Unionized workers at Packaging Corporation of America’s paper products operation in International Falls, Minnesota, have ratified a new four-year collective agreement delivering significant wage increases and strengthened benefits, in one of the more significant labor settlements in the North American paper sector this year.
The agreement, approved after two weeks of negotiations, covers approximately 760 members of Local W33 alongside workers represented by four additional unions at the facility. It includes a 12.5% general wage increase over the contract term, while maintaining existing health insurance benefits without changes.
Beyond compensation, the deal introduces improvements to scheduling provisions, grievance procedures and paid personal time — areas that have become increasingly important in labor negotiations across industrial sectors.
Union representatives said coordination among multiple unions played a key role in securing the agreement. The Joint Union Committee, which included IAM, IBEW, SEIU, IUOE and Teamsters representatives, led a unified bargaining strategy supported by months of preparation, including member surveys and formal negotiation training.
“This agreement reflects what coordinated, multi-union bargaining can achieve,” said Sam Cicinelli, IAM Midwest Territory General Vice President, adding that the gains establish a benchmark for similar facilities in the region.
The contract is retroactive to May 1, 2026 and runs through April 30, 2030. Industry observers suggest the agreement could influence upcoming negotiations in the pulp and paper sector, where labor retention and cost pressures remain ongoing concerns.
The IAM, which represents approximately 600,000 members across North America, described the agreement as one of the strongest recently achieved in the paper industry, saying it could serve as a reference point for future bargaining rounds.
Packaging Corporation of America is a major North American producer of containerboard, corrugated packaging and paper products. Its International Falls operation is one of the company’s key paper and packaging facilities in the U.S. Midwest.
