International Paper 2015 Annual Report Download - page 22

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have on the Company’s operations. Further state
measures are under substantive review as they
respond to EPA’s 2015 Clean Power Plan and develop
an implementation plan over the next 1 to 3 years. The
CPP allows significant flexibility in how states develop
their plans, so the uncertainty regarding potential
impacts will remain high until more specificity is reached
and individual power companies develop their
compliance strategies.
Summary
Regulation of GHGs continues to evolve in various
countries in which we do business. While it is likely that
there will be increased governmental action regarding
GHGs and climate change, any material impact to the
company is not likely to occur before 2020 and at this
time it is not reasonably possible to estimate Company
costs of compliance with rules that have not yet been
adopted or implemented and may not be adopted or
implemented in the future. In addition to possible direct
impacts, future legislation and regulation could have
indirect impacts on International Paper, such as higher
prices for transportation, energy and other inputs, as
well as more protracted air permitting processes,
causing delays and higher costs to implement capital
projects. International Paper has controls and
procedures in place to stay informed about
developments concerning possible climate change
legislation and regulation in the U.S. and in other
countries where we operate. We regularly assess
whether such legislation or regulation may have a
material effect on the Company, its operations or
financial condition, and whether we have any related
disclosure obligations.
Additional information regarding climate change and
International Paper is available in our Sustainability
Report found at http://www.internationalpaper.com/US/
EN/Company/Sustainability/SustainabilityReport.html,
though this information is not incorporated by reference
into this Form 10-K and should not be considered part
of this or any other report that we file with or furnish to
the SEC.
EMPLOYEES
As of December 31, 2015, we have approximately
56,000 employees, nearly 34,000 of whom are located
in the United States. Of the U.S. employees,
approximately 26,000 are hourly, with unions
representing approximately 14,000 employees.
Approximately 11,000 of this number are represented
by the United Steelworkers union (USW).
International Paper, the USW, and several other unions
have entered into two master agreements covering
various mills and converting facilities. These master
agreements cover several specific items, including
wages, select benefit programs, successorship,
employment security, and health and safety. Individual
facilities continue to have local agreements for other
subjects not covered by the master agreements. If local
facility agreements are not successfully negotiated at
the time of expiration, under the terms of the master
agreements the local contracts will automatically renew
with the same terms in effect. The mill master
agreement covers 19 of our U.S. pulp, paper, and
packaging mills; the converting agreement includes 61
of our converting facilities. In addition, International
Paper is party to a master agreement with District
Council 2, International Brotherhood of Teamsters,
covering 13 additional converting facilities.
During 2015, local labor agreements were negotiated
at five mills and 13 converting facilities. In 2016, local
labor agreements are scheduled to be negotiated at 29
facilities, including four mills and 25 converting facilities.
26 of these agreements will automatically renew under
the terms of the applicable master agreement if new
agreements are not reached.
EXECUTIVE OFFICERS OF THE REGISTRANT
Mark S. Sutton, 54, chairman (since January 1, 2015)
& chief executive officer (since November 1, 2014).
Mr. Sutton previously served as president & chief
operating officer from June 1, 2014 to October 31,
2014, senior vice president - industrial packaging from
November 2011 to May 31, 2014, senior vice
president - printing and communications papers of the
Americas from 2010 until 2011, senior vice president
- supply chain from 2008 to 2009, vice president -
supply chain from 2007 until 2008, and vice president
- strategic planning from 2005 until 2007. Mr. Sutton
joined International Paper in 1984.
W. Michael Amick, Jr., 52, senior vice president -
North American papers, pulp & consumer packaging
since November 1, 2014. Mr. Amick previously served
as vice president - president, IP India, from August
2012 to October 31, 2014, and vice president and
general manager for the coated paperboard business
from 2010 to 2012. Mr. Amick joined International
Paper in 1990.
C. Cato Ealy, 59, senior vice president - corporate
development since 2003. Mr. Ealy is a director of Ilim
Holding S.A., a Swiss holding company in which
International Paper holds a 50% interest, and of its
subsidiary, Ilim Group. Mr. Ealy joined International
Paper in 1992.
William P. Hoel, 59, senior vice president, Container
The Americas, since February 2012. Mr. Hoel
previously served as vice president, Container The
Americas, from 2005 until 2012, senior vice president,
corporate sales and marketing, from 2004 until 2005,