MONTREAL, Dec. 10, 2014 /CNW Telbec/ - Tembec reached a settlement with its Temiscaming Site employees who, tonight, voted to end the strike. 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 site in Temiscaming employs 850 people of which 650 are unionized and comprises 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 – lumber, pulp, paper and specialty cellulose – 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 approximately $1.6 billion. Tembec is listed on the Toronto Stock Exchange (TMB).
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward‑looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company's periodic filings with securities regulatory authorities, including under the "risk factors" section of the Company's most recent Annual Information Form. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
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