Union gets 3-year deal with Sappi

The largest private sector union in the city of Cloquet ratified a new contract last week with the Sappi paper mill.

United Steelworkers Local 1163 completed a three-year deal with the company that includes a 10.5 percent pay increase over the life of the deal, along with improved health care coverage. Union president Jay Arntson called it “the best offer” the union has seen from Sappi ownership. The deal covers 384 members in the production departments.

“Since Sappi owned the mill we haven’t seen an offer this good,” Arntson said.

Pay increases amount to 4 percent in year one, 3.5 percent in year two and 3 percent in the final year. Health care went back to 100 percent coverage after employees meet what is a “high deductible,” Arntson said.

“It brings a sense of security for a lot of folks that weren’t sure what this outcome could have looked like,” Arntson said. “It’s easy to say we improved our health care plan from where it was.”

He was particularly pleased the deal featured the highest average wage increase in the industry.

“It’s one of the first times we’ve ended up with the top highest average wage increase across the paper sector,” Arntson said.

Members overwhelmingly voted against the company’s first offer, and Arntson declined to say how many other rounds of votes were taken until the ratification vote.

Sappi leadership continues to negotiate with members of the smaller maintenance union within the mill, so managing director Tom Radovich declined to comment on the deal with United Steelworkers.

In general, the Steelworkers were pleased with the outcome, Arntson said.

“There’s a fair amount of people who are happy,” Arntson said. “Obviously [some] people were disappointed and wanted to see more. A lot of people wanted to see us get caught up with the cost of living. But with everything going on in the economy, the company just wasn’t going to give it all in one shot.”

While pockets of the union asked about taking a strike vote at different points during the process, Arntson said it never came to that.

“Where we were with bargaining,” he said, “we weren’t there.”