plan at
NWCC.”

Hill says he talked to representatives from the dispute com-
mittee on Monday, and they told him he could still go ahead
with layoff notices.

However, those layoffs might not come to fruition, if the
unions and administration can find better ways to save money,
Hill said. On the other hand, even if they find more cost savings,
the layoffs could go ahead if the college decides the savings
could be better spent elsewhere, ee

Hil] said the work of the task forces will probably carry on, *

However. Berthiaume says the dispute committee's decision
makes it clear that the task forces are a violation of the unions’
employment agreement.

The only thing that is clear is that the unions and administra-
tion should be working together to find savings.

Hill predicted that both sides are going to have to go back to
the dispute committee to get a clearer interpretation of the rul-
ing. In particular, the wording about a final implementation ofa
four-year plan has him confused.

“But at the end of the day, money has to be saved,” said Hill.

Body found
in vacant lot

THE DISCOVERY of a body Monday morning on a vac-
ant lot downtown has prompted an RCMP investigation.

The dead man was found inside a fenced compound owned
by Progressive Ventures near Kermodei Beverages.

An employee found the body when he entered the yard to
pick up construction supplies.

The police were called around 8:30 a.m. that morning.

Workers said it appeared the man had taken shelter under a
bout there,

A post-mortem exam was to take place Tuesday and
RCMP said they had not yet ruled out foul play.

At press time, the autopsy had not been completed but
RCMP officers on the case felt it was most likely the man
had died of exposure.

Const. Bill Casault said the man had been dead more than
24 hours.

*Refers to
Fabricland
Sewing
Club
Members

Mill plan scrapped

A PLAN ta modemize a portion of Repap’s
Prince Rupert pulp mill has fallen victim to
the company’s prospeclive new owners.

Avenor wood products division Darrell
Madill said Jast week his company won’t be
spending money to fix up the mill’s ‘B’
side pulp line.

That was a key part of Repap’s pitch last
year to the provincial government for ap-
proval to take over the forest licence
belonging to Orenda Forest Products.

Repap said then it needed Orenda’s wood
for security of supply and to use as col-
lateral to borrow up to $250 million for the
improvements.

‘The improvement scheme wasn’t in-
cluded as a mandatory condition by the pro-
vince when it approved Repap’s takeover
of Orenda but it was listed as an expecta-
lion by forests minister Dave Zirnhelt,

But now Avenor’s Madill says bis com-
pany won't follow through on the expecta-
lion.

“We can’t live up to that and we won't
live up to that,’’ Madill told community
and business leaders here last week,

‘Our money is going toward putting the
operations on a firm financial footing.
We're going to first pay attention to the
financial side.”

Duncauson did add that Repap officials
are now telling bim they can make im-
provements for about one-third of the $250
million original estimate,

But he said any decision on major capital
spending will have to be made by the com-
pany which may eventually by the mill and

other Repap operations from Avenor.

Repap officials for some time have
tagged their ‘B’ mill line as a reason for
keeping the Prince Rupert operation from
being more cost effective and efficient.

Uncertain also are the mandatory condi-
tions Repap agreed to undertake when it
received approval to fake over Orenda’s
licence to 342,000 cubic metres of wood a
year, .

One of those was that Orenda’s wood
must be used in the ‘B’ mill. |

This gives rise to speculation about what
might happen should the ‘B’ mill ever
close.

But the most challenging of the condi-
tions facing Avenar is the mandatory five
per cent take back that occurs when a forest
licence changes hands,

Repap now has more than two million
cubic metres of wood under direct licence.

Theoretically, Avenor could lose 119,000
cubic metres upon its lake over of Repap. A
further five per cent would come off the top
when the eventual new owners of the north-
western holdings take over.

“That starts adding up {o a lot of volume
here in a burry,’’ commented Madill.
“We're going to find that difficult.”

Madill also suggested Avenor will contact
Doug Kerley, the provincial govermment’s
jebs protection commissioner, for as-

sistance in resolving the five per cent’

takeback.

That’s because companies can duck the
take back if they have an economic plan ap-
proved by the commissioner.

Banks eat $75M

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TWO BANKS which bave made major loans to Repap are
writing off $75 million of debt as part of the proposed
Aveuor take over of the company.

But the Toronto-Dominion Bank and the Royal Bank are
also buying $75 million of Avenor common stock.

It’s all part of a complicated plan to reduce the Repap
debt as il specifically appties to its B.C. operations.

The plan is to roughly cut the estimated Repap B.C. debt
of $460 million in two. That'll be done by the bank write
off and by Avenor pouring money into Repap’s B.C. hold-
ings to cut the debt. .

And, says Avenor official Darrell Madill, his company is
making available a $100 million credit line to keep
Repap’s holdings up here in business.

Madil! didn’t want to comment directly on the financial
problems facing Repap but did note that the two banks are
playing an increasingly important role in temporarily keep-
ing Repap afloat, at least until March 12.

That's the date Avenor and Repap shareholder meet to
say yes or no to the deal..A two-thirds majority of each
shareholder group is required.

Moves (to reduce Repap B.C.’s debt is but one part of the
complicated Financial arrangements surrounding. Avenor’s
offer to take over Ihe company.

Part of the deal involves Avenor trying to rid itself of
Repap founder George Petty’s Alcell technology to pro-
duce environmentally-sound pulp, That technology con-
sumed about $300 million but never returned any revenue,

Peity does have an agreement to buy back the Alcell end

of Repap for $1 should it not sell within a set period.

“Naw Flecord

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