WEATHERSFIELD RTI shows loss, says it needs RMI concessions

A contract extension for union workers at RTI's local plant expires tonight.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WEATHERSFIELD -- Workers at RMI Titanium will receive details of the company's latest contract offer Wednesday, a union official said.
Todd Weddell, president of United Steelworkers of America Local 2155, said negotiatiors did not reach a tentative agreement in bargaining Monday, but union officials agreed to put the offer before workers.
The two sides have been bargaining in advance of a labor contract that expires at midnight today.
Company officials could not be reached for comment.
Officials at RTI International Metals, RMI's parent company, have been telling its labor leaders that the company is losing money, and they proved it Monday with a third-quarter report showing a loss of $2.5 million, or 12 cents per share, on sales of $50.2 million.
Tim Rupert, president and chief executive, said the negative balance is evidence that the company needs union employees at RMI Titanium, its Weathersfield titanium mill, to help weather tough times by accepting wage and benefit concessions.
RTI's titanium group, which includes RMI, lost $3.6 million in the quarter ending Sept. 30.
A year ago RTI reported a profit of $3 million, or 14 cents per share, on sales of $68.1 million for the same period.
Contract extension expires
Steelworkers Local 2155 and Local 2155-7, the unions representing about 400 hourly workers at RMI, agreed Oct. 15 to a one-week contract extension.
Weddell has said the union would like "modest" pay increases, and improvements in health benefits and pensions. Labor leaders are willing to work with the company on production flexibility issues and to help hold health-care costs down.
RMI originally asked for a pay cut, but more recently it proposed a pay freeze instead, elimination of some overtime pay and increases in workers' out-of-pocket costs for health care.
Officials have said RMI is losing money, although some of RTI's other divisions have done well enough to offset those losses until the most recent quarter. RMI has said it would like to save $3.5 million through union concessions.
Market decline
Rupert said the aerospace market decline has decreased demand for titanium products and increased competitive pressures for the company, which relies on the commercial aircraft business for about 40 percent of its sales.
"Further cost reduction, which is the key topic in current labor negotiations, must be achieved," Rupert said, "particularly in our titanium subsidiary, RMI Titanium Co."
The union has staged strikes in its last two contract negotiations.
RMI and parent RTI employ about 595 hourly and salaried workers.
vinarsky@vindy.com