May 10, 2011 / 6:26 PM / in 7 years

UPDATE 1-Tembec says workers at Quebec pulp mill go on strike

* Says employees did not report to work this morning

* Says there was abreakdown in labour discussions (Follows alerts)

May 10 (Reuters) - Canadian forest products-maker Tembec Holdings Inc said production has been suspended indefinitely at its pulp mill in Quebec, after unionized employees did not report to work this morning.

Quebec-based Tembec said employees went on a strike after a breakdown in labour discussions between the company and the union representatives.

The plant, which is located in Matane, employs 143 people and ships pulp to customers in North America, Europe and Asia. It has 99 unionized employees.

The company said it is putting into place measures that will ensure uninterrupted supply to its customers.

Tembec shares were trading down 2 percent at C$4.99, having closed at C$5.09 on Monday on the Toronto Stock Exchange. (Reporting by Vaishnavi Bala in Bangalore; Editing by Jarshad Kakkrakandy) ((vaishnavi.bala@thomsonreuters.com within U.S. +1 646 223 8780 outside U.S. +91 80 4135 5800 Reuters Messaging:vaishnavi.bala.reuters.com@reuters.net)

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