WCI STEEL Employees consider contract

Workers say they hope concessions will save the mill.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WARREN -- Longtime WCI Steel workers smiled after hearing about details of a proposed labor contract.
The deal includes some assurances that pensions will be paid in full and also contains a $50,000 retirement incentive.
"You leave with a little extra change in your pocket," said Victor O'Rourke, 54, of Warren, who has worked at the mill for 36 years and plans to take the buyout.
Younger workers who left an informational meeting Monday were more likely to shrug than smile when asked about the contract.
They said they didn't like all of the details, including increased health-care costs and more job sharing, but they know the mill must make changes to survive.
"It's to the point where you have to do what you have to do," said Tom Fair, 34, of New Castle, a 10-year veteran of the mill.
Majority rules
Local and international officials from the United Steelworkers of America explained the contract to workers in advance of a vote July 15. WCI said approval of the contract by a majority of the 1,330 members of USWA Local 1375 is necessary for it to emerge from U.S. Bankruptcy Court.
None of the workers interviewed said he would vote against it, but they said there were several issues that prompted concern during the meeting.
The contract would place production and maintenance workers in five job classifications, compared with 34 now. Office and clerical workers would be placed in three job classifications, compared with 16 now.
Older workers said the younger ones would be working harder with the contract, but Joseph Perricellia, who has worked 12 years in the mill, said that's the way manufacturing has been headed for some time.
"That's a reality today. You've got to work harder and work more hours," said Perricellia, 41, of Warren.
He noted, however, that workers' wallets would be pinched by the health-care changes in the pact. While WCI would continue to pay the premiums, workers would face more out-of-pocket expenses.
Health care
Perricellia said most of the questions at the meeting, however, came from older workers who were concerned about their pensions and health care.
"Overall, I don't think it's that bad a contract," he said.
Pay would increase by 94 cents to $1.28 an hour over the 4 1/2-year contract. Pay for production and maintenance workers would range from $16.39 to $22.40 by the end of the deal. It also includes incentive and bonus pay.
Willie Summerlin, 50, of Warren said workers have little choice but to accept the changes because the contract is similar to ones adopted by Steelworkers at other mills.
Older workers said they were satisfied by contract provisions that give some assurance that their pensions and health care will be paid.
The deal calls for WCI's parent company, Renco Group of New York, to take over the pension obligations and sets up a benefit trust to pay for retirees' health care. WCI would make fixed contributions to the fund and additional contributions based on profits.
Tim Ward, 53, of Kinsman said he's satisfied that union officials did the best they could in protecting is financial future. He is planning to retire after 35 years.
"But the bottom line is that the younger workers will have a job," he said.
Others said, however, that it's too early to say whether WCI will succeed, even though it has a reorganization plan waiting to be approved in court.
"Go with the flow, that's what I've got to do. And hope and pray that it does last," said Bill Robertson, 42, of Bristolville.
shilling@vindy.com