NEWS

Journal Tribune Weekend

By Catherine Sengel, Staff Writer

York County, ME., Portland Real Estate Developer Michael Liberty may be among several parties negotiating an employee buyout of the Biddeford Textile Company.

The Portland Businessman has attended three meetings held by the Union of Needletrades, Industrial and Textile Employees over the last two weeks and an article in the March 9 edition of the New York Times said Liberty is interested in "a large stake in a new company that would buy the plant from Sunbeam."

Beryl Wolfe, a spokesperson for Liberty, said the developer is not able to comment on his in role or developments in the venture.

Representatives of Unite said American Capital Strategies, an investment bank specializing in employee stock ownership plans, have been actively negotiating with Biddeford Textile's parent company, Sunbeam, for a sale. An outcome is expected in the near future.

Workers have been notified that a meeting will be held on Sunday at 9 a.m. at the Biddeford City Hall to discuss the proposal.

According to some, getting worker support for a buyout is the next hurdle the union faces.

Though specifics of the deal have yet to be released, talks around the plant about possible wage cuts has some workers concerned.

Under terms of similar employee shareholder plans, workers are often asked to take cuts in pay and benefits, two of the typically largest expenses to a company.

Maurice R. Parent, an overhauler in the carding department at the mill, said he and other workers are worried about setbacks employees may suffer as their contribution to the deal.

"I've worked here 19 years and gotten a raise every year below the national inflation rate and now they may want me to go back a couple of years on the pay scale," Parent said.

Workers have yet to be officially told of the details of the proposed buyout, but rumors worry many, he added.

Michael Cavanaugh, assistant manager of the union's regional board, said if the buyout goes through and the company is successful, workers stand to gain much more as shareholders in a profitable business that what they're asked to sacrifice up front.

"This deal may have the potential to make them lots of money in the long run, but that's not going to help the tomorrow when they have to pay the rent," Parent said. "A lot of us are living from week to week."

Workers will have the opportunity to voice their opinions and vote before a final deal can be made with Sunbeam.

They may not be able to change the percentage of cuts negotiators need in order to make the sale work, Parent said, but they could affect where the cuts are made.

"If they don't agree with what they hear all they have to do is make a motion, second it and bring it to the floor for discussion by the entire (union) local," he said.Jane Linscott, a worker in the blending department at the mill for the past five years, said talk about job losses have made workers lose faith in their abilities. Linscott said workers could;d vote in favor of any offer rather than risk unemployment.

"I feel like at the top of the pecking order have been making decisions for me," Linscott said. "We have to weigh everything and not let fear and emotion be a factor in our vote. We have to vote carefully and not out of desperation. People should pray, have faith and be informed no matter what."

Cavanaugh said he understands employee concerns, but the union officials and investors have had to move quickly to compete with other potential buyers ready to move machinery out of town and close operations.

"From the beginning all we've wanted is to give workers a measure of control," Cavanaugh said. "If this goes through they'll be worker owners. The value of that will be dependent upon the success of the company and we have good reason to think that will be very successful."

Parent said he feels more optimistic about the venture after reviewing information about American Capital Strategies' history that includes engineering employee buyouts from companies like Northwestern Airlines.

"They could be very good for us," Parent said.