The Kennedy Heights printing plant will be put up for sale immediately and operations there will cease sometime in 2015, the union was told today by Paul Godfrey, CEO of Postmedia.
The company presented two possible options going forward. One is contracting out the work currently done at Kennedy Heights. The company has “entered into a contract with Transcontinental” to print papers effective early 2015, Godfrey told Local 2000 representatives.
The other option is the union and company reaching an agreement to open a new plant that would cost substantially less to operate than Kennedy Heights. Godfrey explained that the contract between Postmedia and Transcontinental will not go into effect if the company and union reach a deal before Nov. 18, 2013 that reduces costs at a new plant by 70-75 percent.
Our current contract language says “there will be no involuntary loss of employment of any regular employee during the life of the contract as a result of” contracting out.
Union officers will be consulting with our legal counsel and meeting with members to discuss our next steps.
The company said it was hoping to have further discussions soon.
Postmedia also announced today that it is selling the Calgary Herald building and land and will be contracting out printing beginning in November.