UPM-Kymmene Corp. (UPM) said an unofficial report states that a six-year labor contract, which will recall 25 of the 265 hourly employees who lost their jobs in early January, was ratified by a union covering the employees of its Blandin Paper Mill. UPM-Kymmene's Blandin Paper unit permanently closed its two oldest paper machines, which led the company to record a write-off of $90 million in the fourth quarter. In a press release Thursday, the paper-products maker said the union contract proposal restores three contingencies offered to union members last fall as an incentive for early settlement. The contingencies include a $1,500 contract signing bonus for each union member; a wage free, in which hourly employees will get retroactive back-pay to compensate them for a 7% wage cut enacted Jan. 1; and the continuation of the company's existing post-retiree medical plan for a group of about 300 long-term hourly employees close to retirement. In addition, the remaining laid-off employees will receive one week of payroll continuation, which includes pay and benefits, for each full year of service with the company, to a maximum of 52 weeks. They also will get the $1,500 signing bonus and be eligible for up to $10,000 in company-paid tuition or training reimbursement payable during the next two years to enhance their skills or prepare them for new jobs. UPM-Kymmene said it was forced to take an aggressive bargaining position during negotiations because the paper industry is facing especially challenging times.