P.H. Glatfelter Union Ratifies Early Retirement Program

P. H. Glatfelter (Spring Grove, PA) reports that the United Paperworkers' International Union Local 1971 has ratified a supplement to its contract, providing an enhanced early retirement opportunity for certain hourly employees as well as changes in the wage progression program for hourly employees hired in the future.

Last week the company had announced plans to cut 125 jobs at its Ecusta mill near Pisgah Forest, NC, pending discussions with the union. The planned cutbacks, involving both salaried and some 70 hourly employees, was the result of fundamental changes in the tobacco markets into which Glatfelter sells its tobacco papers, according to company statements. The voluntary early retirement enhancements for salaried employees had already been approved and implemented.

Elimination of the 125 jobs will reduce the company's annual payroll and benefits costs for its salaried and hourly workforce by approximately $7 million. By implementing the early retirement programs, the Company will incur, likely in the third quarter, a one-time expense of approximately $6 million. The estimated one-time expense assumes that participation levels in the early retirement programs will coincide with the planned job reductions.

"I was pleased with the support for this reorganization plan", said Robert Lawrence, VP and GM of the Ecusta Div. "By making the sacrifices that are required in the current business climate, management and labor have demonstrated a shared commitment to the future success of the Ecusta mill."