Kruger and Corner Brook mill unions end negotiations without reaching an agreement

Employees to vote on final proposal this coming week

CORNER BROOK, NL, June 16, 2012 /CNW Telbec/ - Kruger Inc. today announced that it left the bargaining table in Corner Brook yesterday without reaching an agreement with the unions. However, all union locals have agreed to meet with their members this coming week to hold a vote on the Company's final proposal, which is modelled on the framework agreement of its main competitor. The deadline for reaching a collective agreement has therefore been extended until June 22 and the future of the Corner Brook Mill is now in the hands of its employees.

The Company must settle labour issues by the end of next week so it can quickly resolve other pressing issues that will enable Kruger Management to complete its assessment of the Mill's viability.

Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. Kruger operates facilities in Quebec, Ontario, British Columbia, Newfoundland and Labrador and the United States.

INFORMATION:
Jean Majeau
Senior Vice President
Corporate Affairs and Communications
Tel.: [phone]
[email protected]
www.kruger.com