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Commercial Metal Forming to be purchased, union agreement ratified
By Kalea Hall
YOUNGSTOWN
Commercial Metal Forming at 1775 Logan Ave. has nearly made it through its parent company’s bankruptcy.
At the end of the month, CE Star Holdings’ purchase of the producer of tank heads and tank head accessories and its two sister companies is expected to be finalized.
Commercial has operations in Youngstown, California and Texas with a total of 148 employees. Youngstown is Commercial’s largest operation.
“We maintained that focus while a lot of other organizations can go off the rails pretty quickly,” said Bob Messaros, chief executive officer of Commercial Metal Forming. “We are glad to put this behind us and move on.”
Also, members of United Steel Workers Local 2332-1 based at Commercial’s Youngstown plant have ratified a new five-year agreement with the company that will go into effect upon the closing of the sale with CE Star Holdings.
The new deal includes a guaranteed 2 percent increase in wages for the 70 members of the union, and, depending upon profitability, raises could go as high as 3 percent in the fourth and fifth years of the agreement. The pension plan was converted to a 401(k) plan with the company contributing $1.70 per hour. The employees will maintain a 90/10 plan with the employer paying 90 percent of the health care costs and the employee paying 10 percent. Premiums are to go up by 2 percent.
“Given the circumstances, because bankruptcies are very, very tough, we felt we were able to bargain a deal that was still a fair deal for our members,” said Jose Arroyo, business representative for the USW.
The contract was ratified with 75 percent in favor.
In May, Constellation Enterprises, Commercial’s parent company, filed for bankruptcy, leaving Commercial, Jorgensen Forge Corp., of Washington and Zero Manufacturing of Utah up for sale. Columbus Castings in Columbus, another Constellation company, was left idled.
CE Star Holdings, a company formed by Constellation’s secured note holders, bid $108 million for Commercial, Jorgensen and Zero.
Messaros said no employees lost their jobs during Constellation’s bankruptcy.
“Through this entire process, which could be overwhelming, our folks did a remarkable job,” Messaros said. “We have tried to focus on controlling the things we could control. It’s been real collaboration [with the USW] through a period that could have changed things, but it hasn’t.”
Commercial has been in business since 1920. It was purchased by Constellation in 2008.