Meriturn, unions reach tentative agreement
The California investment firm looking to buy the two Katahdin Paper Co. mills in northern Maine has reached a tentative labor agreement with union officials.
Meriturn Partners LLC met with union officials yesterday to work on a labor agreement, the details of which were not released, according to the Bangor Daily News. Last week, the company proposed an initial bargaining agreement that included a $2-per-hour wage cut, and vacation and seniority status reductions. The parties are continuing to hammer out details of the health insurance plan, Duane Lugdon, representative for the United Steelworkers International Union, said in a statement. Union members will have to vote on the agreement; dates for voting have not been determined.
Meriturn in February signed a letter of intent to buy the Katahdin Paper Co. mills in Millinocket and East Millinocket for $1, and previously proposed a deal with the town for $48 million in tax breaks. Company and town officials met last night to discuss the deal; details from that meeting were not available. Brookfield Asset Management, which owns the mills, last month said it would close the East Millinocket mill April 22 if the deal does not go through, affecting about 450 workers. The Millinocket mill has been shuttered since 2008.
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