Domtar, United Steelworkers Union agree to 4-year umbrella master deal

[Omaha Steve]

http://www.forbes.com/markets/feeds/afx/2008/05/09/afx4992148.html

05.09.08, 3:59 PM ET

SAN FRANCISCO (Thomson Financial) - Members of the United Steelworkers Union have ratified a four-year umbrella master agreement with Domtar Corp. that covers 4,000 workers at 10 sites, the union said Friday.

The agreement breaks with the union's traditional practice of bargaining location-by-location, the union said. Local issues will still be handled at local union bargaining tables and the local unions will still have their own contract expiration dates.

The union said the agreement includes wage increases of between 2% and 2.25%, health care plans that are immediately locked in place in each location and the requirement employees pay 20% of health care premiums.

Domtar shares were trading unchanged at $6.17.

Brigid Gaffikin