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International Paper and union reach deal in U.S.

Memphis, TN — International Paper announced that it has reached a four-year agreement with the United Steelworkers…
Memphis, TN — International Paper announced that it has reached a four-year agreement with the United Steelworkers of America that lays a new framework for bargaining future local labour contracts at 14 of its U.S. pulp, paper and packaging mills.

We are encouraged by the open and productive dialogue that led to this agreement, said Jerry Carter, IPs senior VP of Human Resources and Communications. The outcome addresses the issues most important to our employees while also enabling International Paper to continue managing operating costs over the long term. The company noted that the agreement establishes a separate wage structure for new hires, and also prohibits labour strikes and lock-outs during the term of current mill contracts and their four year extensions.

The agreement was ratified by union members on August 23. Union officials noted that workers will receive a 2% pay increase on the expiration date of their local contract and on the second anniversary, and a $1000 lump sum payment on the first and third anniversaries. The agreement also includes a successorship provision, stating that if the company sells a mill, it will require the new owners to retain current workers, recognize the union, and honour the collective bargaining agreement until expiration. There is allowance made for new owners to reduce the work force, but this must be made under the seniority terms of the contract.

The United Steelworkers represent about 8,200 of International Papers mill employees.