MacMillan Bathurst corrugated plant survives free trade fears with recession proof domestic markets © Local 1000 member Earl Chaput, plant chairman and a former local union financial secretary, measures up a die for corrugated box. n I.W.A. CANADA Local 1000, one of the few industries that has not been hit by downturns in the Canadian economy over the past 5-6 years has been the manufacture of corrugated con- tainers. In the community of Pem- broke, about a 1-1/2 hour drive north of Ottawa, work at the MacMillan Bathurst Inc. (MBI) corrugated con- tainer plant has been steady and re- cession proof, Despite technological upgrading the plant has maintained employment lev- els of between 130-135 union mem- bers since 1990. The plant operates on a2 and 3 shift basis, five days a week. It all depends on what machines are needed to keep up with the orders. “Work up here has been good for just about everybody,” says Earl Cha- put, plant chairman and a former local Financial Secretary. “Most of our members work year round and some have only been laid off 2-3 weeks dur- ing the past couple of years.” The Pembroke operation is one of 12 MBI plants across the country. It is a plant that specializes in small spe- cialty orders and has a reputation of high quality production while meeting tight deadlines. Brother Chaput says that workers were worried when the Free Trade Agreement between Canada and the United States went into effect in early 1989. They thought the competition from low wage operators in the Unit- ed States would put pressure on Cana- dian jobs. Some of the work has shifted south of the line, says Chaput. But not enough to cause a downturn in hours worked. The Pembroke operation used to roduce containers for numerous ‘kk and Decker products including lawn movers. Now it gets very few or- ders from that client as most of Black and Decker’s production has moved to the United States or Mexico. Likewise, the plant used to produce containers for such Japanese parent increases at the MBI St. Laurent plant in Montreal. “If we had the Molson contract at this plant, we would be operating 24 hours a day, 7 days a week,” says Cha- put. One of the more important develop- ments in recent years has been the plant’s compliance with new regula- tions in accordance with hygienic standards set by the American Insti- tute of Bakeries (AJB). In the summer of 1995 the plant passed an AIB examination which Saw an increase in preventative hy- gienic measures put into place for the production of food containers - which constitute much of MBI's business. New measures taken include the control of rodents by the placement of an 18” perimeter around the inside of the plant floor. Blue lights have been put into place to prevent attraction of mosquitoes, screens have been put on all doors and all entrances must be closed to provide additional insulation against insects and rodents. The new standards have helped the plant secure new business. In addi- tion, MBI has adopted ISO 9000 stan- dards, which are internationally rec- ognized measures to ensure quality control and the elimination of errors during the production process. ISO 9000 is a series of recognized standards adopted by the European Economic Community that ensure that the operation is professionally evaluated. MBI is using the system in all of its plants in Canada. By June of 1992, all plants had adopted to the ISO 9000 system for its production. The company has other plants in Ontario (Etobicoke, Guelph, Rexdale, and Whitby), Manitoba (Winnipeg), Alber- ta (Edmonton and Calgary), B.C. (New Westminster), Saskatchewan (Regina), and Quebec (St. Laurent and Mt. Royal). The company has now met the ISO 9001 at all of its operations. Apart from ISO 9000, the company has introduced some new technologi- cal changes which have improved pro- duction while not having an overall impact on the number of jobs. About two years ago the die designs began to be sent in on computer disc to Image Pack, a Montreal subsidiary of MBI. There the dies are made with a new formula polymer that lasts longer. A new flexo rotary die-cutter was put in the plant almost two years ago which doubled the production capaci- ty in that department. The machine die-cuts and scores corrugated sheets. It requires an operator, a feeder and one or two offbearers, depending on the product line. The workers are currently in the second year of a five year collective agreement, which has become the standard for the industry in central Canada. “We would have preferred a three year deal but it wasn’t in the cards,” says Brother Chaput. The workers got wage increases of 0, 1, 1-1/2, 2 and 3 percent with cash bonuses of $400 and $300 in the first. and second years. Top pay rate is currently over $20/hr. for electricians. The base rate for labourers is $16.28/hr. Local 1000 Financial Secretary and Business Agent Mike McCarter says that the most welcomed improve- ments to the current contract are in the areas of the pension. The I.W.A. negotiated early retirement at age 58 with full bridging. “This meant a lot to the people who are going to retire in the next five Despite technological upgrading the plant has maintained employment levels since 1990 years,” says Brother McCarter. “There are people who have not been in the new pension formula long enough to benefit from it.” The union negotiated a catch-all clause which stipulates that a retiring member can’t receive even one cent less than the old plan would have pro- vided in any event. Over the past two collective agree- ments the union has increased-past service benefits by 75%. The new pen- sion plan, started in 1986, will pay full benefits after 20 years of being in the new plan. Because of the early retirement im- provements, McCarter says that if all eligible workers retire at age 58 over the term of the collective agreement, 37 positions will be vacated, creating new openings for younger people. The I.W.A. has a long history at the operation. Originally the predecessor company (Pembroke Shook Mills) op- erated at a site across the street from the current plant, where it produced wood packing boxes. Then it moved to the current site in 1954 and grew in size, still producing wood boxes until 1962 at the old site, when the demand for corrugated took over. The operation was its own individ- ual I.W.A. local prior to 1959 when the union organized it into its newfound geographical structure. In 1999 Local 1000 will be celebrat- ing its 40th anniversary. LUMBERWORKER/DECEMBER 1996/17