Stora says it needs union members' help to get mill open again
PORT HAWKESBURY - Management at Stora Enso in Port Hawkesbury has presented a new offer to Communications, Energy and Paperworkers Union local 972 that represents the 620 mill employees.
The offer includes two proposals. The first proposal is the company's latest offer dealing with pattern economics and contract language similar in scope to previous proposals. The second, a Recovery Plan, covers cost-reduction proposals that are prerequisites for restarting the mill.
"The company's new contract offer and the Recovery Plan proposal reflect the mill's deteriorating business situation," says Tor Suther, president of Stora Enso Port Hawkesbury.
The chief negotiator for the company, Gary Parafinczuk says, "We have tabled a proposal to the union bargaining committee. It is similar in scope and content to previous offers, but it now also contains some additional items necessary for the mill's survival. Every employee, both management and union, will have to accept change and sacrifice to give the mill a chance to survive. I hope the union bargaining committee will take these proposals back to the members and let them vote on it."
"This is a very serious situation for our employees, the mill and the broader community. We need to show that all Stora Enso employees are willing to do their part in saving the mill," says Suther.
Suther says it is clear that for the mill to reopen, the contract must be settled and the Recovery Plan must be agreed to. Other issues including power costs, regulations and taxation must also be resolved. The union has said it will likely make a counter offer within the coming week.
Stora Enso has operated in Nova Scotia for 45 years. Currently the mill employs more than 700 people in Northeastern Nova Scotia and provides employment for a similar number in the forests, trucking and private woodlots.
On an annual basis the mill generates $500 million in direct sales and pays $65 million in direct wages and benefits to employees.
