12/03/2015
From: USW Paper - Cenveo
Date: November 30, 2015 at 11:20:26 CST
To: "Smith, Michael - Local 9-978"
Subject: Monday Morning Minute - USW Paper Sector Monday, November 30, 2015
Reply-To: USW Paper
Monday Morning Minute - USW Paper Sector
Monday, November 30, 2015
Union Work – Collective Bargaining, Organizing, Arbitration, Worker Rights, Community Work, Political Work, Labor History
USW Director of Rapid Response Kim Miller talks about America's Trade Challenges - Copy and paste the following link into your browser to view the entire interview: http://www.usw.org/news/media-center/articles/2015/usw-director-of-rapid-response-kim-miller-talks-about-trade-challenges #.VlM4TFc_QDM.facebook
Labor Quiz - President Richard M. Nixon, whose resignation was forced by the Watergate scandal, maintained an “Enemies List” of political opponents he wanted to “screw” because of their opposition to his administration. Which prominent labor leader was included in the original list of 20 names? George Meany; James R. Hoffa; Leonard Woodcock; A. Philip Randolph. Check next week’s issue for the answer.
Safety
Two Workers Killer at a Saigon Paper Mill in Vietnam - A steam boiler exploded on November 20, 2015 at the My Xuan Paper Plant in the southern province of Ba Ria – Vung Tau, killing the head of the work shift, who was standing close to the boiler, and another worker standing near the boiler’s fuel supply area. The explosion also caused damage to the surrounding areas and set off fires. Authorities were immediately informed of the accident and the victims were rushed to the hospital, but died shortly after. Another worker suffered minor injuries
Initial investigations by the local police and relevant authorities said the incident occurred around 12:30am when a group of workers from the Nam Thanh Nguyen Ltd. Co. were directly operating the Biomass steam boiler system. The company is in charge of operating the boiler system of the paper plant which is owned by Sai Gon Paper Joint-Stock Co. located in My Xuan A Industrial Park, Tan Thanh District. The Biomass system consists of three boilers with a total working capacity of between 25 and 30 tonnes. The fire was extinguished at 2.30am. Further investigation is on to identify the cause of the explosion cause.
Industry Update
Tissue Market in a Dynamic Phase According to Analysts – In the first 9 months of the year, total tissue consumption showed demand growth of 2.8% from the same period in 2014. Growth in the US has been surprisingly strong especially in the Away from Home sector (AfH) and has been the main driver in the increase. A decline in gasoline prices and unemployment rates has influenced growth in the AfH sector, while declining exports have effected total tissue consumption. Compared to a year earlier, gasoline prices were 43% lower for regular in July 2015, leading to an increase in traveling, eating out and other AfH activities. Unemployment’s continued decrease means that more people are working in offices, factories, service industries, etc. and has a direct effect on tissue consumption. The last three months of the year will decide where total growth will be for the year as a whole, but analysts say that it is likely that total consumption will record growth between 2%-2.5%, if not more. This year will most likely show a jump in growth rates to those that were typical 10-15 years ago but haven't been seen since the 2009 recession.
The positive demand-driven trend in the US tissue sector has encouraged tissue companies to expand. The most important recent movement came on October 13 when SCA and Wausau Paper Corporation announced that SCA will acquire Wausau Paper for total consideration of US$513 million in cash. Most recently, Resolute Forest Products announced the acquisition of Atlas Paper Holdings, Inc., a manufacturer of AH and AfH tissue products, including recycled and virgin paper grades, with a total capacity of 65,000 short tons. Through the acquisition of Atlas, Resolute will secure an immediate position in the North American consumer tissue market, capturing synergies by integrating forward its US market pulp assets and giving the company the immediate tissue industry experience needed for the preparation of the Calhoun tissue project start-up in early 2017.
These competitive moves will change the relative competitive positions in the US tissue industry, particularly in the AfH sector. SCA would increase its market share in the US AfH tissue business from its current 20% to 27% after the completion of the Wausau Paper deal (Figure 1). The deals currently in the making would also put Resolute on the list of the top ten players.
Graphic Packaging – New CEO/President Appointed - On November 19, 2015, Graphic Packaging announced the appointment of Michael P. Doss as President and Chief Executive Officer, effective January 1, 2016. He succeeds David Scheible, who will preside as Chairman of the Board through the May 25, 2016 Annual Meeting of Stockholders. Doss was previously appointed Chief Operating Officer in November 2013 and has held positions of commercial and operational leadership during his 25-year career with the company.
USW Local 4-396 – Lincoln Paper and Tissue LLC – Lincoln, ME – Mill Draws Top Bid from Firm that Doesn’t Make Paper – Boston-based liquidation firm, Gordon Brothers, was the top bidder at Lincoln Paper & Tissue’s Chapter 11 bankruptcy auction on November 17, 2015. At $5.95 million, the final bid was about $650,000 higher than the starting bid of $5.3 million, from LP Acquisitions. Lincoln’s attorney said that the firm could resell the mill to a company seeking to make tissue paper, but some are not as optimistic because none of the eligible bidders planned to continue operating the mill. The proposal does not include mill-owned land, and will go before a bankruptcy judge for final approval.
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Kim Miller, Director of Rapid Response for the United Steelworkers Union talks with Joe Delano from KDKA's Sunday Business program about the trade challenges facing the American steel industry and manufacturing.
