Talks break down between Tembec and its Union in Pine Falls

250 workers at the Tembec mill in Pine Falls, Manitoba have been locked out since September 1st.

Mediation talks have broken off again between Tembec and the United Steelworkers union.

The union said they have agreed to some concessions, but Tembec is not willing to budge from cuts of 35% in wage and benefits.

A spokesperson for Montreal-based Tembec has said the company needs an "immediate and significant reduction" in labour costs at the paper mill to keep it competitive in a market where demand for newsprint is down.

The mill in Pine Falls is responsible for 50% of the town's tax base. The mayor of the town, Ted Pichor, said some workers have already left to find work elsewhere.

"There's been some frustration that's setting in. I think if it goes on any longer it's going to be quite devastating for a lot of families in the community," Pichor said.

Source:

Talks break down between Tembec, union (CBC)