Union: Mill needs date for restart
9/22/08 | 16 comments

Union: Mill needs date for restart


Delay hurts Katahdin region
By Nick Sambides Jr.
BDN Staff

MILLINOCKET, Maine — Brookfield Asset Management’s failure to commit to a restart of the Katahdin Avenue paper mill in 2009 will likely force more workers than necessary to leave the area, union officials said Sunday.

By the conclusion Thursday of negotiations centered on the effects of the mill shutdown, union and mill officials had agreed on a number of points regarding the laid-off workers.

But Duane Lugdon, a representative for three United Steelworkers International unions at the Millinocket and East Millinocket paper mills, said the mill owners have failed to abate skepticism about Brookfield’s claims that it is in negotiations with a third party to restart the mill next year, if the numbers add up, with a biomass boiler.

“They keep telling us they are working diligently at this,” Lugdon said Sunday, “but if you look at it, [investment bank] Merrill-Lynch was sold over a weekend, and we have been hearing about this [biomass plan and negotiations] since May.

“I don’t think they are being as diligent as they say,” he said. “This is not rocket science. They ought to be able to get this done. You can’t go on saying that you’re in negotiations forever.”

Other union officials joined Lugdon in criticizing Brookfield. The company is the parent of Fraser Papers, which manages the mill, and Katahdin Paper Co. LLC, which owns the Katahdin Avenue mill and another paper mill in East Millinocket.

Ike Gabriel, international representative for the National Conference of Firemen and Oilers, said in a statement released by Lugdon that mill management and owners “have a moral duty to drive the uncertainty and anxiety out of this situation in the heart of the Maine woods.”

“Brookfield appears to be incapable of a decision to rebuild a boiler in Millinocket ... for better than two months now,” Gabriel added. “It is time for Brookfield to do the right thing.”

A multibillion-dollar international firm, Brookfield of Toronto announced May 29 that the Millinocket mill’s prodigious oil use would force an indefinite shutdown and layoff of 208 workers if an alternative energy source were not found in 60 days.

Gov. John Baldacci intervened, the mill found energy savings and supportive customers, and the shutdown deadline was extended repeatedly over the summer. Brookfield was in talks with alternative-energy providers on Aug. 26 when its officials ordered the Sept. 2 shutdown in a manner that Baldacci, who has pledged to hold Brookfield to its restart promise, said was abrupt.

According to union officials, management terminated the effects negotiations in a similarly brusque style. It made some concessions designed to ease workers’ transition to unemployment, but didn’t say how many workers would be laid off or set a restart date, Lugdon said.

The lack of a restart date will force workers to leave the region to seek work, Lugdon said.

“People can’t go without incomes,” Lugdon said, “and unemployment [compensation] will get them only so far. By the end of this year people are going to start being really up against it.”

Mill mothballing and cleanup operations, plus a management restructuring, worker retraining, bumping between workers in town and East Millinocket, and the establishment of a winter maintenance crew, likely will cut into the number of layoffs. The layoffs are occurring gradually, management has said.

Eighteen workers were to have been laid off as of Saturday, management said early last week. Brookfield has told mill Manager Serge Sorokin to assemble a biomass transition team and develop a transition and mill operational plan that the team will present to the Brookfield board of directors upon the plan’s completion, said Glenn Saucier, the mill’s personnel department director, who has led the effects negotiations.

Saucier did not return telephone messages requesting comment Sunday.

During effects negotiations, both sides agreed to the following:

•Unaffected workers, such as those facing retirement, can volunteer for layoff, thereby allowing workers slated for layoff to keep their jobs.

• A recall list of all laid-off employees will be maintained until all layoffs get a chance to return to the Katahdin operations.

• Accrued vacation and holiday pay for calendar year 2009 will be paid to workers who indicate by Nov. 1 that they will retire by Jan. 1, 2009.

• Employees leaving the Millinocket mill will have a right for two more years to return to the mill if it restarts. Workers bumped to East Millinocket must return to Millinocket if restart occurs.

• Laid-off workers will keep their health care plan for two months past their layoff.

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Comments
16 comments on this item
On 9/22/08 at 7:01 AM, Knightscross wrote:         Repeated separate thumbs down will cause comment to be hidden

There will be no restart. Wake up people. The mill is bankrupt. Time to move out of Millinocket.

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On 9/22/08 at 9:17 AM, SpecialEd wrote:         Repeated separate thumbs down will cause comment to be hidden

is there anything less reliable than the future of that mill? If you have an opportunity to have a better life elsewhere, get out while the going's good!

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On 9/22/08 at 9:27 AM, Mark44 wrote:         Repeated separate thumbs down will cause comment to be hidden

If the Union wants a restart date from the shysters at Brookfield then they’re in for a long wait.

208 good people were put out on the street, sure some went to East Millinocket, but they bumped someone over there.

When a job is created it affects two if not three others in the community, and the same holds true in job loss.

We were fed a bunch of Canadian BS, taken advantage of, and now they ask for trust? I am speaking of not only Brookfield, but a handful of officials that allowed this to happen.

From the TIFF that extends, even now that the doors are closed, to the influence these hockey rink rejects have over our land~ they have pushed this past the point of negotiation.

Millinocket has a case to just take the dam & power generation capability “without compensation” and Brookfield knows it!

.

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On 9/22/08 at 10:25 AM, concerned1 wrote:         Repeated separate thumbs down will cause comment to be hidden

They've jerked these poors guys around for years. Look your a huge company with DEEP pockets. You can well afford to keep these guys working. The problem is you dont care. You dont have to live here. You dont have the struggles these poor familys have just to pay the bills. You allready stole out power from OUR rivers and are sending it out of the country. What more do you want from them? Iv'e lived here my whole life and thank god never had to work for you people. But my friends do and have and to see what these decent people have been through is enough to make you sick. Enoughs enough. Get these guys back to work... Patrick J. Moir

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On 9/22/08 at 11:44 AM, JoeCentral wrote:         Repeated separate thumbs down will cause comment to be hidden

Sounds like election year stuff to me. Promise not to close the Mill forever until everyone who could be receive some political pressure to do something about this enviro-scam gets back in office. It's almost a brilliant ploy, and nothing less that election year fluff. It's really a shame, it was just becoming profitable again. I think there's a lot more to this.

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On 9/22/08 at 5:52 PM, Johninphilippines wrote:         Repeated separate thumbs down will cause comment to be hidden

Does anyone know the EXACT business and financial reasons why this mill is closing down? All I hear is a multitude of rhetoric blaming the Canadians, the Americans, the unions, and all with apparently no sound basis to form the arguments. Maybe I missed something, but what are the real reasons for the closings?

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On 9/22/08 at 6:13 PM, birdie wrote:         Repeated separate thumbs down will cause comment to be hidden

To quote Bruce Springsteen "Foreman says these jobs are going boys and they ain't coming back to your hometown"... Don't believe a word Brookfield says, they have no intention and are not even looking into restarting this mill. This company has been raped and pillaged for years and now that there is nothing left. So Brooksfield's taking the dams and getting out while the gettings good. Hey, East Millinocket don't be lulled into a false sense of security, it won't be long before you will be hearing "Foreman says these jobs.....

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On 9/22/08 at 7:17 PM, OutsideObserver wrote:         Repeated separate thumbs down will cause comment to be hidden

Why does Baldacci put so much emphasis on this one mill in particular? There are more businesses in Maine either having already closed, or on the verge of closing, not only MILLINOCKET!

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On 9/22/08 at 9:21 PM, Herbert wrote:         Repeated separate thumbs down will cause comment to be hidden

I haven't lived in Millinocket for many years and it is sad to see this going on---what makes you think that jobs will be available outside of Millinocket?

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On 9/22/08 at 10:23 PM, ExPatriot wrote:         Repeated separate thumbs down will cause comment to be hidden

Alright everyone, the problem is two-fold. One glaring problem is the fact that these manufacturing plants are unionized. For their sake, unions serve a significant purpose. For the most part, they offer enhanced safety measures, on-the-job protection and relatively higher wages. However, these attributes come with a price. The region must begin to understand the disadvantage of having a unionized workforce in a manufacturing environment. Until this workforce disbands its ties with the unions, these manufacturing plants will not be able to make any form of reasonable headway. I'm not advocating we resort to the working conditions of 1900, when Great Northern Paper began manufacturing paper, but steps must be taken to address the disparity caused as a result of a unionized workforce. The second problem is the infrastructure of these plants. The product line, those primarily being newspaper print and directory paper, are 20th-century products in a 21st-century world. The plants must find a way to diversify and expand their product line to manufacture goods that can be used by today's world. Unfortunately, this means infrastructure improvements which will require investment into the facilities. Until infrastructure improvements are made, these plants cannot compete with other plants producing similar products. This battle cannot be won without fighting these two fronts. This region cannot afford to delay dealing with these problems any longer.

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On 9/23/08 at 7:50 AM, bicycle1 wrote:         Repeated separate thumbs down will cause comment to be hidden

The solidarity movement changed the world. The workers of Poland were being left without work while their production plants were sitting idle. The workers organized and with the help of some good leadership the workers were able to restart those jobs. The government of this country can be so moved to direct the welfare of the people. The likes of Scott Gonya and other members of Millinocket’s town council are now leading a movement to reconnect the hydropower of this area to the people of this area. We must support this movement or our town will end as a transfer site. The power that kept this town thieving for over 100 years belongs to the people of the State of Maine. This power could run our manufacturing, support our tourist industry, and allow us to heat our homes and run our transportation systems. The next generation could live as well as this Magic city always has.

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On 9/23/08 at 6:18 PM, birdie wrote:         Repeated separate thumbs down will cause comment to be hidden

Some of you don't have a clue about the mill in Millinocket, Yes they have a union. BUT these unions have bent over backwards making concessions in order to keep their jobs and this mill running. Here are a few facts for you.

1. After the bankruptcy these men, and the unions agreed to a substantial pay cuts. These workers are the lowest paid in the industry. Why did they agree to this you may ask. It is because they have taken great pride in their work, their mill, and because they really believed in this company . I for one find it very interesting that now that contracts are about up that Brookfield pulls out, Hmmmm.

2. Millinocket does not make news print and directory paper This mill produces 500 tons a day of super calendar grade A+ paper the highest grade of paper in the industry. This mill is one of the most respected in the paper industry and are wold renowned for the quality of workmanship and product.

3. These workers put out 500 tons a day with a greatly reduced workforce compared to years past and other mills in the industry. on a typical weekend day or night shift they have fewer then 30 people in there to run the entire mill, and yet still are able to produce a quality product.

4. They have overcome all obstacles, persevered turned the mill around and were making a profit when Brookfield pulled the rug out from from under them.

Isn't it interesting that Brooksfield has no comment, Don't you feel they at least owe them that.

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On 9/24/08 at 7:59 AM, David889327 wrote:         Repeated separate thumbs down will cause comment to be hidden

If unions contributed to the problems in Millinocket, it happened in the past, not recently. The damage was done in the past.

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On 9/24/08 at 9:20 AM, bicycle1 wrote:         Repeated separate thumbs down will cause comment to be hidden

Cooked Books

Take all of the cost of union workers, including health benefits add this to the cost of wood and other products used in the production of paper. All of these costs together will not fill the space on a pie graph that is currently being paid out to Fraser for what is called administration cost. On a different graph take a look at how much money is being paid to Brookfield power for the cost of electricity used by the mills. Now remember the wood supply is still at least partially owned by this multi-functional assets management company. This type of book balance has been going on for as long as I can remember. This started with Neekoosa in the 70’s and continues today. Still some try to blame the workers. Two months after the current lay-off medical benefits will be discontinued. Dr Phill would say “How is that working for you today”.

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On 9/24/08 at 11:12 PM, Herbert wrote:         Repeated separate thumbs down will cause comment to be hidden

What plans are you working on in case the mill does not open? Being in the woods could be an ideal place for sporting events both summer and winter..Apply for a state and or Federal grants to make Millinocket a recreation community. Stop trying to save a dead issue and make plans for a better future.

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On 9/25/08 at 10:08 AM, bicycle1 wrote:         Repeated separate thumbs down will cause comment to be hidden

The hydro-power was stolen by shysters that told us that we would all loose our jobs and the jobs would not be coming back. The Enron/Anderson type changes in Augusta and the manipulation of permits and charters enabled the Enron of the north to separate the people of the State of Maine from the ever-flowing current of electricity that comes from our waterways. Now the new boss wants to foul our air with a wood boiler, that will strip our forest, and raise the cost of heating wood, like the wall street manipulated price of oil. We must start to organize now. If a boiler is permitted the people of the state of Maine must mandate all of the power is to be consumed here in the Katahdin area. These mandates must be insisted upon the project or this power will simply follow the other electric power being sold down the river. A tiff to this project would be taxation without representation. More power to the people to run our snow sleds and heat our homes, yes we could show the rest of the world how to live in Vacationland

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