EVERETT – As its unionized workers threaten to strike after eight months of contract talks, Kimberly-Clark Corp. is preparing to keep the local pulp and paper mill operating, partly by shifting production to Brazil.
Other contingency plans also are in place, said Scott Helker, manager of the Everett mill, which makes bathroom tissue and other paper products.
“We have plans in place to protect our essential customers and keep the critical parts of the operation running,” he said.
At the top of the union’s list of concerns is the company’s plan to cut wages in the mill’s distribution and materials handling departments.
“We have to take a stand against that, or they’re not going to stop,” said John Minor, president of the Association of Western Pulp &Paper Workers Local 183.
Union officials say an unfair labor practices strike against the mill is possible. That comes after more than 81 percent of voting union members rejected Kimberly-Clark’s latest offer last week.
Unlike a more traditional strike, which requires advance notice, a labor practices strike can start without warning.
“We will not advertise a strike date or time. If we go on strike, the company will know when there are pickets at the gates,” Frank Prochaska, the union’s regional representative, said in a written statement.
The primary advantage of such a strike is that the company can’t hire permanent replacement workers, Minor said.
He added that the union has 18 labor practice complaints pending with the National Labor Relations Board.
Negotiations for a new contract covering more than 700 union members at the Everett mill began in the spring, and the old agreement expired in June. In September, 94 percent of voting union members authorized a strike.
The company’s proposed six-year contract included raises totaling 11 percent, plus two lump-sum payments per employee. In 2004, with overtime, the average wage for hourly employees was $67,000.
Additionally, pensions will be boosted by nearly 25 percent.
But wages for future employees will be cut – by more than 20 percent, according to union estimates – in the mill’s distribution and materials handling departments. Helker said jobs in that area will be given to entry-level employees in order to reduce costs.
He said existing employees there will be offered high-wage jobs in other areas of the mill.
Union members say the targeted wage cuts are unacceptable, as are changes to employee health plan options. Kimberly-Clark wants to put employees on the same health plan as workers at other mills, which would be more affordable for the company.
However, doing that would take the health benefits out of the collective bargaining process in the future, Minor said. Workers are willing to pay more out of pocket to keep their health benefits under their control.
“We don’t have a lot of faith and trust in the company,” he said.
At the same time as the labor dispute drags on, Kimberly-Clark is restructuring its worldwide operations and plans to close up to 20 plants. Helker said he understands resistance to the proposed changes, but they are necessary.
“All of these changes are typical of how others in the industry have adapted, and none are out of line with other Kimberly-Clark mills or other companies in our industry,” Helker said.
Both sides talked Tuesday, and more negotiations are planned. Despite the mill’s contingency planning, Helker said he holds out hope for a resolution.
Minor said he agrees that a strike would be an unfortunate way to get action. But it’s an option the union may need to use, he said.
The last strike at the mill was in 1978.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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