United Steelworkers: Members OK 4-Year Labor Pact With International Paper

[Omaha Steve]

http://money.cnn.com/news/newsfeeds/articles/djf500/200804251425DOWJONESDJONLINE000890_FORTUNE5.htm

April 25, 2008: 02:25 PM EST

DOW JONES NEWSWIRES

The United Steelworkers Union said its members ratified a four-year labor agreement with International Paper Co. (IP).

A representative of the Memphis paper and forest products company couldn't immediately be reached for comment.

The master economic and security agreement calls for an increase of 8% in wages and the monthly service multiplier for pensions will rise $4 over the life of the agreement.

Also covered in the deal are health insurance benefits, job security issues and joint labor-management relations.

The union said that the deal, which covers 32 converting facilities that take paper and make it into paperboard, cardboard and other paper products, means all union-represented International Paper facilities are covered by the framework agreement ratified last summer.

Local issues and noneconomic bargaining will be handled with local unions, and the local unions will still have their own contract expiration dates. However, neither party is permitted to engage in a work stoppage during the term of the master and subsequent renewal agreements.

-Adam O. Manzor; 201-938-5400; [e-mail]