An unexpected walkout of union employees has halted construction work at Vancouver-based Fortress Paper Ltd.’s Fortress Specialty Cellulose Mill in Thurso, Quebec, the company announced this morning.
Fortress (TSX:FTP), which owns three mills, is converting the Thurso mill for dissolving pulp production and building a biomass-based cogeneration plant.
According to Fortress, the construction unions involved in the walkout have not issued an official statement, but the company believes the job action is a protest over a bill proposed by the Quebec government, rather than a dispute with the company.
Construction workers in Quebec have been walking off the job since Friday to protest a proposed provincial law that would claw back some rights of construction unions. Bill 33 would end construction unions’ ability to choose which workers can work at a site.
According to a company statement, Fortress management hopes the situation can be resolved shortly, so that there would be only a minor delay in restarting the mill and the commencement of dissolving pulp production which is planned for early November.
But the company cautioned the duration and outcome of the walkout is out of management’s control and “cannot reasonably be predicted.”
A company spokesman was not available by press deadline. At press time, Fortress stock was down just over 4% to $39.90.
Jenny Wagler
@JennyWagler_BIV