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Deep cuts sought
CARL CLUTCHEY
11/04/2008

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It‘s as bad as many workers thought it would be.

Plant personnel at Marathon Pulp Inc. are being asked to accept a wage cut of a whopping 12.5 per cent, as well as a reduction or elimination of a variety of benefits including vacation time, group insurance and extra compensation for working night shifts.

The proposed cuts, outlined in a two-page document obtained by The Chronicle-Journal, were presented Monday to 200 members of Steelworkers Local 548 at two information sessions.

The document says that wages and benefits will revert to previous rates only if the mill‘s average monthly earnings before taxes, interest and other expenses exceed $1.25 million for six consecutive months.

One worker said earlier that wage reductions would effectively reduce his pay cheques by $275.

The workers are to vote on the two-year proposal in a secret ballot over three days, starting today.

Highlights of the proposal include:

• Work week for day workers to be reduced by four hours every second week.

• Shift differential “will no longer be paid under any circumstances.”

• Group insurance family rate deductible doubled to $100 per family.

• Vacation time for all employees reduced by one week.

Union officials said they won‘t comment publicly on the Marathon Pulp proposals until after voting has been completed.

The document also raises the prospect of a mill closure.

“If in the term of this letter of understanding the mill closes, all monies owed to employees such as severance pay, vacation pay, floaters . . . will be paid at the agreed rates . . . in effect May 1, 2008.

Asked Monday if the cuts would prevent a mill closure, Steelworkers staff rep Herb Daniher said simply: “There‘s no guarantees.”

The union stopped short of recommending or rejecting the proposals, but “we would hope that the members consider them seriously,” said Daniher.

Marathon Pulp, jointly owned by Quebec forestry companies Tembec and Kruger, has not commented on the proposals.

The reduction package appears similar to the one plant workers at Terrace Bay Pulp accepted in 2006 when that mill was taken over by Buchanan Forest Products. Wages for those workers were reduced by 10 per cent.
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