News From USW: Steelworkers File Unfair Labor Practice Charges Against FiberMark

[Omaha Steve]

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News From USW: Steelworkers File Unfair Labor Practice Charges Against FiberMark

Paper Company Slashes Wages, Benefits of Workers in New York

PITTSBURGH--(BUSINESS WIRE)--News From USW: The United Steelworkers (USW) announced today that the union has filed unfair labor practice charges with the National Labor Relations Board (NLRB) against FiberMark Inc., in Lowville, N.Y., for illegally forcing severe wage and benefit cuts on hourly employees.

On Monday, April 16, FiberMark Inc., held an employee meeting to notify 159 USW members at Lowville that management is discontinuing negotiations with workers over the terms of the union contract and forcing the changes they want.

A memo FiberMark managers sprung on employees at that meeting stated, “Effective immediately and until further notice, we are making certain changes to the terms and conditions of your employment.”

The union bargaining team said that as a result of FiberMark’s actions, some workers would take a loss of nearly $6 per hour, with health insurance deductibles reaching $6,000 annually. Eliminating family health insurance and pensions for retirees has been central to FiberMark‘s demands. Management’s unilateral decision to declare bargaining at an “impasse” also forces employees with up to three years seniority to take lower, “two-tiered” wages.

Union representatives say FiberMark’s CEO Brian Esher stated to workers about retirees: “These legacy costs must go. Once they are no longer employees, they deserve nothing more.”

Union workers quickly responded to management’s actions by filing unfair labor practice charges with the labor board on April 18. The union charge states: “The employer, by its officers, agents and representatives, has refused to bargain in good faith.” The charge also accused the company of “failing to provide relevant information, upon request, concerning the employer’s economic proposals.”

“The United Steelworkers feels FiberMark management broke the law by trying to force these changes in conditions of employment without respecting the workers’ right to a voice in the process,” said USW Representative Mike Bellmore. “We are confident that the NLRB will rule against FiberMark, and workers will be entitled to back pay for the wages and benefits management illegally tried to take away from them.”

Bellmore said, “Though the previous labor agreement expired March 31, the USW contends that management illegally implementing their last offer. We feel the federal government will back the union when the case is investigated, and this episode will end up costing the company money.”

The Steelworkers say FiberMark emerged from bankruptcy on Jan. 3, 2006, and new company managers appear desperate to achieve their demands without regard for workers’ legal rights.

“The USW has and will continue to request from the company needed work-related information to bargain a fair agreement on behalf of our members,” Bellmore said.

FiberMark is now backed by majority owner Silver Point Capital, a private investment firm based in Greenwich, Conn., and is no longer required to file financial statements with the Securities and Exchange Commission, making it harder for the union to make an independent assessment of its economic situation.

On Jan. 5, 2006 FiberMark hired Brian Esher as the new CEO. Esher was 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 in assets was stripped or sold off from FiberMark in 2006.

Union workers at the plant are not taking these demands by management lying down. The local union has begun publishing an informational newsletter entitled, The Legacy Update, in defense of hard-won worker benefits. The union is also conducting “Building Power” training classes for members, and plans to increase union activity as much as necessary to change management’s mind about the cuts.

“The members of our local union are determined to fight for the wages and benefits we’ve built up over the years,” said USW Local Union 1988 President Roger Turck. Citing massive turnout to recent union meetings, he said, “This is a fight to maintain a decent standard of living in our community.”

FiberMark produces coated and embossing paper. Workers at two additional FiberMark facilities in Brattleboro, Vt., and Reading, Pa., also have USW representation. Their labor agreements expire in 2009.

The USW, the largest industrial union in North America, represents more than 850,000 workers in the United States and Canada.