(Reuters) — Cascades Inc. says it has dropped plans to shut down its containerboard mill in Trenton, Ont., after the green packaging and tissue paper products maker reached an agreement with its employees.
Cascades had said in April 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 May 29 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 labour 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," says Marc-André Dépin, CEO of the company's Norampac business.
About 114 members from CEP Locals 1112 and 333-05 will have their jobs reinstated, according to numbers from the CEP.
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