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13 September, 2001The USWA says that a first step has been taken to save the bankrupt steel company.
USA: With a new tentative agreement reached on changes to its 1996 contract with Wheeling-Pittsburgh Steel, the United Steelworkers of America says a first step has been taken to save the bankrupt company. In a press release issued on September 13, the union's president, Leo Gerard, states that the tentative agreement "represents our union doing more than its fair share in stabilizing Wheeling-Pitt. Now it's crucial that the federal government provide help through emergency steel loan guarantees and for the company's other stakeholders to participate as well."
The proposed modified labour agreement would maintain all of the company's current steel operations, as well as health care benefits for its present and future retirees. It would also provide employees with 20 per cent ownership in Wheeling-Pitt when it emerges from bankruptcy. The agreement proposes that workers, both union and non-union, take a temporary cut in wages, and scheduled wage increases will be delayed but not eliminated. Some hourly workers will be laid off, but a proportional number of salaried personnel will also be laid off.
The pension plan has been significantly improved with a "30-and-out" provision making it possible for workers with 30 years of service to retire with full pensions, and workers will be able to participate in a new profit-sharing plan once the company becomes solvent. There will be tougher restrictions on the company's use of outside contractors and significant union input in decisions affecting the future of the company.
The ratification vote by the members will be tallied on September 29.
The proposed modified labour agreement would maintain all of the company's current steel operations, as well as health care benefits for its present and future retirees. It would also provide employees with 20 per cent ownership in Wheeling-Pitt when it emerges from bankruptcy. The agreement proposes that workers, both union and non-union, take a temporary cut in wages, and scheduled wage increases will be delayed but not eliminated. Some hourly workers will be laid off, but a proportional number of salaried personnel will also be laid off.
The pension plan has been significantly improved with a "30-and-out" provision making it possible for workers with 30 years of service to retire with full pensions, and workers will be able to participate in a new profit-sharing plan once the company becomes solvent. There will be tougher restrictions on the company's use of outside contractors and significant union input in decisions affecting the future of the company.
The ratification vote by the members will be tallied on September 29.