When Naheola, Brunswick and Cleveland entered negotiations, the Company’s bargaining pattern consisted of four year contract offers that included two small lump sums along with two-2% wage increases during the contract’s proposed four year term. The company was also advocating a corporate wide initiative to alter health care coverage to include ONLY consumer driven health care plans with very high deductibles that would only serve to limit our access to medical services. Widespread objections to the company’s proposal led to months of hard work by local unions at the bargaining table, coordinating bargaining and high level meetings that have now set the stage for a better deal at GP’s USW locations. As a result of your support and solidarity, we’ve achieved a new opportunity to establish improved contract standards.
On January 9, the GP Union Bargaining Conference agreed overwhelmingly to new bargaining standards that address concerns about box plants wages that have been suppressed for too long, but also address the need for improvement in the mill pattern as well. Most importantly, the new standards recognize the need for affordable health care, better pensions and assurances that what we bargain now will remain for the life of the contract and in place if a location is sold. Contracts failing to meet these goals will not be subject to ratification. The following basic standards will apply to contracts at mills and box plants for Agreements expiring in 2007, 2008, 2009, and 2010.
Wages
Mills
** Mills in mid bargaining cycle (meaning that they have not bargained since beginning of cycle that included lump sums)—Year 1 - 2 %; Year 2 - $1000 lump sum; Year 3 - 2%; Year 4 - $1000 lump sum
** Mills, starting new bargaining cycle, 2%-1%-2%-1% at anniversary/18 mos/30 mos/40 mos.
Box Plants
**Effective immediately Box Plants 2%-2%-2%-2% on each anniversary date.
** Mills and Box Plants will receive retroactivity for timely ratification of agreements.
Health Care
**The company must not rate locations individually. Premiums to be based on claims experience of all GP employees enrolled in the same company-wide plan. For example, the current PPO will be evaluated using the experience of the same PPO plan. The GPABH plan will be based on experience of all participants enrolled in the same GP-ABH plan.
** Process for evaluating the comparability of network issues that arise from the change in plan administration and network, by exploring alternatives, including, but not limited to:
* Improving the current networks
* Securing other and/or additional network providers
* Addressing unreasonable disparities by treating out of network providers as “out of area” or
“in-network”.
** Transitioning for people who are pregnant or being treated for a serious health problem(s) to assure continuing coverage.
** Premium cost sharing - Mills at 75/25. Box Plants at 80/20.
** GP and the USW agree to explore additional incentives including a reduction of premium co-pays.
**GP and the USW agree to meet annually to review premium changes & discuss method to calculate.
**Retirees will continue to be eligible to purchase health care through the retiree medical health care plan at their own expense.
Pensions
Mills
** $50 benefit per month per year of all past and future services.
** PIUMPF (Naheola, as proposed; Halsey and Cedar Springs, to be handled comparably to Naheola).
Box Plants
**Improve by $1 per year in each year of the contract.
Non-waiver – Company must negotiate over changes to healthcare during the term of the agreement.
Successorship – Current nationwide contract language applies to all facilities, including Brewton.
January 11, 2008
