Stora Enso chiefs have squared up to union leaders after a six-month standoff that has paralysed production at Nova Scotia in Canada.
Three days of talks this week aim to break a deadlock that started at Christmas, when staff were locked out because of work shortages and the unions rejection of a 10% pay cut.
Vice president of finance Rick Cecchetto threatened permanent closure of Port Hawkesbury Mill unless a deal was made by 24 June.
He insisted the ultimatum was not about "putting a gun to anybodys head" but making a "valid business case" to stem losses, estimated by the firm at about 50m (CAN$100m) in a decade.
Communications, Energy and Paperworkers Union branch president Ron Beaton said members were unhappy with pay, operator-flexibility and overtime issues.
"We are not going to cut our contracts to pieces, but hope to reach a settlement," he said, adding the firm wanted to cut several jobs by 2007 if work resumed.
Port Hawkesbury Mill on the east coast of Canada opened over 40 years ago.
Stora Enso standoff with workers
The fate of more than 600 paper jobs could be decided this month in crunch talks between managers and locked-out staff who face a deal-or-dole ultimatum.
