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9 May, 2011
Fifteen United Steelworkers (USW) branches in 11 US states last week ratified a new master agreement with International Paper (IP) by a 73% vote count, the union announced. The four-year agreement covers 6,800 workers at 15 pulp and paper mills, and it now builds on a first master agreement covering multiple workplaces of IP that was achieved in August 2007.
The agreement, to take effect in August, includes wage increases of 1% in 2011, 2% in 2012, 1.5% in 2013, and 2% effective on 31 August 2014. It also includes improvements in a defined benefit pension plan, and lump sum payments into an existing employee savings plan of US$1,000 each in 2012 and 2014.
USW Bargaining Committee
In addition, the agreement spells out stabilisation over health care costs, and provides job security, mainly through a “successorship clause.” That means that if IP sells any of the 15 mills, the new owner must retain all workers, recognise the USW as bargaining representative, and honour the collective agreement.
USW Vice President Jon Geenen, who heads collective bargaining for the union in the pulp and paper sector, said the IP agreement continues a historic achievement. “In the past,” he said, “our locals bargained site by site, even though most companies approach bargaining as part of a national strategy.”
Geenen added: “The success of our local unions here sets a precedent for bargaining in the rest of the industry.”
USW VP Jon Geenen
The agreement came together in late March and early April after nearly a year of planning and strategic meetings. It culminated in face-to-face discussions in New Orleans, Louisiana, early last month in which an 80-person USW bargaining committee participated. “One of the main benefits of all the locals bargaining together at the same time is that everyone gets a voice in shaping the package,” said Geenen.
The USW has a similar master accord with IP in the paper converting industry, covering 2,800 workers at 32 paper-converting plants of the company in 18 US states. The first master agreement in converting came into effect in 2008 and expires in 2012.