Business News

United Steelworkers-Represented Mill Workers Ratify Five-Year Agreement With Packaging Corporation of America

Monday 18. August 2008 - Members of the United Steelworkers Union (USW) ratified by an overwhelming margin a five-year master global agreement for economic and security with Packaging Corporation of America (PCA) that covers over 1,200 workers at paper mills in Valdosta, Ga., Counce, Tenn., Filer City, Mich., and Tomahawk, Wis.

The global agreement sets key economic and security terms. During local bargaining, no changes can be made to local union contracts unless they are mutually agreed to by the local union and the company. Local union contracts are five years in length.
“This global agreement is the latest example of how we are moving national paper bargaining forward and making a difference on behalf of our members in the industry,” said USW International President Leo W. Gerard. “This type of agreement not only helps provide economic and job security for our members, it creates a more positive relationship between the union and the company.”
Upon expiration of the local union contract, wages are increased 2.5% the first and second years, 2.75% the third year and 3% each of the remaining two years, and the defined benefit pension is increased $6 per year of service immediately. There is also a provision for 401(k) loans. The current health care plan and premium contributions are locked in for the life of the current and next local union agreements.
“One of the key achievements of this global agreement was locking in a very quality health care plan and current percentages on premium contributions to keep health care costs from escalating for the PCA mill workers,” said Leeann Anderson, PCA bargaining chair. “Too many employers today are shifting the burden of increasing health care costs onto their employees, but the PCA mill workers will know stability on this important issue through at least 2013 and for some mills all the way until 2015.”
All local union contracts immediately have a successorship clause in case a facility is sold. There is employment security language to secure union work. For members who are laid off there is preferential hiring for them if they transfer to other mills seeking workers.
“This agreement provides a new level of security for workers, and that is becoming increasingly important in this era of sale, merger and acquisition,” said USW International Vice President Jon Geenen.
Short-term disability will be increased $70 over the life of the new local union agreement, and life insurance and accidental disability and dismemberment policies are increased $1,500 each year for a $9,000 total increase. The Filer mill will pick up an additional $7,000 in life/AD&D insurance. Upon the expiration of the current local union agreement, retiree life insurance will be $10,250.
PCA agreed to a code of conduct during organizing drives and committed to reviewing health care cost containment and 401(k) investment opportunities.
Most importantly, the contract paves the way for major capital investments — akin to the recently installed biogas refinery at the Filer City mill — that will result in union work.
This global agreement paves the way for discussions with PCA about a similar agreement for the company’s 20-plus USW-represented converting operations.
The USW is the largest manufacturing union in North America, representing more than 850,000 members, including about 130,000 paper workers. PCA is a manufacturer of containerboard and corrugated packaging.