A new four-year contract for workers at Rumford's NewPage paper mill has been ratified, a move expected to enhance the company's chances of emerging from Chapter 11 bankruptcy.
The contract, ratified Friday morning, sets terms for wages, pensions, health insurance and other benefits and gives workers additional security if the company's facilities are sold, according to a release from the United Steelworkers Union.
NewPage, based in Ohio, employs 4,500 workers, including about 700 at the Rumford mill. It filed for bankruptcy protection in September, six years after being bought by private equity firm Cerebus Capital Management for $2.3 billion. The new agreement will be effective upon court approval and NewPage's emergence from bankruptcy reorganization, according to the release.
"The resulting deal restructures collective bargaining agreements in a fair manner, and also provides our members with enhanced security for the future, while providing a period of stability to the new company that emerges from bankruptcy to improve, invest and grow the business," said USW District 2 Director Michael Bolton, who chairs the USW NewPage Council of Local Unions, in the release.
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