RUMFORD — Ron Hemingway is convinced that a tariff placed on coated paper coming from China and Indonesia a few months ago is a major factor in the upswing in employment at the local NewPage mill.
Recording secretary for Local 900, Hemingway traveled with union Vice President Chris Dickson to Washington, D.C., on Wednesday to support making the tariffs permanent.
“This has definitely helped to cut Chinese and Indonesian imports by two-thirds,” he said Thursday afternoon in a phone interview from outside the International Trade Commission hearing room.
The ITC is scheduled to make a decision on Oct. 19. The U.S. Department of Commerce is expected to decide on the matter next week, according to a statement from the office of U.S. Rep. Michael Michaud, D-Maine.
Maine’s congressional delegation, including Michaud, Democratic Rep. Chellie Pingree and Republican Sens. Olympia Snowe and Susan Collins, testified at Thursday’s hearings. All outlined what they believe to be unfair trade practices that give Chinese and Indonesian imports an advantage in the market.
“If these violations are not addressed, Maine’s proud tradition of producing pulp and paper could be lost to foreign manufacturers who have benefited from unfair government subsidies and assistance,” Collins testified.
In addition to foreign subsidies, the paper industry and unions say the lack of environmental and labor law in the two foreign countries present an unfair advantage to U.S. producers who must adhere to strict regulations.
Maine Fair Trade Campaign organizer Sarah Bigney said in a statement that dumping cheap paper on the market has “significantly damaged the Maine paper industry and will continue to cost Maine jobs if not addressed.”
Leo Girard, president of United Steelworkers International, said the market for U.S. coated sheet products declined by 15 percent in 2009, while the demand for similar paper from China increased by 9 percent.
United Steelworkers International is the labor union that represents NewPage employees in Rumford.
Hemingway and Dickson were sent to Washington from the Rumford mill because they have been active in a mill group known as Dumping Angels. That committee worked to get the word out to area towns about the unfair impact of foreign paper on local production.
The union paid for one to go and the local mill paid for the other.
About 100 employees were laid off from their mill jobs late last year because of the poor market caused by the cheap imports, Hemingway said. Since the tariff was temporarily placed on such goods, all 100 have been called back. Those who did not want to return to the mill were replaced by new employees.
Local 900 President Matt Bean said about 725 people work at the local mill.
“Anything to do with paper dumping directly affects the paper mill here,” he said.
Local mill spokeswoman Janet Hall said the mill fully supports the efforts to make an uneven playing field more fair for local companies.
Six representatives from the Sappi mill in Skowhegan also traveled to Washington for the testimony.
Hemingway said the process was enlightening.
“The delegation is standing up for our industry,” he said. “It’s a nonpartisan issue.”
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