In a Canton City Hall courtroom crowded with workers and media, Champion Intl. Corp. entered into an agreement with employees of Champion's Dairy Pak division--a deal transferring ownership under an Employee Stock Ownership Plan (ESOP).

The Canton employees are not alone in the ESOP. All of Champion's Dairy Pak division, comprised of five locations, is part of the sale. The four other sites are PACE-organized: Local 5-673 in Olmsted Falls, Ohio; Local 7-761 in Clinton, Iowa, Local 3-794 in Athens, Ga.; and Local 4-1706 in Ft. Worth, Texas. The fifth location is in Morristown, N.J., where workers are represented by UAW Local 260.

"This is a great event for our membership," said PACE Region Four ViCe President Bob Smith. "In bringing about this buyout, the workers have not only saved their jobs, but they have preserved the community that has made the mill the center of their town.

"More than jobs at Champion were riding on this sale; lots of small businesses rely on this mill to keep operating while sustaining a healthy economy.

"Also, I thank North Carolina Governor Jim Hunt and Secretary of Commerce Rick Carlisle who helped make this deal possible."

At a press conference following the signing, PACE Executive Assistant to the President Leeann Anderson praised the transition team. She said, "On behalf of your 320,000 brothers and sisters at PACE, I want to say congratulations to the Local 2-507 members who had the courage to lead the charge on this buyout and commit themselves to this task for the past year and a half"

Transition Team Chairman Alton Higgins delighted the crowd when be outlined the year-and-a-half struggle to purchase the mill. "Eighteen months ago I didn't know how to spell fiduciary responsibility, now I'm in the middle of it," he said "We hope this is the start and a new beginning investment in our futures." David Shapiro, representing KPS Special Situations Fund of New York--the major financial backer in the ESOP--said of the transition team: "They had a vision and they pursued it doggedly. Employee-ownership transitions are not easily put together, but this committee never let up."

PACE Region Four Representative Harold Huffman highly praised both the transition team and the membership of Local 2-507. "They were willing to make sacrifices, yet they never lost sight of their goals," he said. "This mill has been here since 1908, and the workers were determined to keep it in operation; Some of these local union members are third and fourth generation employees."

During the question and answer period, a reporter asked if the employees could handle running the mill. Kenny Sutton, treasurer of the Transition Team, responded, "The best argument for this ESOP is Champion put the prospectus out and we were the only ones who showed up at door. We have persevered through good times and bad. We think we can be terrific mill owners!"

Employees at the five facilities voted a 60 percent affirmation of the ESOP at the end of April. Although the name of the new company is still not finalized, Smith reported it might be called Blue Ridge Paper & Packaging Inc.

The PACESetter, vol.1 no.3, May 1999