THOMAS STEEL STRIP Union approves contract including raises and bonuses

Retirees also benefit, with improvements in prescription drug coverage.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- Unionized workers at Thomas Steel Strip in Warren will see wage increases totaling $1.25 per hour plus $5,000 in cash bonuses under a new contract they ratified by an overwhelming margin Tuesday.
William Pounds, vice president of human resources for Thomas, said the agreement also addresses changes the company wanted to improve its flexibility.
"I think it's a fair contract and addresses issues that both sides had on the table," Pounds said. "We both came out with a good feeling, not only with the way things were negotiated but also with the future viability of the company."
Dennis Brubaker, a staff representative with District 1 of the United Steelworkers of America, said members of USW Local 3523 were "very pleased and thankful" for the new agreement, which expires July 31, 2007.
Informational meetings were held last week, and the ratification vote was all day Tuesday. Members approved the pact by a margin of 248 to 35. "When you get that big a majority approving a contract, it makes you feel like the bargaining team did a good job," Brubaker said.
About the pact
The contract affects about 315 active employees plus Thomas retirees, he said, but he could not state the number of retirees.
Brubaker said workers will get a $3,000 cash payment the first year of the agreement, in lieu of a wage increase. They'll get a 50-cent per hour wage increase the second year; 25 cents more per hour the second year, plus a $2,000 lump sum payment; and 50 cents more per hour the third year.
He said hourly wages now range between $12 and $15 per hour, plus production incentives.
The new contract sets a $2 million, per person, lifetime cap on health care expenses, an improvement over the previous $750,000 cap, and the new limit takes effect Jan. 1. That means an employee who might have been approaching the limit due to serious health problems will start afresh under the new agreement, Brubaker explained.
Insurance changes
Workers will see improvements in their spousal life insurance and dependent life insurance. Retirees will continue to have the same health care plan as active employees, Brubaker said, and they'll see an improvement in their prescription coverage, which will also be the same as employees'.
Pounds said the company will switch from a traditional plan to a preferred provider plan for employee health insurance, which will save money. Cost savings were also instituted in other areas, he said, but he would not elaborate because employees have not yet been briefed on all the changes.
"There was give and take on both sides, and I think the community should feel very good about that," he said. "Both sides were looking for what they could do for the future of the company."
The new contract also restores profit sharing for employees, which had expired in February and had to be renegotiated. Brubaker said the plan guarantees workers $250 per quarter, $1,000 a year.
The company and the union had been bargaining since May 29 and reached a tentative agreement July 30, just a day before their previous contract expired. Workers voted July 28 to strike if no agreement was reached.
Based in Warren, Thomas Steel Strip is owned by the Corus Group based of London.
Thomas Steel Strip processes steel for Duracell, Energizer and other name-brand battery makers, as well as for ammunition and automotive parts.
vinarsky@vindy.com