The Manitoba Labour Board has ordered an immediate end to a prolonged lockout at the Tembec newsprint mill in Pine Falls, Man., CBC News has learned.

The mill has been idle since Sept.1 after the Montreal-based company locked out more than 250 unionized workers and stopped operations. Prior to closing, the company had said it needed "an immediate and significant reduction" in labour costs to stay competitive in the newsprint market.

The United Steelworkers union had applied to the labour board for arbitration in the labour dispute. This morning, the board ordered Tembec to end the lockout, the union said.

Employees on the picket line have just learned of the new development, United Steelworkers union spokesperson Wayne Skrypnyk said.

Not going back to work

However, unionized employees will not be going back to their jobs in the wake of Wednesday's announcement.

Tembec announced in December that it was putting the mill up for sale and would not be resuming operations even if the lockout was ended.

Skrypnyk said the lockout's end isn't considered a victory for the union workers, but will come as some relief to them as they'll now be issued layoff notices and become eligible to apply for Employment Insurance benefits.

'We're still looking for a steady employer — someone willing to keep the 80-year tradition going here that Tembec has destroyed in the last 10 years.'—Brett Sokolowski, mill worker

While the EI payments will ease some financial pressures, it is not the resolution people really want, said worker Brett Sokolowski.

What people really want is for the mill to be reopened.

"We're still looking for a steady employer — someone willing to keep the 80-year tradition going here that Tembec has destroyed in the last 10 years," he said.

If no one comes forward to buy it and reopen it, many residents will have to leave Pine Falls, Sokolowski added.

An arbitrator will still be appointed to try and resolve outstanding issues between labour and management, Skrypnyk said.

The mill is about 130 kilometres northeast of Winnipeg.