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French Paperworkers End Mill Occupation in Deal with M-real

21 November, 2011

A dramatic month-long occupation of an M-real paper mill in Alizay, France, ended on 18 November after trade unions CGT-Filpac and CFE-CGC signed an agreement with the Finnish company to end the blockade and release stockpiled printing papers. The strike began on 19 October after M-real dropped plans to sell the mill to one of two remaining buyers, and announced redundancies for 330 French paperworkers. (See ICEM report of 24 October.)

The workers voted in front of plant gates at the Haute-Normandie mill by 95% on 15 November to stop the occupation and leaders of the two unions signed an agreement with M-real on 17 November that provides a temporary reprieve to the plant closure, plus financial and other considerations.

Workers receive a €3,000 bonus for ending the occupation, €1,500 immediately and the remainder in January. M-real commits to running the 230,000-tonne-per-year mill until 7 March 2012 and pledges not to remove equipment or machinery prior. In addition, workers will be paid their salaries during the 30-day strike.

The negotiated agreement and ending of the occupation came just before French police were to move in and force opening of warehoused paper. The plant closing standoff reached the highest levels of French government, after the unions petitioned the state to expropriate the paper mill assets, and spilled into European Parliament meetings in Strasbourg, France, last week, when French political leaders met with Finnish parliamentarians to complain of intransigence by M-real and its 40% owner, Metsäliitto, a forest products company based in Finland.

“No one should believe that we capitulated,” stated CGT-Filpac plant delegate Thierry Philippot. “We will continue to make sure that this company pays for the moral and physical suffering of workers.” Workers filed harassment complaints with French authorities over the psychological effects of M-real changing its plans.

M-real announced on 4 May a major restructuring to exit office and printing paper manufacturing and focus instead on paperboard used for packaging. It meant putting two fine paper mills up for sale, the Alizay mill near Pont-de-l’Arche and the Gohrsmühle mill in Germany, as well as discontinuing carbon paper production at the Reflex mill in Germany.

After paring a potential 65 bidders for Alizay down to two, M-real last month stopped negotiations with a Thai paper company and a French-based equity company and said it would shutter the mill.

That set off the anger of French paperworkers of CGT-Filpac and CFE-CGC and the occupation began, which included placement of large vehicles in front of plant gates that were locked with heavy chains. The unions also brought the case into a French district court in Evreux over failure by M-real to provide the necessary documents on a possible sale. Statutory consultations over the plant closure did start on 8 November but were quickly suspended due to high tensions, and those talks must begin again separate of last week’s protocol agreement to end the occupation.