The move will help employers and unions work through the problems that the paper industry faces, according to Unite assistant general secretary Tony Burke.

A letter signed by CEPI and the European Mining Chemicals, Energy Federation (EMCEF) has now been sent to the European Commission, DG Employment, Social Affairs and Equal Opportunities.

Burke, who is a member of the Executive Committee of EMCEF, said: "This is a very positive step.

"We have a good relationship with CEPI and a formal social dialogue structure will benefit the European paper sector."

The first meeting of the new Paper Sector Social Dialogue is scheduled for April 2010.