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29 January, 2007
ICEM North American affiliated United Steelworkers (USW) and Stora Enso applauded an innovative labour agreement at four paper mills located in the state of Wisconsin, following union membership ratification on 17 January.
The labour accord, covering some 1,400 USW members, is a five-year contract that will now backdate to 30 April 2005. It expires in 2010. It contains wage increases of 9% over the term of the agreement, and a US$3,000 ratification bonus also was negotiated.
The agreement provides job security for all union members against contract labour, and gives USW local unions a strong voice in workplace redesign and restructuring at the paper mills in central Wisconsin. Workers also will be awarded quarterly bonuses for the redesign. The collective agreement contains language pledging Stora Enso to be neutral in union organising efforts, and contains a successorship clause in the event any facility is sold. It also brings all the mills under the same collective bargaining expiration date.
“These negotiations are a model for improving the competitiveness of the US paper industry in the world market,” said USW President Leo Gerard. “Stora Enso recognizes that high productivity is tied to high road employee relations.”
Added USW Paper Sector Vice President Dick LaCosse, “The willingness of Stora Enso and the USW to forge a new path in collective bargaining will make the company and union stronger.”
“Simply put,” said USW District 2 Director Jon Geenen, “companies that rely on confrontation with the union lose a competitive advantage. Those that focus on working with the union to find innovative solutions benefit from it.”