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Contact: Jon Geenen, USW Intl. VP, 412-562-2440, jgeenen@usw.org
Lynne Hancock, USW, 615-828-6169, lhancock@usw.org
Pittsburgh—The United Steelworkers (USW) Union is reassuring its members employed by National Envelope, as well as the company’s customers and suppliers, that the union is committed to seeing the business remain strong as it works through the Chapter 11 bankruptcy process.
“Our union is dedicated to ensuring that National Envelope works through this bankruptcy process to be a stronger, restructured company that is able to capitalize on market opportunities, and be a secure employer for our members and their local communities,” said USW International President Leo W. Gerard.
“Given our perspective on the paper industry, we believe that the foundation exists for National Envelope to emerge from Chapter 11 well poised to be a key player in the overall success of the envelope industry. We have been appointed to the creditors’ committee in the case and we are bringing that perspective to the bankruptcy process.”
The USW represents almost 250 workers at National Envelope’s Westfield, Mass., location and about 425 workers at the Scottdale, Pa., facility. The company controls 15 percent of the U.S. envelope market and also manufactures folders, binders and specialty bags.
In mid-June National Envelope secured $67.5 million in financing to keep it operating while a buyer is found. This money prevented the company from having to lay off 1,600 employees at 11 locations nationwide.
“The firm’s assets are strong, due in large part to the strategic efforts of the current owner, Gores Group LLC, a Los Angeles investment firm,” said USW International Vice President Jon Geenen, who heads the union’s paper sector.
“Another factor that bodes well for the company is its dedicated, high-quality work force that is willing to do what it takes to make this company successful.
“The company has begun a process to find buyers for the business, and we are anxious to begin discussions with any serious potential buyer on competitive labor pacts,” Geenen added.
The USW is the largest industrial union in North America and has 850,000 members in the U.S., Canada and the Caribbean. The union represents workers employed in paper and forestry, metals, rubber, chemicals, oil refining, atomic energy and the service sector.
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