Abitibi strike sustaining paper prices, analysts say

Article Abstract:

Abitibi-Consolidated Inc.'s workers' nine-week-long strike is the lone factor that prevents prices of newsprint to drop, according to analysts. Jim Rowland, who is the publisher of Canadian Paper Analyst in Montreal, Quebec, stressed that the prices of newsprint would have declined if Abitibi workers did not stage a strike because the market is in a delicate situation. The strike by over 4,000 employees at Abitibi, which is based in Montreal, is the main factor behind a 5.3% decline in newsprint production in June 1998 in Canada. Since Jun. 15, 1998, Abitibi's newsprint production has dropped by nearly 50% due to the strike by the Communications, Energy and Paperworkers Union of Canada at 10 mills in Ontario, Newfoundland and Quebec.

Comment:

Its workers' 9-week-long strike is the lone factor that prevents prices of newsprint to drop, according to analysts

Commodity & service prices, Quebec

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Abitibi strike seen as small potatoes

Article Abstract:

Abitibi-Consolidated Inc.'s 4,600 employees in 11 mills in Quebec, Newfoundland and Ontario have launched a strike after the company took a firm stand to negotiate separate contracts with workers at each mill. A spokesperson of the union noted that negotiating a contract on a mill-by-mill basis is a break from the past practice and would allow the company to manipulate contracts by negotiating first with the weakest mill and applying the contract negotiated with other mills. Analysts noted that the strike, which idled production at mills that makes about 1.6 million tonnes of newsprint per year, or over 50% of Abitibi's total production, is unlikely to affect supply or prices of newsprint.

Comment:

Workers in 11 mills in Quebec, Newfoundland & Ontario launch strike after firm refused to negotiate contract on

Personnel administration

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Abitibi takes big charge to cover job cuts

Article Abstract:

Newsprint maker Abitibi-Consolidated Inc. will eliminate another 400 jobs to cut costs. The layoffs, when added to the 900 eliminated earlier, will reduce the company's workforce by 10%. The company will take an after-tax charge of C$80 million to cover the job cuts, C$1- milltion in synergy incentive bonuses to managers and additional $2 million for Y2K compliance. Abitibi expects to reduce its pretax annual expenses by C$200 million as a result of the layoffs.

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