MONTERREY, Mexico, Aug. 30, 2001 (Reuters) - Mexican paper company Grupo Industrial Durango (Gidusa) said on Thursday it will reopen a plant in western Mexico after ending a four-month-old labor dispute.
The company said in a statement it agreed with workers at the Jalisco state plant to terminate and replace a collective bargaining contract in place for 55 years. The plant of affiliate Compania Industrial Atenquique was closed in April due to high labor costs, representing 25% of production compared with 8-10% at other plants.
"The final liquidation of the collective work contract was made under requirement of the law, respecting workers' rights," the company said. "Compania Industrial de Atenquique plans to reopen this important industrial center in the coming weeks, with a new collective work contract." The plant produces 132,000 tonnes/yr of paper.