Thomas threatens to trim pact offer

The company has offered to increase wages and provide bonuses for current workers.

STAFF REPORT

WARREN — Thomas Steel Strip said it will start to reduce its July 23 contract offer to the striking members of United Steelworkers Local 3523 if an agreement is not reached by Sunday.

Thomas Steel Strip issued its ultimatum in a statement Monday after negotiations on Aug. 19 at which no progress was made, according to a company statement.

The company said it would start to reduce its proposal to offset costs associated with Local 3523’s strike, which began July 24.

Calls to the Niles United Steelworkers office were not returned.

Thomas Steel Strip said the purpose of the Aug. 19 negotiating sessions was to review each side’s analysis of their proposed five-year agreement.

Neither party made a new proposal.

The company said it presented a cost analysis of its July 23 offer. The union continued to question the company’s actuarial firm’s analysis of the union’s pension and retiree medical proposals.

“We explained that United States accounting standards require us to record these costs in the manner presented,” according to the company statement.

“We are committed to reaching a fair and equitable agreement that provides benefits for each party. We have been part of the Warren business community since 1920 and plan to be here in the future. Our proposal gives the present employees a total of $3.94 million worth of improvements, such as wage increases, pension improvements and improvements in retiree medical.

“Although there are no further bargaining sessions scheduled, we are prepared to meet at any time to resolve the strike as quickly as possible. It is important that we achieve the necessary changes in order to secure the long term future of Thomas Steel and we are committed to a quick resolution if a reasonable offer is presented. We believe that if the employees are given a chance to vote on our July 23 proposal that they would accept it,” the company said.

Previously, the company said it has lost $30 million in the past seven years, and would continue to fill customer orders despite a strike.

About 260 union workers walked off the job July 24. At the time, officials of Local 3253 said they didn’t like the company’s pay proposal and wanted assurances that retirement benefits would not be reduced later.

The company offered to increase wages and provide bonuses for current workers, while installing lower pay and benefits for workers hired in the future.

Officials said Thomas Steel Strip offered three separate $3,000 bonuses, to be paid upon ratification, June 1, 2009 and June 1, 2010. It also offered raises of 50 cents an hour on June 1, 2011, and June 1, 2012.

Thomas processes steel for the battery, automotive and other industries.

It is part of Corus, a manufacturing company based in London, which was bought by Tata Steel of India last year.