Tembec's Temiscaming workers agree to concessions

Workers at Tembec's Temiscaming pulp mill in Quebec have agreed to concession in order for Tembec to invest in mill upgrades.

Instead of accept the 10% wage concessions that are part of pattern bargaining, the workers have agreed to changes in their hours of work. The wages at the Temiscaming mill have been already known to be lagging behind others in the industry.

Concessions include:

• work week moves from 40 hours to 42


• vacation pay will drop from 2.4% to 2.2%


• some changes to vacation


• some changes to payment of benefits

In return for the concessions, Tembec has agreed to invest $300 million into the mill to make the facility, Tembec's flagship operation, more productive.

The vote to ratify the new 5-year contract was a majority at just 53% of the 680 members of the Communications, Energy and Paperworkers (CEP) Union.

If Tembec does not make indications by July 2012 that "significant physical improvements to the site necessary to make the operations competitive", then the unionized members will be able to recover their concessions from the company.

Sources:

Tembec union says concessions pave way for $300 million Temiscaming investment (Winnipeg Free Press)

Collective agreement ratified at Tembec's Temiscaming Operations (Tembec)