Tembec reaches settlement with employees at Quebec pulp mill

Thu Aug 18, 2011 10:35am EDT
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BANGALORE (Reuters) - Canadian forest products-maker Tembec Holdings Inc said it reached a seven-year settlement with employees at its Matane-based pulp mill, ending a three-month strike.

Quebec-based Tembec, which supplies the North American housing market with spruce-pine-fir lumber, expects employees to return to work as of August 22 and operations to resume on September 11.

The plant, which has a production capacity of 250,000 tons per annum, employs 143 people and ships pulp to customers in North America, Europe and Asia.

In May the company suspended production at the mill after unionized employees did not report to work.

Shares of the company were trading down slightly at C$3.03 on Thursday morning on the Toronto Stock Exchange.

(Reporting by Amruta Sabnis in Bangalore; Editing by Joyjeet Das)