Fraser Papers contract voted down in Madawaska

Fraser Papers contract voted down in Madawaska


By Jen Lynds
BDN Staff
BANGOR DAILY NEWS PHOTO BY GABOR DEGRE
The Fraser Papers mill in Madawaska.

MADAWASKA, Maine — The 460 employees at Fraser Papers Inc.’s Madawaska mill who are negotiating a new labor contract with the company have turned down an initial offer by the firm.

Representatives for all parties involved will be back at the table today for further negotiations.

The employees are members of the United Steelworkers union. Duane Lugdon, international representative for the Steelworkers union, said Tuesday that contract negotiations began in the beginning of August.

“I cannot give any details about the specifics of the contract,” Lugdon said. “We are not done negotiating yet and are going back to the table on Thursday. I can say that 98 percent of those who voted, voted against the contract.”

The vote was cast Nov. 22. It was the first offer that the union took to a vote, according to Bill Peterson, Fraser’s human resources director.

Peterson also said he could not discuss terms of the contract.

“We agreed not to negotiate in the media,” he said.

Fraser Papers sought bankruptcy protection in Canadian and U.S. courts in June and is in the process of restructuring. The company took steps over the summer to stabilize its finances.

Lugdon said the locals at the company’s Madawaska mill realize the bankruptcy process is ongoing as they negotiate the contract.

“The company has gone public with a plan to reorganize and build a future for the Madawaska mill,” he said. “Everyone in Madawaska realizes that the future of the mill is what we need to ensure. That is why we are negotiating in good faith, and we will continue to bargain as we move forward.”

Lugdon stressed that he could not talk about any specifics, proposed terms or timelines of the contract so as not to jeopardize future negotiations. He did say that he was “not surprised” that employees voted against the initial contract offer.

“The terms of the contract were not advantageous for employees,” he said. “The task now is to go back to the table and build a contract to benefit everyone.”

Fraser’s Madawaska mill is the company’s largest paper mill and is capable of producing a variety of specialty packaging, publishing, label and converting papers.

Headquartered in Toronto, Ontario, Fraser has operations in Maine, New Hampshire, New Brunswick and Quebec.

In August, union workers at Fraser’s Edmundston, New Brunswick, mill ratified a three-year contract. Fraser said it provided for a more competitive labor cost structure with future wage increases tied directly to the profits.

Peterson acknowledged that the initial offer in Madawaska was turned down, but said he was optimistic a deal will be reached.

“Bankruptcy is difficult,” he said. “Contract negotiations are even more difficult because we are in bankruptcy. But we are looking to restructure. We know that concessions are difficult. I am optimistic we can negotiate a contract.”

Lugdon also expressed optimism, saying that the Madawaska employees and everyone in the St. John Valley “is very much concerned about the status and future of the mill.”

“The mission here is about securing the future of the mill, not to enrich anyone’s pocketbook,” he said. “I think everyone realizes how important this is.”

jlynds@bangordailynews.net

538-6567

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Comments
21 comments on this item

The folks are either crazy or overconfident. What would possibly give a papermaker in Madawaska the impression that they can afford to do this? There are no other jobs in Milinocket, in face there are few in the State. Also, I'm reading this on my computer because I no longer buy the newspaper. I'm not sure these workers have the power that they think they have.

they are lucky to still have a good paying job. if fraser ever closed madawaska would cease to exist. in this economy they think they can dictate to the company. wrong.

Agree with both poster's comments above.....Bangorian years back when the mills were prospering every contract negotiation would initially be voted done and then re-negotiated....with the way the economy is and with this mill being in bankruptcy reorganization the offer must have had dramatic changes for employees to even take this chance of voting down the first offer....I definately hope for their sake and for the community agreement can be achieved....

imagine you have a job and you want more? Just maybe the company sees fit to relocate. Then what will they do. There should be a book dummies in a recession.

The unions are part of the reason the paper industry is in this shape.. if Fraser closes they need to realize that they played a role in this and cannot blame everything on management...

Keeping one of the good paying jobs in aroostook county should be the only issue. Any raises or bonuses should be tied to profits not just given as in the past. to look only at a r aise when one should worry about keeping the job in the next few years is very short sighted. the union shoud wake up to the fact that conditions have changed and many companies are against the wall and just trying to stay up and running. so go ahead union put your membes out on the street.

There goes another mill!

Frazer Papers has been going down hill for years. I know we all hate to see our wages get cut, but these guys are still some of the best paid in the state. I worked for Frazer for nearly 30 years until getting laid of in january. My unemployment check is less than half of what I was makeing. These guys need to realize that there is nothing else to go to if the mill closes.

To the employees of Fraser Paper..think carefully people...Fraser has some troubles and everyone knows it...while I understand everyone wants to better their lives during contract negotiations don't negotiate yourselves out the front door which could happen if you are not careful...it's a give and take situation and everyone has to give and take a little to ensure the company and you stay in business...if it's all your way what difference does it make if they close the doors...be sensible , compromise and be so very very thankful that you all have jobs...millions don't...

That has always been the mentality up there....."the mill will never close"..........hang on to your hats Madawaska when it does!!!!!!!

All is lost from central to northern Maine. There is no infrastructure, there is no reason for any company to build anything north of Augusta. Name one reason why a company would decide to do so? Too far from railroads, no sea ports, no internet broad band......pack your bags and head south!

The mentality has always been, "What can Fraser do for me," rather than "What can I do for Fraser." It's time that they start looking out for Fraser. Yes, I agree, greedy unions have brought them to where they are now. They need to go work in other occupations to realize just how lucky they are. Double and triple pay????? That's a joke in most occupations even if they do work on Sundays and holidays.

Ok lets stop saying GREEDY UNION, have anyone of you ever worked at the mill. Night shift or day shift? When you don't have the time to sit down and have a meal because the crew you replaced was backed up for what ever reasons. Have you ever asked for extra help because there is no end in sight, and was refused, this is on a weekly bases. Then you would know that in the past 10 years they have not gotten a raise. They did get a cost of living increase of maybe 3% awhile back i don't remember the year, and that year guess what the medical insurance went up, a nice 3%raise!! What the article doesn't say is that up and above the cut they are asking, guess what the medical insurance is going to go up again. So that is a bigger loss than this mentions. O and there are about 34 big matchos in the upper offices that have recieved a nice bonus of more than a million dollars in all. Just before they cut the little $2,000 scholorship for the few college kids. And again, this article doesn't say that if this contract is voted in, 34 matchos that got that nice bonus' in the spring are getting another one, that is 2 in one year, and some of those are over $200,000. For the union workers that have not received a raise in 10 years and keep on saying yes to the cuts, and yes to the added duties you tell me who are the GREEDY ONES? P.S. For your information, railroads do come through the Madawaska Fraser Paper and we DO HAVE INTERNET BROAD BAND!

So they have to pay for a share of their health insurance. Well join the rest of us. Well lizupnorth the wages and benefits at Fraser are still much better then what the majoiity in Aroostook have to live on. If it is so bad ypu can all quit, I am sure the application line for the jobs would be quite long. So stop your crying that you are a poor union member. Fraser has brought Madawaska the good life so lets have them leave and Madawaska become another welfare town.

If it's true about the management bonuses, then the rank and file do have a valid gripe. Just look at how poorly the Obama Stimulus Package has worked! Corporate Greed is not any better than Union Greed. Suck it in, tighten your belts and ALL concerned help Fraser Paper remain the profitable company that it has historically been. Keep the company healthy and it will keep the workers healthy and prosperious as well. The community, County, and State of Maine needs every job that it can muster.

Let Cool Heads on both sides of the table prevail and not be lead buy any Hot Heads. Count your blessings folks a job today is far better than none at all!

Classic American way!! Blame the union. We have to take concessions to compete with foreign competition, while corporate executives live high of the hog and bottom feeders pay for it. Company looking for government bail out and we're all paying for it, and yes they did get bonuses.

Peter Gordon,

http://investing.businessweek.com/research/stocks/private/person.asp?personId=26536693&privcapId=4220971&previousCapId=4220971&previousTitle=Fraser%20Papers%20Inc

Jeffrey C. Dutton

http://investing.businessweek.com/research/stocks/private/person.asp?personId=10494687&privcapId=4220971&previousCapId=4220971&previousTitle=Fraser%20Papers%20Inc

Glen McMillan

http://investing.businessweek.com/research/stocks/private/person.asp?personId=12929498&privcapId=4220971&previousCapId=4220971&previousTitle=Fraser%20Papers%20Inc

William Manzer

http://investing.businessweek.com/research/stocks/private/person.asp?personId=12929502&privcapId=4220971&previousCapId=4220971&previousTitle=Fraser%20Papers%20Inc

And the their restructuring plan set aside another half million for more bonuses, and the government approves of this so we're told.

Hi I work at frasers mill in madawaska, and i have been employed there for 7 years. I have worked other jobs prior to Fraser. and I Have not forgot where i came from. We all know times are tough, and we are willing to give and take. but the company is not helping.. Bankruptcy...yes we Know!!!We might live up north But we can still Understand It's Severity..Why is the company telling us they are broke, yet they had the Bankruptcy Judge Secure 500,000 Dollars for bonuses to a select 34 upper management???We dont want concessions, But most of us would Take Temporary ones until they would get back on theyr'e feet. They won't even do that.. they have spent our pension fund,with no plans of ever putting it back, Because they are "In Bankruptcy" But They Still Have Money to pay those bonuses...If the Company would Be fair and put that money into the Mill..Instead of there pockets.. Maybe they would see more cooperation during negotiations. We all want fraser to prosper.For example edmunston mill negotiated a contract this summer and they turned it down 2-3 times before agreeing... they though they were safe they did take concessions and went back to work being told that no one would loose thier jobs... Here we are 2-3 months later Edmunston is laying off 25 or more people..But they were told no one else would get laid off? I guess there must have been something in the fine print. Thats what we are dealing with in Madawaska Now Lies and empty promises.. Have any of you ever stood up for something in your life ? Well we are taking a stand, we know the risks. I lost $8000.00 this year and if the contract goes through i will lose another $7,000.00.. We want to help Fraser but they need to stop stealing from us to fill thier pockets...The Most Important Part Of A Company Is the customer..and then it's the Roots Of the company US!!! Feed the Roots And we will Grow!! They don't have to feed us much Just keep things as they are and stop filling thier pockets!!!!!

Madawaska already is a welfare town never seen so many poor people that live there in my life. Guess I'll wait to buy my snowmobile there will be lots of them for sale when the mill closes.

It sucks but the mgt did what it did and the union could show the mgt that they the union care more more for the welfare of the company than the so called mgt by accepting the concessions. Somebody has to lead the way, if the mgt cannot then why, please tell me why the union cannot. Come on you have best opportunity to lead by example. Forget the bonuses and the mgt bs, it is yesterday news, its in todays news and will be in tomorrows news. But Fraser should not become yesterdays news because of pride. Forget the money, sell your toys if you have to. But do not let the mgt bs get in the way, that will never change, they are under no accountability. Good luck, mes ami.

Oh, for the Farmer101 who claims he has never seen a welfare town like Madawaska. Since your on the high life why wait to buy your ski doo second hand when slightly used will do except at the prices the retailers are selling theirs for, heh? Tell me. Go to Detroit if you want to see some poverty.

Being from the Valley and NOT working at Fraser, I cannot understand why a UNION is at the mill in the 1st place. I would suggest that Fraser close the mill and force layoffs the rehire people that want to work for 15.00 @per hr instead 28.00. Wake the hell up Fraser employees do not let the union tell you what to do...This is the future of the Valley and there is alot at stake for everyone dont be selfish. Sell your camp the 3rd vehicle the other 4 wheeler and live within your means and everything will be ok.

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