Friday, July 03, 2009
Contract voted in at Covington's MeadWestvaco paper mill
A long-running dispute between rival unions still leaves questions over the agreement's validity.
The Roanoke Times
File Jan. A contract between MeadWestvaco and its Covington workers had expired in late 2006, and negotiations since then have been thorny.
The latest from The Ticker blog
After two and a half years without a new contract, an unspecified number of union members at MeadWestvaco's paper mill in Covington voted Wednesday to approve a newly negotiated six-year labor agreement with the company.
The contract took effect Wednesday.
About 84 percent of those voting approved the contract, said Bobby Harrison, president of United Steelworkers Local 8-675. Both Harrison and Luis Mendoza, a USW district representative, would not disclose the vote tally.
Frequently bitter conflict, both between union negotiators and the Richmond-based company and between two rival unions, preceded Wednesday's vote. And it seems conflict is destined to continue at the sprawling and routinely odoriferous paper mill, which is the largest employer and taxpayer for both Covington and Alleghany County.
Both USW Local 8-675 and Covington Paperworkers Union Local 675 have claimed to represent the majority of about 950 union members at the mill. These workers were once all members of USW.
In March 2008, CPU won an election by a narrow margin and appeared to have earned the right to represent the workers. But following objections by USW, the National Labor Relations Board ordered a new election, which has not occurred pending an appeal to the board by CPU.
USW has remained the designated bargaining unit, and its officials negotiated the new agreement with MeadWestvaco.
Becky Johnson, a MeadWestvaco spokeswoman, announced the company's reaction to the contract approval.
"We are pleased we were able to reach an agreement that provides significant improvements in wages and benefits while also helping the Covington mill remain competitive in the global marketplace," Johnson said.
Harrison said the new contract helps workers. He said gains included wage increases and pension increases for eligible workers and provisions for a union created health care plan and health care clinic that could help control medical costs.
'A devastating day'
But Roy Hall, president of CPU Local 675, said Thursday he felt sick about the agreement, which he says granted key concessions to MeadWestvaco and suggests a troubling coziness between the company and USW. Hall was once president of USW Local 8-675 and in that role participated in previous contract negotiations.
"This marks a devastating day in the history of the union in Covington," Hall said. "It's almost like you have a company union now."
Hall criticized contract terms that establish a new attendance policy, a "company-friendly" approach to seniority and affirmation of a "multi-craft" structure implemented earlier this year. Related provisions hold that separate maintenance trades in the mill will cross-train to perform additional tasks. For example, a welder can be directed to also tackle pipe fitter tasks, Hall said.
Harrison said the cross-training agreement helps MeadWestvaco operate more efficiently, provides training in new, marketable skills at the company's expense and helps keep independent contractors out of the plant.
In turn, Hall said the new attendance policy and the multi-craft provision will "put people out on the street."
Health care
Hall also expressed skepticism about the ability to establish a new, USW-run health care plan and clinic in the region. The clinic would need to serve about 950 union members and their families, as well as retirees, he said.
Johnson said MeadWestvaco would contribute to a trust fund for the operation of the union-sponsored health care plan and clinic.
Harrison countered that USW has already secured a facility for a clinic and intends to have it and a health care plan up and running by the end of 2009. If not operating by then, union members' health care will be covered by MeadWestvaco's plan -- an outcome Hall said CPU opposed.
The previous contract expired in December 2006. Union members have continued to work under the terms of that agreement. Until last month, no contract negotiations had occurred since August 2007.
Although USW declined to release Wednesday's vote tally, Hall said a reliable source said the count was 327 for the new contract and 63 opposed.
"He knows something I don't know," said Harrison, who said Thursday morning that he had not yet seen the numbers.
If Hall's numbers are accurate, about 34 percent of the union membership voted to approve the agreement. He said the low turnout means that the majority of the 950 union workers who are members either of USW or CPU did not vote Wednesday. Hall estimates about 66 percent of union members at the plant are loyal to CPU.
Another vote?
If CPU has a majority, said Harrison, why oppose holding another vote, as directed by the National Labor Relations Board, to settle once and for all which union should represent the workers? He challenged Hall to withdraw the related appeal and to participate in a new election.
Hall scoffed.
"We've already proved three times that we're the majority," he said, via a vote to break ties with USW, through a membership drive and the election in March 2008.
USW has objected each time, he said.
"What good would a fourth time do?" he said. "We'd beat them again, they'd file a fourth objection and we'd start all over."
Like Harrison, Mendoza said the new contract is a good agreement. Among other things, it provides for a wage increase of 16.1 percent over six years and a 4.25 percent increase at ratification, an increase in pension payments to retirees who elect to participate in a "special enhanced retirement window" by Sept. 30 and the establishment of the health care plan and clinic.
Johnson said most hourly workers have not received wage and benefit improvements since December 2005.
CPU broke away from USW in October 2007 after charging that negotiators from United Steelworkers International were not representing workers' best interests. Later, Leo Gerard, president of USW International, acknowledged that communications broke down during contract talks.
Hall believes the National Labor Relations Board will grant CPU's appeal and make it the workers' bargaining unit. If that happens, he said, the new contract will be null and void.
He acknowledged, however, that the labor board is plowing through a large backlog of cases.
Johnson said it is impossible to predict how and when the National Labor Relations Board will rule.
"We will address any issues arising from any future ruling at that time," she said.
About 1,500 people work in mill operations in Covington and Alleghany County.
