CEP Local 298 Kitimat B.C.

623 Enterprise Ave. Kitimat B.C. V8C-2E5

Tel (250)632-3231 Fax (250)632-2636

Our email address is cep298@citywest.ca

Employee Relations Department
November 2, 2009

The questions below are some of the more frequently asked in regards to employee pay and benefits. It is anticipated that there will be a need to continue developing and distributing these fact sheets as time goes on. Please email your questions to: heather.wuensche@westfraser.comor share them with your supervisor for forwarding to the Employee Relations Department.

Time Off Accruals

At termination of employment, hourly employees will receive a lump sum payment of all time off accruals owing them according to the Collective Agreement. This includes: dollars accrued towards the 2010 vacation year, current 2009 vacation, deferred vacation, floaters, deferred floaters, lieu time, and deferred lieu time. Supplemental vacation that has already been earned is also paid out and for every completed year towards the next supplemental anniversary, the prorated amount is paid out. Banked time is paid out at half.

Medical Benefits

Medical benefits will continue until April 30th, 2010 for employees that continue to work until February 17th, 2010. The current post-retirement medical benefits are unaffected by the closure. Those employees who are eligible and elect to retire previous to February 17, 2010 will be eligible for post-retirement benefits as outlined in the Collective Agreement. (Page 192 and 193.) W.I., W.C.B. and L.T.D. benefits will not be interrupted as a result of the closure.


The Pulp & Paper Pension Plan administrators will be coming to Kitimat to provide pension information sessions. There will be numerous pension sessions held to accommodate employees’ shift schedules and all participants in the Plan will have the opportunity to attend. Employees who will be 55 or older as of February 17, 2010 will be provided with their pension calculations at this time. Firm dates have not been set at this time, but it is anticipated that sessions will take place sometime between November 15th and 30th.

If you are age 55 or older by February 17th, 2010 and elect to retire as of March 1, 2010, you will be eligible for post-retirement benefits as well as pension bridging in the future (at age 60). All hourly employees who are on the payroll until the end of the notice period will receive severance pay. However, if you choose to retire before February 17th, you would not be entitled to severance pay.

For vested employees younger than age 55, there are two options. The pension money can be left in the Plan and they will be eligible to draw on it once they have turned 55. The second option is to commute the value of the pension into a locked in R.R.S.P./L.I.F. The Pension Plan will provide calculations on commuted values after the final contributions have been made to the plan late February or early March.

For newer employees that are not vested they have the option of being reimbursed their contributions after final contributions have been made to the plan.

All employees are encouraged to attend the upcoming sessions with the Pension Plan and to have the answers confirmed by the Plan Representatives.


Severance payment will be paid to employees working until February 17, 2010. The terms of the severance are outlined in the Collective Agreement. A lump sum payment will be made. The Company will endeavour to pay the severance previous to February 26th so those employees who have unused R.R.S.P. room in 2009 are able to purchase R.R.S.P.’s before the 2009 tax year cut off.

Under the terms of the Pulp and Paper Pension Plan severance monies are not considered pensionable earnings. The Company will be providing financial planning sessions (dates to be announced) where individuals could ask for advice on best approaches for dealing with their lump sum payments.

Employment Insurance

Services Canada has offered to come to Eurocan to provide E.I. information to employees. When firm dates are set they will be communicated to employees. This will give employees an opportunity to confirm information and ask questions of the experts.

Additional Information:

Employee and Family Assistance Counselling:

Currently available all week at the Methanex Administration Office Monday to Friday. Call 1-800-663-1142 for an appointment. Office hours will include evenings. The 1-800 number also offers telephone counseling sessions on a 24-7 basis.
Pulp & Paper Pension Plan Sessions:        dates here
Financial Planning Sessions:        dates here
This will include an E.I. information session.TBA.
Job Fair/Job Board:        dates here
Resume and Application Assistance:        Planning in progress. Information to follow shortly
Eurocan fact sheet 2 Nov. 7, 2009

We are afiliated with the Canadian Labour Congressclclogo