Pulp and Paper Canada

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Abitibi and workers reach agreement


July 8, 2004
By Pulp & Paper Canada

A five-year labour agreement between Abitibi Consolidated and its 4,500 workers will see the implementation of an 1…

A five-year labour agreement between Abitibi Consolidated and its 4,500 workers will see the implementation of an 11% wage increase over five years and amelioration to health care and pension plans. The tabling of the proposed contract helped avoid a strike involving employees at the company’s 13 eastern Canadian mills.

Clashes between the union and employees over pensions and job security issues were aggravated by stalled talks in May. Abitibi’s decisions to cut costs while raising prices in an attempt to remain competitive in the face of an advertising slump fueled worker demands for job security. The new settlement will now protect workers from terminated employment due to outsourcing.

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The proposed contract will be presented to workers who will subsequently vote on its contents within the next several days. Employees affected include those in Ontario, Quebec and Newfoundland.


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