Resolute Announces Labor Agreement-in-Principle with Seven Canadian Pulp and Paper Mills

Rhea-AI Summary

Resolute Forest Products (NYSE: RFP) announced a four-year labor agreement-in-principle with the Unifor union, covering approximately 700 hourly employees at seven Canadian pulp and paper mills. The agreement awaits ratification by union members. The mills affected include operations in Quebec and Ontario. CEO Remi G. Lalonde emphasized the importance of employee contributions to the company's success. Forward-looking statements regarding the agreement's impact and ratification are included, highlighting potential business risks.

Positive

• Agreement-in-principle reached for a four-year labor contract with Unifor, enhancing labor relations.

Negative

• Agreement subject to member ratification may introduce uncertainty.

MONTREAL, May 15, 2022 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that it reached an agreement-in-principle for a four-year labor agreement with the Unifor union, representing most of the hourly employees in the company's Canadian pulp and paper operations. The agreement-in-principle is subject to member ratification.

The master agreement covers seven of Resolute's pulp and paper mills in Canada: the Dolbeau; Gatineau; Kénogami; Saint-Félicien and currently indefinitely idled Amos and Baie-Comeau facilities in Quebec; and the Thunder Bay operation in Ontario.

"We are pleased to announce this agreement-in-principle with Unifor national and local leadership," said Remi G. Lalonde, president and chief executive officer. "It underscores the important contribution of our employees to the company's success, as well as the collaborative nature of the relationship between the two parties."

The collective agreement covers approximately 700 employees. The details of the agreement are confidential until union leadership presents its terms to members in the coming days.

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release that are not reported financial results or other historical information of Resolute are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the member ratification of the agreement and our future performance in general. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," and other terms with similar meaning indicating possible future events or potential impact on Resolute's business or its shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs, and expectations, all of which involve a number of business risks and uncertainties that could cause actual performance or outcomes to differ materially. The potential risks and uncertainties that could cause Resolute's actual future performance or outcomes to differ materially from those expressed or implied in this press release include, but are not limited to, the potential risks and uncertainties set forth under Part I, Item 1A, "Risk Factors," of Resolute's annual report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (or, the "SEC") on March 1, 2022.

All forward-looking statements are expressly qualified by the cautionary statements contained or referred above and in Resolute's other filings with the SEC and the Canadian securities regulatory authorities. Resolute disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 60 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.

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SOURCE Resolute Forest Products Inc.

FAQ

What is the recent labor agreement announced by Resolute Forest Products (RFP)?

Resolute Forest Products announced a four-year labor agreement-in-principle with the Unifor union for its pulp and paper mills in Canada.

How many employees are affected by the Resolute Forest Products labor agreement?

Approximately 700 hourly employees are affected by the labor agreement.

What must happen after the Resolute Forest Products labor agreement is announced?

The labor agreement-in-principle is subject to ratification by union members.

Which operations are included in Resolute's new labor agreement?

The agreement includes seven pulp and paper mills located in Quebec and Ontario.

What risks are associated with the Resolute Forest Products labor agreement?

The agreement's ratification by union members introduces potential risks and uncertainties for the company's future.