Workers union resist sale of Verso's paper mill to scrap metal company

LEWISTON (Scrap Monster): The Bucksport chapter of the International Association of Machinists and Aerospace Workers has filed a suit against the proposed sale of Verso Paper Corp’s Bucksport mill to AIM Development (USA) LLC- a scrap metal company. The two entities are reported to have entered into a purchase agreement on December 5^th.

The union represents 59 mechanics at the paper mill. The workers along with five officers of the union filed a complaint stating that the proposed deal would lead to loss of jobs. Instead, it demanded that the company publicize its sell offer so that any interested party could buy it. This in turn would keep the mill operating, thereby preventing job losses.

Earlier in October, Verso had announced that it plans to close the paper mill by end-December this year, mainly due to rising energy costs and declining demand for specialty publishing paper made at the mill. More than 500 employees’ jobs were at risk. It was widely believed that another potential buyer will take over the mill. However, Verso announced last week that it has decided to sell the mill along with the attached power plant to AIM Development LLC-US subsidiary of Montreal based scrap recycling firm. The lawsuit alleges that the buyer intends to demolish the mill for scrap metal.

The workers union has sought an injunction that would prevent Verso from selling the mill to AIM Development LLC or any other salvage company. It also demands payment of vacation and severance pay to all employees by Jan 8^th, 2015.

Earlier in 2013, Verso had sold their Sartell, Minnesota facility to AIM. Most of the buildings except the power plant facilities were demolished.