MILLINOCKET – Great Northern Paper Inc. is offering free health care coverage to employees willing to take an early retirement.

Brian Stetson, GNP’s director of governmental affairs, said the company has met with union leaders and employees about a voluntary retirement program.

“We are offering a voluntary program in hopes that sufficient people will elect retirement which will minimize the impact of the curtailment of the No. 7 and 8 paper machines,” said Stetson.

The offer is being made in the wake of a downsizing that could leave about 200 workers without jobs. The company employs about 1,300 at its Millinocket and East Millinocket paper mills. The average age of employees is more than 50.

Leaders of eight trade locals, which represent about 375 union workers at the two mills, on Monday held mass meetings to unveil the details of the company’s health care retirement option. In September 1999, health care coverage was eliminated for new retirees.

Under the plan, an employee who is age 62 or has a combined age and years of service equal to 85 as of Dec. 31, can retire early with the company providing health care coverage.

GNP will pay 100 percent of the cost up to $1,000 per month for family and $500 a month for single coverage. Costs exceeding those amounts will be paid by the retiree. Currently, a family plan costs about $692 a month.

Lucien Deschaine, an international representative of the Paper, Allied Chemical and Energy Workers Union, said the offer was good until Sept. 1, but added the company will work with employees who meet eligibility requirements by the end of the year.

Union officials are not sure how long the retiree coverage would be free. “We feel fairly comfortable a person age 58 would reach age 62 before they hit the [insurance cost] cap, or a four- to five-year period,” said Deschaine.

Union officials are leery about how many people may actually take the option.

Deschaine said the pension reductions for retiring early, which range from 4 percent to 6 percent for each year before the age of 62, may not make it financially feasible.

“People couldn’t retire even if they wanted to … look at the stock market,” said Mike Landry, an East Millinocket union official.

“For someone, who is close to retiring and has their financial house together, this would be a good option, ” said Tim Smyth, a Millinocket union official. “Frustrations and emotions are running high.”

Members of two of the East Millinocket trade locals, Nos. 1612 and 362, voted not to present the option to members. Officials said members were concerned about the future viability of the company, and whether the option would be taken away at the end of the contract in 2005.

“There was a lot of concern about the lack of trust within the company,” said Jay Nadeau, president of Local 1612.

Deschaine said he was pleased the federal trade assistance was approved. “I’d rather our federal government do more work in terms of saving our jobs and our industry rather than trying to pick up the pieces at the other end and retraining us to do other jobs,” he said.

The four papermaker locals, which represent about 565 union workers at the two mills, will hold meetings as follows: Local 24, 6:45 a.m., 11 a.m. and 6:45 p.m. Thursday at the Northern Timber Cruisers in Millinocket; Local 152, 7:15 p.m. Thursday at its Main Street office in East Millinocket; Local 12, 7 a.m. and 7 p.m. at the VFW Hall in Millinocket; and Local 37, 7 p.m. Friday at the American Legion Hall in East Millinocket.

The office workers local, which represents about 70 union employees at both mills, will meet at 4 p.m. Wednesday at Stearns High School.