Brussels, Belgium15-16 November 2005

ICEM WORLD CONFERENCE FOR THE

PULP AND PAPER INDUSTRY

“Globalisation in thePulp & Paper Industry”

Paper and Board Productionby Region, 2004

(2003-2004 + 5.5%) TOTAL: ~360 Mt

North America, 103.9Mt, 28.9%,

(+3.6%)

Asia, 121Mt, 33.6%, (+8.3%)

Europe, 109.3Mt, 30.4% (+4.75%)

Rest of the World, 25.6Mt, 7.1%,

(+7.6%)

Paper and Board Productionby Product, 2004

(2003-2004 + 5.5%) TOTAL: ~360 Mt

Newsprint, 39.2Mt, 10.9%,

(+4.4%)

Printing/Writing, 111.4Mt, 30.9%,

(+6.9%)

Containerboard and Board, 156Mt,

43.4%, (+6.4%)

Tissue/Other Paper, 23.9/29Mt, 6.7/8.1%, (+6.4/-)

NewsprintProduction 2004

(2003-2004 + 4.4%) TOTAL: ~39.2 Mt

North America, 13.3Mt, 34%,

(less 2.6%)

Europe, 13.4Mt, 34.2%, (+5.4%)

Asia, 10.4Mt, 26.5%, (+13.7%)

Rest of the World, 2.1Mt, 5.3%,

(+4.4%)

Printing/WritingProduction 2004

(2003-2004 + 6.9%) TOTAL: 111.4 Mt

North America, 29.7Mt, 26.7%,

(+6.2%)

Latin America, 4.0Mt, 3.7%,

(+4.3%)

Europe, 39.8Mt, 35.7%, (+7.4%)

Asia, 36.3Mt, 32.5%, (+7%)

Rest of the World, 1.5Mt, 1.4%,

(+10.3%)

North America, 53.6Mt, 30.4%

(+4.3%)

Latin America, 9.8Mt, 5.5%,

(+8.4%)Europe, 45.1Mt,

25.6%, (+3%)

Asia, 63.1Mt, 35.8%, (+8.9%)

Rest of the World, 4.6Mt, 2.6%, (+8%)

Packaging Paper and BoardProduction 2004

(2003-2004 + 5.9%) TOTAL: 176.3 Mt

World Pulp ProductionBy Region 2004

(2003-2004 + 3.1%) TOTAL: 188.5 Mt

North America, 80Mt, 42.4%,

(+2.7%)

Latin America, 15Mt, 8%, (+8.3%)

Europe, 50.6Mt, 26.8%, (+3.7%)

Africa, 2.9Mt, 1.5%, (-3.4%)

Asia, 37Mt, 19.7%, (+11%)

Australasia, 3Mt, 1.6%, (+12%)

Mergers and Acquisitions

Gradual decline in volume of M&A transactions since the turn of the century as major companies refocus their attention from securing larger market shares to debt management, profitability, and attractiveness to investors.

Some Major Transactions in 2002-2005

Mead and Westvaco merger (2002) followed by divestment of paper business to NewPage Co. for $2.3 billion in 2005 to focus on packaging and emerging markets.

Willamette takeover by Weyerhaeuser (2002) followed by massive mill closures, divestment of timberland and other assets to reduce debt and achieve “synergy”.

International Paper’s sale of its 50.5% share in Carter Holt Harvey to private investment fund in 2005 as part of restructuring programme to focus on uncoated papers and packaging and divest virtually everything else.

Some Major Transactions in 2002-2005 (cont.)

Announced merger of Smurfit Packaging Corp. and Kappa packaging in 2005.

Announced acquisition of Georgia-Pacific by Koch Industries for $13.2 billion in cash and $7.8 billion in assumed debt in 2005 – an unprecedented blockbuster deal in the sector.

World Top 10 Producersin Pulp and Paper Industry

Production (1,000 tonnes)

1. International Paper (USA) 16,236

2. Stora Enso (Finland) 15.311

3. Weyerhaeuser (USA) 11,439

4. UPM (Finland) 10,886

5. Georgia-Pacific (USA) 10,304

6. Smurfit-Stone Container Corporation (USA) 8. 239

7. Oji Paper (Japan) 8, 081

8. Nippon Paper Group (Japan) 7,898

9. SCA (Sweden) 6,491

10. MeadWestvaco (USA) 5,900

TOP 10 COMPANIES

generate

28% of the global industry output

Delivering Attractive Bottom Lines

Focus on Core Businesses

Rigorous Restructuring and Cost Reduction

Focus on Emerging Markets for Future Expansion

Labour Disputes

Carter Holt Harvey Kinleith Mill, New Zealand

Strike: 8 March 2003 to 3 June 2003.

Who: 270 Production Workers, represented by ICEM Affiliate Engineering, Printing & Manufacturing Union (EPMU) at CHH’s pulp and paper mill in Tokoroa, NZ.

Result: Workers, after being victimized by management contracting out the entire maintenance unit of this pulp/paper mill a year earlier, struck over safety, specifically elimination of trained workers as fire brigade professionals, pay and other detrimental work-rule changes. The 82-day strike preserved the fire brigade, pay increases of 4% and 3% for 2 years, and workers backed the company off a proposed promotions process based on its own skills assessment.

UPM Kymmene’s Miramichi Pulp/Paper Mill, New Brunswick, Canada

Strike: 16 December 2004 to 13 August 2005.

Who: 790 Members of ICEM Affiliate Communications, Energy, Paperworkers (CEP) Union of Canada.

Result: After announcing that it would close a kraft pulp mill at this site in Fall 2004 costing 400 workers their jobs, the Finnish-based company refused to honour the paper sector pattern agreement for Eastern Canada set between CEP and Abitibi-Consolidated. The strike was settled after the CEP Local 689 played an important solidarity role in the Finnish paper sector lockout of May-June 2005.

Turkish Cellulose and Paper Factories(SEKA), Izmit

Plant Occupation and Strike: 20 January 2005 to 10 March 2005-11-14.

Who: 700 Union Members and Family Members of Turkish ICEM affiliate Sululoz-Is.

Result: After occupying their paper mill in Izmit in the face of Turkish police attempting to dislodge them, union members and their families won a decision against the Turkish government’s plan to privatise their paper mill. The occupation strike produced an agreement guaranteeing jobs for all 700 workers by transferring their work status from SEKA to the municipality of Izmit, which will seek to keep the mill open or provide jobs to the workers at similar wage levels.

Finnish Paper Lockout, 6 Paper Companies, 54 Paper Mills

Lockout: 18 May 2005 to 1 July 2005.

Who: 25,000 paperworkers in Finland, members of ICEM affiliate Paperiliitto.

Result: After engaging in industrial action from late March until mid-May due to the paper industry umbrella organization in Finland refusing to comply with the national incomes policy agreement of Finland, five major global companies (Stora Enso, UPM Kymmene, M-real, Metsa Tissue, Myllykoski and Ahlstrom) locked out workers over several work issues. Chief among issues was the companies’ demand to the unlimited right to outsource work, removal of mandated Christmas and mid-summer shutdown days, and the companies’ right to impose 12-hour workdays. A compromise agreement was reached before Finland’s Prime Minister in late June, giving the union a satisfactory result to the contracting-out issue.

ArjoWiggins Decision to Close Carbonless Paper Mill, Corpach, Fort William, Scotland

Action: Unions seek buyer for 39-year old mill.

Who: ICEM UK Affiliate Amicus enters into 90-day consultation period in July 2005 in order to keep the 150-worker Corpach Mill operating.

Result: Amicus and two other unions representing workers at mill embark on a community awareness programme to keep mill in operation.

Norske Skog’s Decision to Close Book/Newsprint mill, Skien, Norway

Protest: Summer 2005, culminating in early September.

Who: Jobs of 380 workers at stake who are members of ICEM Norwegian affiliate Fellesforbundet.

Result: Even though buyers were lined up to buy the Norske Skog Union mill, company insisted on shuttering mill in order to remove capacity of this grade of paper from markets. Norwegian agency allows company to close mill, resulting in appeal from Fellerforbundet.

Stora Enso’s Management Demands at Newsprint/Publications Papers mill, Gent,

Belgium

Strike: 11-day strike from 28 October to 8 November.

Who: 330 workers represented by ICEM Belgian affiliate ABBV-FGTB, and 2 other unions.

Result: Workers seek a liveable pay increase, but harsh procedures by management crushes strike. Stora Enso managers at the Langerbrugge Mill resort to bargaining by ultimatum rather than good-faith social dialogue with unions. Workers vote by 56% to continue strike on 8 November, but need at least a 60% vote for walkout to continue. Result is management now has 330 angry and victimized employees working paper machines and other equipment.

ABB Power Technologies, Figeholm Mill, Oskarshamn, Sweden

Union Action: Union brings company into a Swedish labour court in order to strike and achieve sympathy strikes at paperboard mill.

Who: ICEM Affiliate Svenska Pappers and 130 workers.

Result: Labour Court, in a unanimous 7-0 decision, rules that Union does have the right to strike ABB at Figeholm mill and, in fact, sympathy strikes by transport, electrical and construction unions are legal. Court decision moves company to begin honest dialogue after two years of refusing to match the social standards already established in Sweden’s paper sector.

ICEM Response to Globalisation

3rd ICEM Congress in Stavanger, 2003,reinforced Strategy adopted at 2nd ICEM

Congress in Durban, 1999:

Local Problems - International Solutions,

Through Solidarity

Global Framework Agreements

Now ICEM has 12 Agreements in all of its major Sectors, including 2 in Pulp & Paper Industry.

2002 - ICEM and Fellesforbundet, its Norwegian affiliate, signed GFA with Norske Skog, the world’s largest producer of newsprint today.

2005 – ICEM, its Swedish affiliate Pappers and SCA EWC signed a global agreement with SCA, a global leader in tissue and packaging.

Global Trade Union Company Networks

2002 – ICEM set up a Global Trade Union Network for International Paper, the world’s largest paper and forest products company. The Network is administrated by USW.

2005 – ICEM set up a Global Trade Union Network for Sappi, a global leader in coated fine papers. The Network is administrated by CEPPWAWU.

Global Campaign on Contract and Agency Labour

2005 – ICEM launched a Global Campaign on Contract and Agency Labour after a thorough study of the issue in 2004.