Members of IBEW Local 1645 (Lufkin TX) Pressured By Inept Management to Surrender Previously Negotiated Contract Items: "Your Money or Your Job"

NOTE: Inept Plant Managers Across the US Are Trying to Force Workers to Give Up Wages and Benefits Under Threat of Plant Closures. MW

2 unions on board at Abitibi

The Lufkin Daily News, Sunday, April 24, 2005

Two of the Lufkin paper mill's three unions have agreed to contract amendments that could help convince Abitibi-Consolidated to resume operations at the plant — a decision that could come as early as this week.

Debbie Johnston, communications manager for the local mill, said Friday that the two unions, which accounted for roughly 84 percent of the mill's workforce before the facility shut down in early 2004, had agreed on amendments to an existing labor contract that runs through June 2007.

Johnston said via e-mail that unspecified amendments to the labor contract had been approved by both the Paper, Allied-Industrial, Chemical & Energy Workers International and International Association of Machinists and Aerospace Workers unions following recent discussions with Abitibi.

The International Brotherhood of Electrical Workers Local 1645 had yet to ratify the amended contract language, however, according to Johnston. Further details regarding the amended labor agreements weren't immediately available, and attempts to reach union representatives for comment were unsuccessful.

Abitibi-Consolidated could make a decision on either relaunching or selling the mill by Wednesday, when its board of directors will meet to release a statement regarding first-quarter 2005 earnings, according to one local economic development official.

Abitibi in January announced that as part of an overall operations review, the Lufkin mill would either re-launch producing primarily value-added paper or be sold outright. Several of the company's Canadian mills are undergoing the same review process.

Although company officials are keeping quiet about plans for the mill, city of Lufkin Economic Development Director Jim Wehmeier has said he expects to receive word about Abitibi's decision by May 1. That's also the day local officials expect to learn if the state has offered any money from the Texas Enterprise Fund as a possible incentive for the mill's re-launch.

Millions of dollars in incentives have already been approved by local taxing entities, pending the company's decision. The company, which has spent around $350 million on the mill in recent years, estimates that it would take as much as $180 million to convert the mill for a successful re-launch.

Company officials locally have said re-launching mill would mean the return of anywhere from 435 to 530 jobs. Some workers would be hired immediately to help with conversion of the mill's No. 8 machine, while others would be hired over an approximately 18-month period, according to the company.

Johnston also reported that while "good progress" had been made on obtaining the necessary environmental permits to operate the mill if it re-launches, those permits had not been finalized as of Friday.

Around 580 people lost their jobs when the mill was idled. Workforce Solutions Deep East Texas has been tracking the employees who applied for services, and released updated statistics on those employees on Friday.

In December 2004, one year after the company announced plans to idle the mill, roughly half of those employees had either found jobs or were enrolled in college classes or training programs. Workforce Solutions reported Friday that around 220 of those workers had found jobs, but couldn't verify how many were still working and didn't have any information on wage rates. Sixty-one of those employees entered the workforce after completing training programs.

At least 30 former Abitibi employees are still looking for jobs. Nine others have relocated to other areas for employment or to search for jobs. Those numbers are likely higher, however, as Workforce Solutions reported in December that the status of 97 employees was unknown.

Eighty-two employees are currently enrolled in training, most of those at Angelina College, according to Workforce Solutions. The agency reported in December that 15 employees had received retirement benefits, four were self-employed and four were receiving worker's compensation.

Local Abitibi officials reported in December that 85 employees had received retirement benefits, and that 11 employees had been transferred to other Abitibi divisions. Ten employees were retained to maintain the local mill while it was idled.
Lynn Winthrop's e-mail address is lwinthrop@coxnews.com.
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