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26 June, 2006
Locked-out members of Communications, Energy, Paperworkers (CEP) of Canada Local 972 ratified a collective agreement with Stora Enso on 20 June, thus ending a five-month labour dispute and ensuring that the paper mill in Port Hawkesbury, Nova Scotia, remains open.
The 600 paper mill workers ratified the contract by the narrowest of margins, 54%, while a separate clerical unit gave approval by an even slimmer margin. The coated paper and newsprint mill was threatened with shutdown by Stora Enso unless a new labour agreement was not ratified by 24 June.
The mill is plagued by Stora’s insistence on cutting paper capacity, and the current high value of the Canadian dollar in relation to the US dollar. Stora Enso has now petitioned the province’s utility commission in order to gain a power rate reduction before it re-starts the mill.
The province of Nova Scotia has already given preliminary approval to a C$65 million, seven-year property tax decrease so that the company would continue to operate the mill.
Throughout the 23-week lockout, CEP Local 972 received vast support from several sources.
In a letter announcing the ratification, Local 972 stated, “This support came from other CEP Locals across the country, other unions across Canada and many other countries, numerous other unions, associations, affiliates, local businesses, local individuals, and our own members who also cared and looked out for one another. This tremendous show of support will be long remembered.”