Union sues to block Verso mill sale
Verso Paper’s planned sale of its Bucksport mill to a scrap metal company is facing a legal challenge from a local union chapter citing an antitrust violation.
The Bangor Daily News reported that the Local Lodge 1821 chapter of the International Association of Machinists filed a complaint in U.S. District Court in Bangor on Monday. The complaint seeks a court injunction that would temporarily block Verso’s sale to Montreal-based AIM Development and require Verso to make a stronger effort in soliciting buyers that would continue the mill’s papermaking operations.
In the complaint, the union chapter alleges that the method by which Verso reached a sales agreement with Montreal-based AIM Development was a violation of the Sherman Antitrust Act. It said between the sales agreement and Verso’s planned merger with competitor NewPage, “Verso will achieve dominance in the relevant national market for coated paper and simultaneously reduce output in that market substantially.” The proposed Verso-NewPage merger is still under review by the U.S. Department of Justice.
The complaint also alleges that Verso has been trying to “evade its legal obligation” in paying for severance, final wages and vacation time to employees in a timely manner. Verso has said that it has an agreement with unions to make payments within 90 days of separation, a stance that is being contested not only by the unions but also by a bipartisan coalition of state officials.
Bill Cohen, a spokesman for Verso, said while the company has yet to receive notification of the lawsuit, the company’s policy is to not comment on pending litigation.
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