USW and Stora Enso reach paper industry agreement

By working together instead of acting as adversaries, the United Steelworkers union (USW) and Stora Enso North America have chartered a new approach to bargaining in the paper industry.

The contract, which covers Stora Enso's Wisconsin facilities in Stevens Point, Biron, Whiting and Wisconsin Rapids, not only guarantees employment security for the work force, it helps the company remain competitive.

A majority of USW members at all four locations ratified the agreement January 17. The pact reflects the innovative approach taken by the union in negotiations, the first negotiated with Stora Enso since the PACE merger with the USW in 2005.

‘These negotiations are a model for improving the competitiveness of the U.S. paper industry in the world market,’ said USW president Leo W. Gerard. ‘Stora Enso recognizes that high productivity is tied to high road employee relations.’

John Gillen, Stora Enso's president/regional manager, North American region, said the negotiations ‘resulted in a contract that includes an unprecedented amount of change that is necessary for Stora Enso to succeed in a highly competitive marketplace’.

‘I am extremely pleased,’ Gillen added, ‘that we were able to work toward this together with the USW.’

‘The willingness of Stora Enso and the USW to forge a new path in collective bargaining will make the company and the union stronger,’ said USW international vice president Richard LaCosse.

Bill Smith, Stora Enso's director of employee relations said, ‘We are pleased that we have achieved a modern labor agreement that reflects the needs of our company and helps us to address the challenges we are facing. It is our belief this is a fair and equitable contract that is one of the best and most competitive in our industry.’

USW district 2 director Jon Geenen said, ‘These negotiations demonstrated that even the most difficult issues can be resolved when the parties work together on problems. Simply put, companies that rely on confrontation with the union lose a competitive advantage. Those that focus on working with the union to find innovative solutions benefit from it.’

Stora Enso agreed to common contract expiration dates for these facilities and has agreed to the same expiration date for its other paper facilities should the union make that request. Also included in the agreement is successorship language for all its plants, a neutrality pledge during organizing drives at its non-union facilities, job security provisions, gain sharing of profits and top tier wages, pension and health care provisions.

 ‘It was good business sense for the world's largest paper company to agree to common expiration dates,’ said LaCosse.

The union will have a voice in restructuring and redesigning the workplace for greater efficiency. Once the restructuring is finished, workers will get a $1,000 bonus.

The union will also be represented on Stora Enso's European Work Council, which addresses business issues such as finance, production, marketing and long-term strategic planning.

The successorship language negotiated will apply to all of Stora Enso's facilities. This language guarantees that the union contract will remain in effect if the business is sold, leased or transferred.

The agreement also calls for the company to be neutral – not to interfere, in other words –in the event workers in Stora Enso's non-union facilities choose to exercise their right to organize for union representation.

The agreement includes unprecedented job security language that is a first for the paper industry. No active employee will lose permanent employment as a result of the contracting, work restructuring or work competitiveness provisions of the labor agreement.

Base wages increased by nine per cent over the term of the contract, and workers will receive a $3,000 signing bonus. Stora Enso will pay 80 per cent of the health care premiums, and employees will pay 20 per cent. Retirees will also maintain a high level of health care coverage. The pension multiple will increase from $40 to $55 per year of service.

The USW represents over 120,000 workers in the paper industry and is the largest industrial union in North America.