The paper industry plays a leading role in the Canadian economy, both
because of the number of persons it employs and the value of exports i
t generates. This industry is often the source of the only major econo
mic activity in small remote communities, particularly in Quebec. Whil
e it has maintained its leading role in the Canadian economy, the pape
r industry faced severe financial difficulties in the 1980's due to an
accelerated rate of technological change, more restrictive environmen
tal regulations and increased international competition. These changes
have influenced industrial relations policies and practices in the in
dustry. Many recent agreements introducing significant changes in the
traditional organization of work have been concluded by unions affilia
ted with the Federation of Pulp and Paper Workers (FTPF-CSN) represent
ing about one third of the unionized employees in the industry in Queb
ec. In most cases, the agreements were negotiated under difficult cond
itions due to the economic and financial crisis affecting major employ
ers in the industry. Those agreements involved substantial modificatio
ns in work rules and important reductions in the work forces of severa
l mills. These latter were achieved through early retirements and attr
ition. An analysis of recent collective negotiations conducted by unio
ns affiliated with the CNTU in the Quebec paper industry reveals the i
mportance of job flexibility for employers and of job security for uni
ons. Functional flexibility associated with work reorganization has be
en the focus of negotiations concluded in this industry since the mid-
1980's. Employers were looking for a means of improving the efficiency
of production through job reductions and the rationalization of work
practices. Current changes in work organization have directly affected
both the nature and content of tasks performed by workers as well as
the traditional role of unions. In a few cases, the reorganization ind
uced a renewal of collective action through the involvement of workers
and their union representatives in plant management. Craft workers we
re the first to be affected by this reorganization that was later exte
nded to production employees. However, these changes did not lead to a
deskilling of craft workers since the transfer of marginal maintenanc
e tasks to production operators did not affect core tasks in the craft
s. The acceptance by unions of flexibility in return for early retirem
ent plans, training programs and protection against technological chan
ge, reflects a readiness on their part to tie work effort to job secur
ity. This compromise is considered by unions to be a more acceptable s
olution to current economic problems than are salary reductions or red
uced job security.