Stora lockout over
Workers narrowly ratify company offer
POINT TUPPER - Workers at the Stora Enso paper mill have narrowly voted to ratify an agreement offered by company management.
The agreement paves the way for production to resume and brought the 178-day lockout to an end at about 6 pm Tuesday.
Union members had to vote on two separate offers - one for the main mill and one for the clerical division. The union accepted the mill offer with a 54.5 per cent vote. The clerical vote was even tighter, with just 51 per cent of workers accepting the offer.
Highlights of the deal Stora offered to the union included:
- A 10 per cent wage reduction for 2006, after applying the 2004/05 wage increases of approximately five per cent (a net reduction of five per cent);
- A wage freeze until 2008;
- Wages to be returned and restored based on Stora reaching "defined profitability thresholds";
- Scheduled wage increases for 2006, 2007 and 2008 restored with the execution of the next collective agreement (May 31, 2009);
- 54 employees across a range of departments to accept early retirement and not be replaced;
- An agreement to work through Christmas for the next three years, and;
- Interest-free loans of up to $500 per week for employees who wouldn't return to work immediately and didn't qualify for Employment Insurance (EI). The loans would cover the estimated 20 weeks required to resume start up.
The Journal spoke to the lead negotiator for the Communications, Energy and Paperworkers Local 972, Don MacKenzie, moments after the results were finalized.
"Emotions are running high," MacKenzie said.
"The workers here have decided by a small margin to accept this contract in both the mill and clerical divisions. But there's still a cloud hanging over the workers' heads in regards to the URB (Utilities and Review Board)."
That comment referred to the only remaining obstacle for Stora to negotiate. The company has said it will file an application to the URB by June 30 in an attempt to lower its power rates. A lowered rate, the company contends, is necessary for it to remain viable.
"The acceptance of a new contract shows that employees understand the business issues we are facing and are committed to the mill and to the community," Stora president and general manager Tor Suther was quoted as saying in a press release issued moments after the results were known.
"The last several months have been difficult for everyone concerned - our employees, their families, woodlands suppliers, other suppliers, customers and the community - so I thank all those who helped to finalize this agreement.
"We can now move forward together to get the mill reopened. We look forward to restarting the mill as quickly as possible after reaching an agreement regarding power rates."
MacKenzie said there were "a lot of factors in limbo as a result of this decision."
"There are some questions around, such as can people have access to EI?"
He added that the negotiating team had chosen not to make a recommendation about the offer to the union membership.
"The offer was tabled (by Stora), it was not something we negotiated," MacKenzie said. "Nevertheless, there was an offer made and they've decided to accept it."
When asked if concerns from the residents of Port Hawkesbury had placed additional pressure on the workers to reach an agreement, MacKenzie wasn't sure.
"I think that there was a whole bunch of things that put pressure on people, a whole bunch of things," he said. "But I don't live in every worker's home so I couldn't tell you what."
MacKenzie did, however, imply that heavy media coverage of Stora's promise to close the mill on Saturday if an agreement wasn't reached might have played a role in the vote.
"It was in the papers, wasn't it? I think it affected some people but not everybody. The vote was very close."
