United Steelworkers Union Members Ratify Four-Year Master Agreement Covering International Paper Converter Facilities

Contact:  Jon Geenen, USW Intl. VP, (o) 920-722-1085
               Stan Johnson, USW District 9 Director, (o) 615-831-6780

Pittsburgh, Pa.–Members of the United Steelworkers Union (USW) overwhelmingly approved by 77 percent a new four-year master economic and security agreement with International Paper (IP) covering 32 converting facilities that take paper and make it into paperboard, cardboard and other paper products.

With the addition of the converters, all USW-represented IP facilities are covered by a framework agreement. Last summer a master economic and security agreement was reached between the USW and IP for the paper mills.

“Never before have we had a single agreement covering so many issues at so many converter locations,” said USW President Leo W. Gerard. “This contract not only contains strong economic and job security provisions essential for our membership, but it also enables IP to compete globally.”

“Our members’ ratification of this new master agreement for the converter facilities is an indicator of the quality of the agreement and a sign of progress in our relationship with International Paper,” said USW International Vice President Jon Geenen. “The activism and unity of members made this contract possible. They’ve been involved in the process since development of a basic bargaining agenda at meetings a year ago.”

“This converter master agreement covers wages, retirement benefits, health insurance benefits, job security issues and joint labor-management efforts in health and safety and public policy, and is similar in structure to the IP master mill agreement ratified last summer,” said USW District 9 Director Stan Johnson. “It provides real security for our members and their families that they didn’t have before.”

In an improvement from the previous IP pattern, wages will increase 8 percent and the monthly service multiplier for pensions will increase $4 over the life of the master agreement, advancing the multiple marker for the entire converting sector of the paper industry.

Local issues and non-economic bargaining will be handled at local union bargaining tables, and the local unions will still have their own contract expiration dates. Because neither party is permitted to engage in a work stoppage during the term of the master and subsequent renewal agreements, any changes to the local agreements will be permitted only by mutual agreement, bringing a halt to an era of difficult and hard bargaining.

Effective immediately in all local union contracts is a successorship clause that keeps the contract in place when a facility is bought or sold and saves the members’ jobs and an agreement that IP will not change the PPO active medical healthcare plan unless the union agrees to it.

The master agreement restricts reduction in the converter work force to volunteers or attrition except during temporary layoffs and partial or complete closures. Both parties agreed to ground rules during organizing campaigns that include a ban on negative attacks and threatening, interrogating or coercing employees.

Voting for the IP converter master agreement was completed by April 20. Ratification required the approval of a majority of members who voted. The converter master agreement covers IP facilities in Alabama, Florida, Georgia, Illinois, Indiana, Louisiana, Michigan, Minnesota, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Wisconsin.

The USW represents about 2,800 workers at IP converting facilities. Overall, the USW represents more than 850,000 workers in North America, including some 130,000 in the paper industry.

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