November 14, 2024
Column

Keeping IP jobs essential to communities

Nine hundred forty-six families in communities in and around Bangor may be about to have their primary wage earners lose their job. Most of these people will not be able to find the good pay, benefits and working conditions they currently enjoy. To family after family this will be a devastating blow.

These jobs are being threatened by International Paper’s decision to cease certain operations at mills in Costigan and Passadumkeag, which would cause 263 people to lose their jobs. The Department of Labor estimates that another 2.6 jobs will be lost for each of those 263 people as the ripple effect goes throughout our community – laying off woodcutters, truckers, local services, etc. So 946 jobs in total would be lost.

There have been offers for the facilities including one last Thursday. IP, which bought the mills just nine months ago from Champion, has so far refused to sell the mills. In its stock reports IP says it expects to get $500 million off of the merger with Champion. In fact, IP boasts that “$70 million merger benefits [with Champion will be] realized in fourth quarter” (of 2000) while “2,100 positions where eliminated.” IP says it is “committed to changing the status quo” by “aggressively managing capacity” and “upping divestiture and merger benefit target.” These and other measures “will lead to improved returns over the cycle.” So IP bought Champion expecting to make $500 million through shutting down plants, limiting competition, and getting big profits later.

The workers at the mills, through their unions, have asked for IP to sell the plants. In fact, the Paper, Allied Chemical and Energy workers (PACE) Local 80 as well as the International Association of Machinists (IAM) Local 2732 are both working hard to keep these good jobs. This makes sense. For years, the workers at the plants have put their time, energy and hard work into these building these mills. They, and their unions, are doing all they can to keep those jobs.

Keeping those jobs is good for all of us in Greater Bangor. What happens to the job market when 946 people start looking for work? What happens to banks when people can’t pay their mortgage? What happens to taxes as we all pay more in various services to help people with the most basic necessities as well as retraining services? And what of the impact to the families? Statistically, when people are confronted by such developments, the rate of divorces, drug abuse, physical abuse and depression all rise dramatically.

There will be a severe cost to many people should IP go ahead with its plan. IP spends enormous amounts of its money on advertising – all to convince us that it is a good neighbor. As the largest private landowner in the United States with annual revenues of over $30 billion, it can afford to do the right thing.

IP should not be faulted for making money. But buying plants just to shut them down, causing great injury to many people, crosses the line. IP’s predatory business strategy is proving itself to be a bad neighbor indeed.

And it gets worse. We are paying IP to, in effect, plunder our communities. It turns out that IP received the second largest reimbursement from tax credits in Maine for the year 1999 – subsidies which are supposed to be used to create jobs. Instead of creating jobs, from December 1998 to December 1999, IP actually did away with 28 full-time jobs. In 1999, IP received $2,659,586 from BETR (Business Equipment Tax Reimbursement), a state subsidy, and $1,860,621 from TIF (Tax Increment Financing), a municipal subsidy, for a total subsidy amount of $4,520,207. More than $1.8 million of that money came from “double dipping” – meaning IP got reimbursed twice for the same property tax bill. And the numbers for all of this will be much higher for the year 2000.

IP should sell the mills and negotiate fairly. The workers and their unions are not looking for handouts -they are calling on IP to sell the mills at fair market value.

The kind of action IP is doing has no place in our community. Moreover, through our tax dollars, we should not pay for it. The Greater Bangor Central Labor Council (GBA-CLC) strives to bring working people together and support efforts to make good jobs – jobs with dignity and respect. Good working conditions make all of us happier and more satisfied with our lives. We believe these things are a cornerstone of our familles and our communities. The GBA-CLC will contact our elected representatives in Augusta to review both IP’s actions as well as its taxpayer subsidies. We encourage others to do so.

At the GBA-CLC we have conducted a food bank for the laid off workers at Eastern Fine Paper in Brewer (PACE Local 1-0403) since December. If need be, we will expand this food bank to the workers threatened by IP. Donations will be greatly appreciated. Please drop off nonperishable food to the Union Hall (20 Ayer St. in Brewer) on Saturday from 8 a.m. until 2 p.m.

A few years ago union workers at Hathaway Shirt in Waterville saved their plant and 400 jobs from an unscrupulous employer who demonstrated no real interest in their communities. It is time for all of us to come together and give our support to the workers, their unions and all those working to save the jobs in Passadumkeag and Costigan.

Greater Bangor Area Central Labor Council is composed of 22 unions with more than 2,500 members. Jack McKay is president. Roxanne Munksgaard, vice president, Pat Murphy, treasurer, Michele Baillargeon, secretary, John Zachary, trustee.


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