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Severstal labor pact likely to get daily extensions
STAFF report
Warren
The labor agreement covering workers at the Severstal Warren steel mill is expected to be extended on a daily basis, after the expiration of the most recent contract extension this week.
The contract, which covers steelworkers at Severstal’s mills in Warren, Wheeling, W.Va., and Sparrows Point, Md., expired Nov. 1, 2008, but has remained in effect through a series of extensions.
Representatives from the United Steel Workers and Severstal North America said they expect to agree on another extension in the next few days.
“We have every reason to believe that we will reach a mutually beneficial agreement for a longer term extension,” said Severstal spokeswoman Marika Diamond. She added that the company has a “good relationship with the USW.”
“We’re just going to take it day by day until we can work out a longer extension,” said USW spokesman Tony Montana. “We don’t expect to work out another long-term agreement until the company works out its business plan.”
Severstal, Russia’s largest steelmaker, is reportedly trying to sell its holdings in Warren, Wheeling and Sparrows Point.
Diamond would not comment on the potential sale.