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Union Votes to Renew Collective Agreement at Tembec Temiscaming

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Tembec, Montreal, Que., Canada, and Unifor Local 233 have signed a Memorandum of Agreement and a Return to Work Protocol towards the settlement of the collective agreement at its Temiscaming Site, Quebec. Yesterday, the 650 unionized employees approved the four-year agreement. Employees will return to work gradually as of tomorrow and operations should return to normal in the coming days.The employees were on strike since November 26, 2014 .

The settlement consists of a four-year agreement to expire in September 2018. The financial impact of the work stoppage, including additional site security and access measures, is estimated to be approximately $5 million and will reduce the reported operating earnings and adjusted EBITDA for December 2014 quarter by that amount. In addition, the Temiscaming Cogen project turbine is now scheduled to produce contract power by mid-January 2015, a delay of approximately one month from the previously scheduled date. The strike combined with the mandatory two-week construction holidays in the Province of Quebec during the Holiday Season have led to this revised schedule.
 
The Temiscaming industrial complex, which employs 850 people, includes four main facilities manufacturing specialty pulp, high-yield pulp, multi-ply coated bleached board, phenolic resins, and lignosulfonates.
 
Tembec is a manufacturer of forest products--pulp, paper, specialty cellulose, and lumber—and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has approximately 3,500 employees and annual sales of some $1.6 billion.
 

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