03/28/2006

Georgia-Pacific, union talks continue in aftermath of closure

Some workers are finding jobs, but at lower pay

BY SHERI McWHIRTER

sherimcwhirter@hotmail.com

GAYLORD — Union leaders will count down the days over the next week as they await contract closure negotiations with Georgia-Pacific.

A particle board plant the company owned since 1987 employed 210 workers in Gaylord and was suddenly and permanently closed three weeks ago. Many employees are left with a looming financial void, once two months of federally-mandated severance pay runs out.

"Skilled workers are finding jobs. There are downstate job options," said Terry Jans, president of the woodworking division of the International Association of Machinists and Aerospace Workers, Local 166 in Gaylord. "The unskilled workers are out there scrambling for any job they can find. They're finding jobs, but there's definitely going to be a change in the pay they will get."

Most factory employees earned between $15 and $20 per hour, plus benefits.

Jans said medical insurance for union members likely will last at least through July, while vacation pay and a final severance package remains under negotiation.

Union member Jim Nowak of Elmira said he's anxious to see how contract talks will proceed now that Georgia-Pacific is no longer a publicly-held company. It was purchased in December by Koch Industries, making it the largest privately-owned company in the world.

Georgia-Pacific reported revenues in excess of $20 billion in 2004.

"Our commitment is to make sure our employees are treated fairly," said spokesman James C. Malone.

Malone said the plant closure was not due to any failure on the part of employees, but because of adverse economic forces, such as high energy costs and a market saturated by imported products. He also said union leaders would on April 4 enter normal plant closure negotiations with Georgia-Pacific officials, not executives from Koch Industries.

Meanwhile, many laid-off workers have made good use of services at the Michigan Works office in Gaylord, said program director Laura Budreau.