CREVE COEUR, Mo. and
CHICAGO, Nov. 17, 2010 /PRNewswire/ -- Smurfit-Stone
Container Corporation (NYSE: SSCC) today announced that the UNIK
Local 34 union (UNIK) at the Company's La
Tuque, QC, mill rejected the Company's contract offer
tendered on November 10, 2010.
The offer was rejected by approximately 53 percent of the
voting union members.
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Smurfit-Stone has confirmed its position with UNIK leadership
that its current offer remains unchanged and a lockout will remain
in effect until an agreement is reached.
On November 8, UNIK initiated a
work stoppage at the La Tuque mill
without notice, despite a meeting that was planned to take place on
November 10, 2010, to continue with
talks. The Company has been attempting to negotiate with UNIK
since early 2010. An agreement similar to the offer made to
UNIK had already been reached some months ago with the
Communications, Energy and Paperworkers Union (CEP), which covers
roughly 270 production and office employees at the mill.
UNIK, an independent union not affiliated with the CEP,
covers approximately 140 paper machine workers at the La Tuque mill.
"We have negotiated in good faith all along and again presented
a fair and competitive offer," said Pierre
Pacarar, general manager of the La
Tuque mill. "It is our position that the offer was
consistent with other contracts in the industry and we are
disappointed with this result."
Throughout the lockout, management and a small group of hourly
employees will ensure that the mill's assets are maintained and the
Company continues to meet all of its environmental obligations.
Despite these recent events at the La
Tuque mill, Smurfit-Stone remains well-positioned to meet
both the current and ongoing needs of its customers.
Proactive measures are being taken to ensure continuity of
customer deliveries.
Forward-Looking Statements
This press release contains statements relating to future
events, which are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Actual outcomes may differ materially from those described as a
result of certain risks and uncertainties, including but not
limited to the outcome of negotiations with unions representing
workers at our facilities, changes in general economic conditions,
pricing pressures in key product lines, seasonality, changes in
input costs including recycled fiber and energy costs, as well as
other risks and uncertainties described in the Company's Annual
Report on Form 10-K for the year ended December 31, 2009, as updated from time to time
in the Company's Securities and Exchange Commission filings. The
Company does not intend to review, revise or update any particular
forward-looking statements in light of future events.
Smurfit-Stone Container Corporation is one of the industry's
leading integrated containerboard and corrugated packaging
producers and one of the world's largest paper recyclers. The
company is a member of the Sustainable Forestry Initiative® and the
Chicago Climate Exchange. Smurfit-Stone generated revenue of
$5.57 billion in 2009; has led the
industry in safety every year since 2001; and conducts its business
in compliance with the environmental, health, and safety principles
of the American Forest & Paper Association.
www.smurfit-stone.com
SOURCE Smurfit-Stone Container Corporation