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USW Reacts to NewPage Announcement of Coated Free Sheet Shutdowns
Imports Faulted for Permanent Elimination of 664 Jobs in Wisconsin, Maine and Ohio
For Immediate Release January 16, 2008
MENASHA, WIS. – The United Steelworkers (USW) reacted swiftly to today’s announcement by NewPage Corp. of permanent shutdowns for coated free sheet paper production units in Wisconsin and Maine, plus a restructuring of an Ohio unit.
The NewPage shutdowns affect 319 workers in Niagara, Wis. by the end of April, plus 125 workers in Kimberly, Wis. in May, and 60 workers in Rumford, Maine. The company is also permanently closing a converting paper facility in Chillcothe, Ohio, by the end of November, affecting about 160 workers. A total of 664 workers will lose production jobs, mostly in coated free sheet paper.
Jon Geenen, Director, USW District 2, cited the negative determination for anti-dumping and anti-subsidy duties on coated freesheet paper that was issued by the U.S. International Trade Commission (ITC) last November in a trade case petition jointly filed by the union and company against imports from China, Indonesia and South Korea.
“Unfortunately, when the ITC ignores the continuing damage to U.S. industry by bad trade deals, our members and our communities suffer,” Geenen declared. “It is impossible for the coated free sheet paper industry to be bullish about the future, when our government encourages illegal dumping and foreign government subsidy support.” He adds, “Paper imports are filling the void.”
The USW director, who represents workers in Wisconsin and Michigan, confirmed he met with top NewPage management yesterday, when he learned of the capacity reductions and permanent job cuts. “We are urging the company to immediately file an appeal of the trade case against paper imports or re-file a new case, in order to stop these illegal imports with anti-subsidy duties.” Geenen said the company’s recent merger with Stora Enso North America cannot be faulted for the shutdowns.
In the meantime, Geenen relates the USW will be negotiating a package of shutdown benefits for the affected families that includes getting local, state and federal assistance resources for job placement and retraining. He said the USW is committed to developing a federal legislative program that will also combat the unabated flood of foreign paper imports.
USW Local 1166 President Doug LaCount, representing workers at the Niagara plant, said, “We are devastated by this decision. Over the past several years, we have cooperated with management in supporting new work systems and production restructuring in order to reduce costs and assure job security to no avail.” He said, “These family supportive jobs are gone forever and will be a blot on any political leader who has ignored our cry to stop the imports.”
At the Kimberly plant, USW Local 9 President Andy Nirschl said the closing of the No. 95 paper machine marks a turning point for the domestic industry. “We can no longer accept these capacity reductions without a change in attitude by our government to enforce trade laws.”
Gary Hemingway, the USW Local 900 President at the Rumford plant, emphasized “We did everything we were asked to cut costs and increase output by streamlining our production work, but obviously it was not enough. This blindsided us after all we did to update and rebuild our plant’s paper machine.”
Until the announcement, the USW represented about 4,000 productions workers who produced coated free sheet paper at NewPage. The union also represents 18 paper mills operated by other companies producing coated free sheet. According to findings by the U.S. Commerce Department last October, it recommended anti-dumping and countervailing duties on glossy paper imports from Indonesia and South Korea and China.
Contact: Gary Hubbard, 202-778-4384; 202-256-8125
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2008 RELEASES AND ADVISORIES
