WEATHERSFIELD Plant is losing money, RMI tells union

The company had hoped to save $3.5 million or more with union concessions.
THE VINDICATOR
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WEATHERSFIELD -- A top negotiator for RMI Titanium said its revenues have dropped 40 percent over the past year and the company wants union workers to accept sizeable cutbacks to stay competitive.
David Paull, vice president of administration and the chief negotiator for RMI, said the company originally hoped to persuade union workers to accept $3.5 million to $4.0 million in concessions.
"RMI Niles is generating millions of dollars in operating losses. Revenues are decreasing, not increasing," Paull said. "We've been cutting costs in all areas. The union has to accept some changes too."
RMI's most recent proposal would have saved much less than the targeted $3.5 million, he said. It included a wage freeze, but pension and profit sharing remained the same and workers were not asked to pay a share of their health care premiums.
Locals 2155 and 2155-7 of the United Steelworkers of America rejected the offer but agreed to a one-week contract extension when their 41/2 year agreement expired at midnight Tuesday.
The two sides have agreed to get help from a federal mediator.
Union's stance
Todd Weddell, Local 2155 president, said the union has been willing to work with the company to help decrease health care costs. Workers have also offered changes to meet the company's need for more flexibility on the production floor by allowing workers to do different jobs instead of sticking to just one.
As for wages, he said the union is asking for "modest increases" because they understand that titanium markets are down and health care costs are a problem.
Weddell argued that the company is making money, and he complained that the company has refused to say what cuts it is making in other areas.
"Unfortunately they chose to start with the union to make their cuts," he said. "This is by no means a bankrupt company. It's a company that's made money since 1996."
Demand is down
Paull acknowledged that RTI International Metals, RMI's parent, has earned profits consistently, although its profit levels have been falling. He argued that RMI Niles, however, is losing money while some of RTI's other divisions have been profitable enough to offset the losses.
The Niles plant produces titanium and about 40 percent of its business is from commercial aerospace. With several airlines in bankruptcy and others struggling to avoid it, Paull said, demand for new aircraft has been down for years.
Competition from Russian titanium producers and the fallout from the Sept. 11, 2001, terror attacks have also had negative impacts on RMI's business.
RMI's plant is operating at about 40 percent of capacity because of the diminished demand for its products, Paull said, and more than 100 workers are laid off.
Paull said the company has been working to reduce its raw material and utility costs, has renegotiated supplier contracts to reduce those expenses and has cut administrative costs.
Labor strikes preceded the last two union contract ratifications at RMI. The union's last agreement was reached after a bitter 61/2 month strike in 1999, and workers were on the picket line for a week before reaching the previous agreement in 1995.
vinarsky@vindy.com