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Negotiations Restart in Canada between Stora Enso and CEP

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13 April, 2006

Bargaining will occur for the first time on 14-15 April since, on 26 January, a lockout was initiated by paper company Stora Enso against 600 members of ICEM affiliate Communications, Energy, Paperworkers (CEP) Union of Canada.

CEP Local 972 and management were close to a settlement in mid-January, but the Swedish-Finnish company was insistent on changes in contracting-out rules, changes that would break from the pattern already established on that issue for the paper sector of Eastern Canada.

Besides addressing the issue of contract labour, the two sides must also come to terms on local terms and conditions at the newsprint and coated papers mills in Port Hawkesbury, Nova Scotia. The company did call union leaders to a meeting in March, but only to tell them that it needed lower power rates and a reduction in both provincial and municipal taxes in order to continue to operate the mill.

Political leaders said there would be no discussions on those subjects until a new collective agreement is in place. CEP Local 972 members have not worked inside the mill since 23 December 2005, the date Stora Enso began an indefinite shutdown to reduce paper inventories.