WCI STEEL Security guards threaten to picket

The union wants to meet with company officials to discuss the layoff plan.
THE VINDICATOR, YOUNGSTOWN, OHIO
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- A union leader said WCI Steel security guards will picket outside the mill gates if the company proceeds with plans to eliminate their department and contract with a private security firm.
"If they bring a private company in, we would consider the replacement workers scabs," said Heather Scott, recording secretary for the Security Police and Fire Professionals of America, Local 64.
Scott said the local's contract includes a clause which would allow the company to eliminate the security department if it faces financial difficulty, so the guards weren't completely surprised by that aspect of WCI's plan. WCI has reported losses nearly every quarter for the past 21/2 years, losing more than $155 million over that period.
Surprised by this news
They were surprised, however, to learn that officials are looking for a private security contractor.
An amalgamated local, the union represents 12 security guards at WCI as well as guards at other area plants.
"We'd like to work something out with the company, but they haven't asked. They just slammed this in our face," Scott said, adding that union leaders still hope to arrange a meeting with the company to discuss the situation.
Tim Roberts, a company spokesman, declined to comment on the union's complaints or whether the choice of a private security contractor has been made.
He said the company sent the union a 90-day layoff notice May 27 as required under the workers' bargaining agreement.
Robert Roden, grievance chairman for the local, said the steel mill has had unionized guards for more than 30 years -- first under Republic Steel, then LTV, then WCI.
"There's been financial distress before, but when the other companies had financial problems, they still kept the security people," he said. "This came as a shock."
Roden said local leaders have contacted officials at the union's international office in Detroit asking them to try to set up a meeting with the company. He said Local 64 has the legal right to set up informational pickets over the job elimination issue.
Company's troubles go on
Meanwhile, WCI's financial troubles are continuing.
The company failed to make a $15 million interest payment June 1 on its long-term notes, an action it announced in mid-May when it revealed plans for a three-part corporate restructuring. Roberts said it has a 30-day grace period to make the payment.
WCI is working with its lenders to restructure its cost and debt structures as part of the restructuring plan, and company officials are also meeting with leaders of United Steelworkers of America Local 1375 discussing possible changes in contract, which runs through Oct. 31, 2004.
Ira Rennert, the New York billionaire who owns WCI through his holding company Renco Group Inc., has also agreed to contribute cash to help make the company profitable again.
WCI, the only steel mill in the Mahoning Valley still making steel from raw materials, is the Valley's sixth-largest employer and its third-largest industrial employer with about 1,800 workers.
vinarsky@vindy.com