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US Steelworkers Ratify Master Framework Agreement with International Paper

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27 August, 2007

US paperworkers employed at International Paper Co., members of ICEM affiliate United Steelworkers (USW), voted to accept a precedent-setting master labour agreement with the firm on 23 August.

The four-year accord covering workers at 14 pulp and paper mills in the US contains wage increases on top of negotiated local (or mill-by-mill) agreements, improvements in health insurance benefits, and lays the groundwork for improved health and safety standards, as well as labour-management cooperation on public policy issues.

But perhaps most importantly, the framework pact contains a "successorship clause," meaning if the company sells any of its unionised mills, the new owner must, as part of the sale agreement, retain all workers, recognise the USW as bargaining representative, and honour the collective bargaining agreement.

"The overwhelming support for this agreement shows how united our members are in pursuing master agreements in the paper industry," said USW President Leo Gerard.

"Successorship clauses protect workers from the unconscionable behaviour of corporations that sell a mill, then disregard the union and the collective bargaining agreement and summarily fire hundreds of people who have dedicated their lives to work there," added Gerard.

The wage portion of the agreement amounts to a 2% increase upon expiration of local agreements, and another 2% on the second anniversary of the contracts. In addition, workers will receive a US$1,000 lump sum payment on the first and third anniversaries of the contracts. The USW represents 8,200 International Paper employees at mills, paper converters, and packaging plants in the US.