Thomas will continue to fill customer orders

By Don Shilling

The steel processor says it has lost $30 million in the past seven years.

WARREN — Thomas Steel Strip said it will continue to fill customer orders despite a strike by production workers.

Denny Wist, president and chief operating officer, said the plant will use its inventory of finished goods but also will continue to process steel. He didn’t provide details in a news release.

About 260 union workers walked off the job Thursday. Officials with Local 3253 of the United Steelworkers of America said they didn’t like the company’s pay proposal and wanted assurances that retirement benefits would not be reduced later.

Wist said Thomas has lost $30 million in the past years, and its market share has eroded. Production volumes are substantially lower than they were four years ago, he said.

“Our financial results require us to make changes to ensure the long-term viability of our company,” he said.

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

The company 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.

Wist said the company’s offer would have given an employee $12,120 extra over the life of the contract.

He added that the union’s proposal would have added millions of dollars to the company’s costs, which would have been a significant barrier to Thomas becoming profitable.

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

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

shilling@vindy.com