United Steelworkers-Represented Mill Workers Ratify Five-Year Agreement With Packaging Corporation of America

    PITTSBURGH, Aug. 15 /EMWNews/ -- Members of the United

Steelworkers Union (USW) ratified by an overwhelming margin a five-year

master global agreement for economic and security with Packaging

Corporation of America (PCA) that covers over 1,200 workers at paper mills

in Valdosta, Ga., Counce, Tenn., Filer City, Mich., and Tomahawk, Wis.



    



    The global agreement sets key economic and security terms. During local

bargaining, no changes can be made to local union contracts unless they are

mutually agreed to by the local union and the company. Local union

contracts are five years in length.



    "This global agreement is the latest example of how we are moving

national paper bargaining forward and making a difference on behalf of our

members in the industry," said USW International President Leo W. Gerard.

"This type of agreement not only helps provide economic and job security

for our members, it creates a more positive relationship between the union

and the company."



    Upon expiration of the local union contract, wages are increased 2.5%

the first and second years, 2.75% the third year and 3% each of the

remaining two years, and the defined benefit pension is increased $6 per

year of service immediately. There is also a provision for 401(k) loans.

The current health care plan and premium contributions are locked in for

the life of the current and next local union agreements.



    "One of the key achievements of this global agreement was locking in a

very quality health care plan and current percentages on premium

contributions to keep health care costs from escalating for the PCA mill

workers," said Leeann Anderson, PCA bargaining chair. "Too many employers

today are shifting the burden of increasing health care costs onto their

employees, but the PCA mill workers will know stability on this important

issue through at least 2013 and for some mills all the way until 2015."



    All local union contracts immediately have a successorship clause in

case a facility is sold. There is employment security language to secure

union work. For members who are laid off there is preferential hiring for

them if they transfer to other mills seeking workers.



    "This agreement provides a new level of security for workers, and that

is becoming increasingly important in this era of sale, merger and

acquisition," said USW International Vice President Jon Geenen.



    Short-term disability will be increased $70 over the life of the new

local union agreement, and life insurance and accidental disability and

dismemberment policies are increased $1,500 each year for a $9,000 total

increase. The Filer mill will pick up an additional $7,000 in life/AD&D

insurance. Upon the expiration of the current local union agreement,

retiree life insurance will be $10,250.



    PCA agreed to a code of conduct during organizing drives and committed

to reviewing health care cost containment and 401(k) investment

opportunities.



    Most importantly, the contract paves the way for major capital

investments -- akin to the recently installed biogas refinery at the Filer

City mill -- that will result in union work.



    This global agreement paves the way for discussions with PCA about a

similar agreement for the company's 20-plus USW-represented converting

operations.



    The USW is the largest manufacturing union in North America,

representing more than 850,000 members, including about 130,000 paper

workers. PCA is a manufacturer of containerboard and corrugated packaging.



    Contact: Leeann Anderson, PCA Bargaining Chair, (c) 412-225-5964



    Jon Geenen, USW Intl. VP, (o) 920-722-1085