NLRB General Counsel Accuses FiberMark Management of Federal Labor Law Violations

[Omaha Steve]

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News From USW: The United Steelworkers (USW) today announced that the National Labor Relations Board (NLRB) General Counsel has alleged that FiberMark Holdings, LLC, committed federal labor law violations at the paper plant here for unilaterally cutting retiree pensions, health care insurance, slashing wages for workers by up to $6.00 per hour and other offenses.

The USW filed charges against the company when members of USW Local 1988 were forced to work under conditions imposed by FiberMark management – now controlled by investment firm Silver Point Capitol – on April 15, 2007. The union said FiberMark attacked nearly every item related to present and future retirees’ benefits, targeting the economic well-being of vulnerable pensioners.

USW District 4 Director Bill Pienta, the union’s leader for the Northeastern region, said this is only part of the pressure the union is going to bring to bear on FiberMark if they refuse to quickly restore a living wage and decent benefits to union workers.

“Just like the story of David versus Goliath, the investment bankers running FiberMark who think they can toy with the lives of working people are going to have to learn a rude lesson,” said Pienta, who recently met with members of USW Local 1988 in Lowville to talk strategy.

FiberMark was cited in the government complaint for slashing the workers’ family health insurance program. Some workers have seen costs for insurance skyrocket to $6,000 a year.

Management also implemented a tier-two pay scale detrimental to newly-hired workers, and reorganized the work schedule to rotating shifts. Employees’ families have felt the brunt of this company action as workers are now bounced from one shift to the next.

Additional charges have been filed against the company for anti-worker actions, and union representatives say FiberMark’s actions warrant an injunction being issued against the company.

The NLRB has ordered a hearing on the case for Sept. 25, 2007 before an administrative law judge in Watertown, NY.

On Jan. 4, 2006 FiberMark emerged from bankruptcy with Silver Point Capital as the majority and controlling shareholder. Silver Point is a private investment firm based in Greenwich, Conn., which took control of FiberMark during a controversial bankruptcy proceeding.

On Jan. 5, 2006 FiberMark hired Brian Esher as the new CEO. Esher, a founder of Storm Consulting, Inc., which the union said has a long history of stripping company assets and trying to short-change workers for the benefit of owners and stockholders. The union said $218 million was stripped or sold off from FiberMark in 2006 by the new owners.

“It appears the company did not want to bargain but to dictate terms and conditions,” said USW representative Mike Bellmore. “Thankfully, federal law has some protections for the workers who are harmed by uncaring, abusive company officials when they inflect this kind of damage to workers and their families.”

USW Local 1988 President Roger Turck said, “We are committed to fight management over the illegal actions they have taken but remain open to obtaining a fair agreement should management wish to engage in productive dialog.”

The Union noted that the NLRB’s General Council ordered FiberMark to preserve a copy of all company documents related to payroll records, social security payment records, timecards, personnel records and reports, and all other reports necessary to analyze the amount of back-pay due to union workers under the order, which the Steelworkers say could be substantial.