Union members at the Sappi Fine Paper Mill in Cloquet have voted to authorize a strike, the first step that must be taken before they can walk off the job over differences that arise during contract negotiations.

Wage and pension issues have hindered a contract settlement, union officials told WDIO-TV at an informational picket held in October.

"Even though such a vote is not uncommon, and does not mean a strike will occur, we are very disappointed in the membership’s action, given our fair and competitive contract package” Rick Dwyer, managing director of Cloquet operations, said in a prepared statement.

The threat comes just five months after Sappi broke ground for a $170 million investment in its mill. Sappi is converting the Cloquet pulp mill to produce both paper fiber and cellulous that can be used to manufacture fabric. At a June 8 groundbreaking, union officials expressed optimism about the pulp mill investment but worry regarding paper production.

In his statement, Dwyer said the new investment "will help provide attractive jobs for years to come."

"At a time of so much industry uncertainty, including bankruptcies, mill closures and layoffs, we are disappointed that our employees would risk a potential strike over the highly competitive, total compensation and benefits package offered by Sappi," he added.

If employees strike, Sappi will continue to operate its mills, the company said.

Earlier this month, Sappi reported a $107 million net profit for 2012 compared with a $232 million net loss for fiscal 2011. The corporation, based in South Africa, predicted profit growth during 2013.

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