Sappi union workers ratify new contract, avert strike

FILE PHOTO / COURTESY OF SAPPI Sappi North America Inc., whose Somerset Mill in Skowhegan is shown here, reached a contract agreement with 463 union workers.

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By Jessica Hall

Union workers at the Sappi Mill in Skowhegan ratified a new three-year contract that calls for increased wages and pension benefits for 463 production workers who had threatened to go on strike earlier this week.

Members of United Steelworkers Local 4-9 said it was the most lucrative contract package for members since Sappi purchased the mill in 1995.

“It sets the bar high. It’s going to be hard for other mills not to take a long, hard look at this,” Patrick Carleton, president of USW Local 4-9, told Mainebiz. “In this economy and with this hiring environment, our timing and strategy was sound.”

The new contract includes a 3% wage increase for each year for the three year period retroactive to Aug. 23, 2021, $1 an hour added to each employee’s wage-rate upon ratification, another $1 an hour added to each employee’s wage rate within one year of ratification for taking on additional duties in each crew, as well as a lump sum of $5,000 upon ratification for each employee.

Other benefits include pension enhancements, no increased out-of-pocket costs for health care for the duration of collective bargaining agreement and a $5,000 lump sum payment for retirees.

“After working in the plant through the pandemic, this contract offer represents the dedication and commitment to keep our company profitable in our markets. It was long overdue,” Carleton said.

"We are pleased that Somerset mill employees represented by the United Steelworkers voted to accept our proposal, which contains a number of significant improvements for our employees," Sappi North America said in a statement.

The paper mill workers had been in contract negotiations since their previous contract expired in August, but had hit a stalemate with the company over health care, wages and retirement.

In February, the union members voted 96 percent to reject the company's last best and final offer and members voted to authorize a strike within ten days if a deal couldn’t be reached. Earlier this month, the union served a ten-day notice to the company that members would go on strike on March 21.

After meeting with the union bargaining committee members on March 14-15, the company agreed not to increase out-of-pocket health insurance costs unless premiums rise over 14 percent. The company also agreed to a lump sum payout to the retirees.

Members rejected the company’s proposal again last week, but with the strike looming, Sappi reached out to meet with the bargaining team on March 18th and both parties reached a tentative agreement that evening.

“Our membership spoke and we listened. We gained some monetary growth and protected some language,” said Justin Shaw, USW Local 4-9 executive vice president. “The membership’s dedication during COVID gave us a contract we deserved.”

“Though our members had to push back a little, the company ultimately decided to invest not only in their paper machines, but also in their employees by maintaining current healthcare, continuing pension improvements, and offering one of the best wage proposals seen in the Maine paper industry,” said Mike Higgins, USW staff representative.

Sappi North America, headquartered in Boston, is a subsidiary of Sappi Ltd. (JSE: SAP), a global wood-fiber company headquartered in Johannesburg, South Africa. Sappi Ltd. has more than 12,000 employees, manufacturing operations on three continents in seven countries, and customers in over 150 countries.