Richmond, BC-based Catalyst Paper has resubmitted a proposal to the union that could allow for the restart of the Elk Falls paper mill at a labor cost, all in, of about $40 per hour. The company says this reflects current market realities and includes changes to wages and benefits similar to those already implemented with management and staff employees. The company also indicated that, to date, 63% of eligible hourly workers at Elk Falls have elected the severance option arising from indefinite curtailment of the mill since February 2009.

"With a competitive cost structure, there could be a future for Elk Falls mill and to that end we presented employees with a proposal that could lead to the restart of two specialty paper machines at the mill," said Richard Garneau, president and chief executive officer. "Nonetheless, we also recognize that electing to take severance is a personal choice."

www.catalystpaper.com. PI

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