Katahdin union workers OK contract
Union members at Katahdin Paper Co.'s mill in East Millinocket yesterday gave tentative support to a contract with a potential buyer, making area officials optimistic a sale could close by tonight's deadline.
More than 400 union members voted last night to back a tentative five-year contract, which would give workers the same wages of $16-$22 per hour they received when the mill closed in April, according to the Bangor Daily News. No wage increases are included, except for unscheduled bonuses that could occur should potential buyer Cate Street Capital return the mill to profitability. About 93% of the workers voted to OK the deal, but some interviewed afterward said they were disappointed to continue being the lowest-paid papermakers in the state. Earlier, town officials in Millinocket and East Millinocket approved tax deals with the New Hampshire-based firm.
Cate Street Capital must conclude negotiations with Brookfield Asset Management, which owns the two mills, by midnight tonight in order to close a provisional deal that would allow some workers in East Millinocket to return to the job Tuesday. A final deal, the details of which have not been released, is scheduled to be reached by Sept. 27. The Millinocket mill closed in 2008.
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