Union, RTI approve 6-year labor contract

Staff report

NILES

United Steelworkers of America Local 2155 and RTI International Metals have approved a six-year labor agreement at its plant here.

The contract, effective Friday, extends through June 30, 2018, and addresses wages, pensions and profit sharing for 350 union-represented employees at the facility. The previous work agreement was not scheduled to expire until June 30, 2013, said Dawne S. Hickton, RTI vice chairwoman, president and chief executive officer.

Hickton said RTI and the Steelworkers have a relationship of more than 60 years at the Niles facility.

“The extension of our labor agreement through mid-2018, as well as RTI’s intention to continue to invest in the Niles plant, is further evidence of this collective commitment to produce best-in-class, advanced titanium-mill products for our global customers,” she said.

“Through these early negotiations, we attained a fair contract with economic and other improvements for all our members. This package opens doors for continued prosperity for our members and RTI Niles. We look forward to continuing to build and improve our relationship with RTI management,” said Todd Weddell, president of Local 2155.

Weddell, who has been Local 2155 president for 12 years, would not discuss specifics about wages, benefits and profit sharing. But he said it was “obviously” a good contract, noting that union members “overwhelmingly” approved the new agreement.

He said the contract contains significant wage increases and additional company contributions to the defined pension plan and the 401(k) savings plan available to new hires.

He said RTI also pledged to invest in new equipment and repair old equipment this year.

In fiscal year 2011, RTI net sales rose 23 percent to $529.7 million compared with $431.8 million in 2010.

Operating income for the year nearly doubled to $27.8 million, compared with $14.1 million for the prior year, and net income was $6.6 million for 2011 versus net income of $3.4 million for the prior year.

Titanium-mill product shipments for FY 2011 totaled 14.7 million pounds compared with 10.5 million pounds in 2010.

The titanium company ended 2011 with cash and other highly liquid investments of $333.8 million and $230.0 million of convertible debt due in 2015. The company has 18 locations, including two in Ohio, in Niles and Canton, and three outside the United States. The total number of employees worldwide is about 2,200.