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A two-year agreement, which will slash wages by 12.5 per cent and eliminate extra pay for night-shift work, was approved Thursday by “a slight majority” of about 200 members of Steelworkers Local 548. The cuts, to take effect Nov. 30 at the latest, are believed to shave nearly $300 off some pay cheques. Vacations are to be reduced by one week and day-shift workers will see their time reduced by four hours every second week. Voting in favour “was a very difficult decision, one of the toughest these people have ever had to make,” Steelworkers staff rep Herb Daniher said following three days of voting. When the company first proposed the cuts two weeks ago, some workers feared the 62-year-old plant would be idled or closed down even if employees agreed to the large concessions. Daniher, who was among a handful of Steelworkers officials who were shown Marathon Pulp‘s financial documents, said he has no reason to believe the plant will take down time, like other Northwestern Ontario pulp mills are doing next week. “Marathon Pulp has been able to weather the storm when other companies have been unable to,” observed Northern Development and Mines Minister Michael Gravelle, whose riding includes the plant. Said Daniher: “We believe their order books are full and they have a good customer base. We believe the numbers we were shown reflect the reality of their situation.” Marathon Pulp declined comment Thursday but said the operation, jointly owned by Tembec and Kruger Inc., might release a statement today. The operation is believed to be saddled with high wood costs, although its energy bill isn‘t as big, on a percentage basis, as other mills. In a two-page document given to workers before voting began, the company said previous wage and benefit rates would be restored if average monthly earnings before interest, taxes and other expenses exceeded $1.25 million for six consecutive months. Some workers voted against the concessions because, they said, the mill was profitable as recently as 2007 and the company needlessly swelled management ranks. “They should have sat down and figured out a different plan,” one veteran plant employee said Thursday. Daniher said it will take more than cuts to wages and benefits to ensure Marathon Pulp survives in the long-term. “Very clearly, we viewed (the cuts) as just one part of a (survival) plan, and we are a part of that plan,” said Daniher. Though the workers took a hit, community leaders noted the current agreement allows for the possibility of employees recovering the concessions they agreed to Thursday. “Hopefully the operation will be able to turn a corner in 2009,” said Marathon Mayor Rick Dumas. Gravelle confirmed Thursday that discussions regarding Marathon Pulp have been taking place between the company and the province, but said he could not provide details. Top of Page |
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September 2, 2010, 8:22 am |