<b>Deferiet Mill, Union at Odds over Contract</B>

Unionized workers at the Deferiet Paper Co. mill in Deferiet, N.Y., have scheduled a June 14 strike vote after rejecting the company's proposed labor contract two weeks ago.

Management and the union have been attempting to negotiate a new agreement since Deferiet acquired the mill in mid-1999 from Champion International Corp., Stamford, Conn.

For the union, the key issues in the negotiations are proposed changes to vacation time and overtime pay, as well as the introduction of flexibility, according to a union official. Flexibility allows workers to cross trade lines to perform multiple tasks.

A Deferiet official said the company has given the union its final proposal, and declined to comment further.

No further talks between the company and union representatives are scheduled.

The Deferiet mill has capacity to produce 137,000 tons per year of uncoated groundwood and 79,000 tons per year of coated groundwood papers.