Weirton Steel contract ratified

Findlaw (AP-Vicki Smith) reports: “Weirton Steel Workers OK Pact With ISG”

Employees at bankrupt Weirton Steel Corp. represented by Independent Steelworkers Union (”ISU”) voted overwhelmingly Monday to ratify a collective-bargaining agreement with the mill’s prospective new owner, International Steel Group, Inc. (”ISG”)

“We are ready to embrace a new way of making steel, and we are preserving the steel industry in Weirton that has been here for nearly 100 years,” said ISU President Mark Glyptis. “We welcome the partnership with ISG and are prepared to make this partnership profitable, proud and long term.”

The contract vote was one of the union’s most important decisions since 1983, when employees decided to buy the mill from its previous owner, now-defunct National Steel Corp. . . .

The contract would save about 2,000 jobs in Weirton and is packed with incentives, including bonuses and quarterly profit-sharing. Workers would be required to perform more tasks than in the past, with the number of job categories shrinking from 32 to five. However, the pay system would reward them for increased productivity.

Starting wages would range from $14 to $19.50 per hour, with raises 12, 30 and 46 months into the contract.

The contract also would provide traditional benefits such as vacation time, bereavement and sick leave, health and vision coverage, and a 401(k) savings plan. It also includes a defined-contribution pension plan. Read more

Sounds like not a bad deal for the employees, particularly the traditional benefits, as health coverage is now so often a major disputed issue in negotiations.

A defined-contribution pension plan as a better deal for the employer than the defined-benefit plans which have been problematic to fund. Reduction in the number of job categories provides much-needed flexibility for management, and the incentives sound like a good move towards pay-for-performance.

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.