Stora Enso’s Demands Prolong Canadian Paper Mill Lockout

The 16-week-old lockout by Stora Enso at a paper mill in Canada will continue into the foreseeable future. The Finnish-Swedish company, which locked 600 members of Communications, Energy, Paperworkers (CEP) Union off their jobs on 26 January 2006, returned to the bargaining table on 8 May.

But the session was short and discouraging. In a return-to-work agreement, Stora Enso demanded a 10% pay cut from workers in mid-April, and the union’s counter-proposal last week was met with bitter rejection. The company then bypassed the union-management process by mailing to each worker its plea for acceptance, including the concessionary “Recovery Plan” that seeks to cut costs inside the Port Hawkesbury, Nova Scotia, mill. With a proposed wage freeze staring at them, workers would actually see an 18% cut in earnings if the proposal were to be accepted.

Stora Enso has brokered C$65 million in subsidies from the province of Nova Scotia, covering seven years. But the aid package is contingent on a new collective agreement between the company and CEP Local 972, and CEP paperworkers in the maritime province will not slash their livelihoods to meet Stora’s outrageous demands.