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New Stora Enso Offer Will Be Reviewed by CEP Branch at Canadian Paper Mill

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14 June, 2006

Members of Communications, Energy, Paperworkers (CEP) Union of Canada at Stora Enso’s Port Hawkesbury, Nova Scotia, paper mill will meet this week and review a contract proposal presented by the company over the weekend. The Finnish-Swedish paper company presented CEP Local 972 with a proposal on 10 June, after four days of intense talks.

On 30 May, Stora Enso issued an ultimatum to the 600 paperworkers to either finalise a new collective agreement by 24 June or face a closure of the coated papers and newsprint mill. The lockout started on 26 January 2006 over Stora’s insistence on gaining more flexibility regarding outsourcing mill work than allowed under the pattern agreement for the paper industry in eastern Canada.

In negotiations that resumed in early May, the company put forward a restructuring plan that included proposed wage and other cuts totalling between 14 and 18%. This recovery plan included wage cuts of 10%.

Details of the 10 June proposal were not released until CEP Local 972 members have had an opportunity to review it. The 650 workers have been locked out now for 21 weeks.