IP union to vote on tentative pact Agreement affects 15-20 workers

PASSADUMKEAG – Union workers at International Paper’s Passadumkeag Stud Mill on Monday will consider a contract proposal for the 15 to 20 workers who will run a small chipping operation after the mill closes in April.

After three days of talks, union and company officials on Thursday reached a tentative agreement. An informational session will be held at 6 p.m. Monday, March 5, at the Local 80 Union Hall, located at 137 South Main St. in Old Town. Immediately after the meeting, workers will vote on the proposal.

Duane Lugdon, an official with the Paper, Allied Chemical and Energy Workers International Union, said the agreement actually was an amendment to the existing labor contract, which expires in February 2005.

“It is nothing to brag about,” said Lugdon. “There are some enhancements for the people who are going to stay behind, but the real answer is that we need this mill sold so every employee will benefit.”

The union is not giving up on efforts to persuade International Paper to sell its Costigan and Passadumkeag mills.

Last week, IP announced it would continue to operate the Passadumkeag plant as a small chipping operation rather than close the facility, if an agreement could be reached with the union. The company plans to lay off between 233 and 239 workers at its Costigan and Passadumkeag facilities on April 19, leaving small chipping operations at the two facilities.

Lugdon said the union will ask Maine lawmakers to consider a resolution urging the paper giant to sell the two mills and to become a good corporate citizen. He said the state has given the company millions of dollars in tax breaks.

“The way they are using people in Passadumkeag is irresponsible,” he said.

Lugdon said the proposal provides very minor pay increases for some of the remaining workers. “Nobody is going to get rich,” he said. The average pay rate at the mill is about $12.35 an hour.

The union leader said the proposal includes paying workers, who come from other departments to make chips, $12.50 an hour regardless of whether they were earning more or less in other departments. Workers who now work in the chipping operations will receive their current rate of pay or $12.50 an hour, whichever is higher, Lugdon said.

The union official said the proposal included total flexibility in filling positions, which meant each worker would become a jack-of-all-trades and perform multiple tasks.

The health care plan would remain the same.

Should International Paper decide in the future to close the chipping operation, Lugdon said the remaining workers would receive the same severance package that was ratified last month.