Union Concern over Graphic Packaging Plant Closing Announcement, Health of Company

Pittsburgh – The United Steelworkers reacting today to a February 11 announcement by one of its larger employers, Graphic Packaging Holding Co., of its intent to close four plants, including two, in Morris, Ill., and Cantonment, Fla., said it would launch a campaign to settle its outstanding differences with the company and work to help it put its business on the right track.

“The fundamental problem with this business model is that you cannot shutter your way to success. The focus on mergers, acquisitions, and then reduction of capacity to hold up prices never ends up good in the long haul for workers, the community, or even the business. Stakeholders realize that this formula is ultimately costly and risky. The key to real long-term success is innovation, research and development of new markets, and high productivity.” said USW Vice President Jon Geenen, who handles collective bargaining for the union’s paper sector.

Graphic Packaging, which recently spent over $700 million to acquire competitor Altivity Packaging, has lost money in every fiscal quarter since the merger was completed in March 2008. In that time its share values have slipped from about $3 per share to well under $1 per share, costing shareholders over three quarters of their investment. “Clearly our members are not this company’s problem,” said Geenen.

In Morris the news was leaked to the local paper, the Morris Daily Herald, the night before the announcement, and many workers found out from the paper before they found out from the company. The union was not officially notified at all.

“This closing will devastate our communities,” said Brian Clubb, president of USW Local 7-626, which represents the workers in Morris. “More than 170 good people will just be put on the street, and the company could care less.”

“We accepted an agreement for less than our members deserved to help this company, and it did not matter. The company is leaving us with nothing,” said USW Local 9-547 President Ronald Williams. The local represents the workers at the Cantonment plant, where 180 USW-represented workers will lose their jobs.

The USW has a long track record of saving companies in economic difficulty, and of working constructively with employers willing to respect their workers. “This company really needs to get its act together, settle its differences with the union, and work with us to put Graphic Packaging on a better footing, in order to keep more jobs from being lost,” said Geenen.

Contact: Keith Romig 615-714-2704 (cell)

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