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Workers OK FiberMark deal
[November 12, 2007]

Workers OK FiberMark deal


(Watertown Daily Times (NY) (KRT) Via Thomson Dialog NewsEdge) Nov. 10--LOWVILLE -- Union workers at FiberMark on Friday approved a three-year contract that will provide back pay for seven months worth of wage cuts and end an unfair-labor-practice action against the company.



"I think we're all relieved that the madness is kind of over," said Michael W. Bellmore, north country representative of the United Steelworkers Union. The union represents about 160 workers at the company's Bostwick Street plant.

"We look forward to putting the difficult previous negotiations behind us and working as a team to have a strong and healthy future," said Steven M. Moss, an attorney representing FiberMark in contract negotiations.


While declining to discuss specifics of the contract, which takes effect today, Mr. Bellmore said about 90 percent of workers will either have the same or higher wages as in the prior deal. However, more significant concessions were made in wages and benefits for new hires, he said.

The deal includes a two-tier wage and benefit schedule that will allow the company to trim costs for less-skilled laborers, Mr. Moss said.

Health care benefits for retirees were also eliminated, he said.

"Retiree health costs were drowning this company," Mr. Moss said, noting that competing companies don't have that cost.

Concessions were also made in the pension plan, Mr. Bellmore said.

The new contract will bring expenses at the Lowville plant more in-line with other FiberMark plants and its competitors, Mr. Moss said.

Talks between FiberMark and union representatives stalled just before the last labor contract expired April 1. While union officials expected that terms of employment would remain the same until a new pact could be worked out, the company unilaterally imposed wage and benefit cuts April 15.

The deal struck Friday includes a "global settlement," providing full back pay for lost money in wages, overtime and shift differential, Mr. Bellmore said. Workers will receive anywhere from $2,000 to $7,500, he said.

Other April 15 changes, including requirements that employees work swing shifts, will also be revoked, Mr. Bellmore said. Some "peripheral issues" must still be worked out, he said.

The National Labor Relations Board, after investigating union complaints, in August lodged unfair-labor-practice charges against FiberMark. The company was charged with refusal to bargain in good faith and "unilaterally implementing changes regarding wages, hours, vacations, health insurance, pension and other terms and conditions of employment."

A hearing on the charges was initially slated for late September, but union and company officials both requested delays in hopes of reaching a settlement without going that route.

The deal reached Friday will effectively end any federal action against the company, Mr. Bellmore said.

FiberMark workers recently authorized union leaders to implement a strike, if deemed necessary, he said.

About 150 workers at the Climax Manufacturing Co. plant here in July went on strike for about two weeks before reaching a three-year contract. They are also represented by the United Steelworkers Union.

FiberMark, owned by Greenwich, Conn. investment firm Silver Point Capital, makes commercial paper products like vacuum bags, paper for wallpaper and CD covers.

The company also operates a paper mill on Bridge Street, Brownville, that supplies some paper to the mill here, plus plants in Quakertown and Reading, Pa., and the United Kingdom. The Brownville plant is a nonunion shop.

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