ATI Issues Lockout Notice to USW
August 14 2015 - 8:20AM
Business Wire
Lack of Progress in Negotiations Pushes
Company into Temporary Solution
Faced with a lack of progress in ongoing contract negotiations,
Allegheny Technologies Incorporated (NYSE:ATI) issued today a
lockout notice involving more than 2,000 workers at various
facilities. The lockout takes effect Saturday, August 15, 2015. ATI
will continue to operate the affected facilities and continue
serving customer needs with ATI salaried and non-union employees
and temporary professional staffing until a new contract can be
finalized with the USW.
ATI began formal negotiations with the USW in May for contracts
that expired June 30, 2015. No extensions are in place. The company
presented its last, best and final offer to the USW on August 4
with a request that the union accept it by August 10. The USW
negotiating committee has not accepted the company’s offer or
allowed the ATI employees to vote on it. The company proposal
includes $4,500 in lump-sum payments over the four-year agreement
and continued incentive programs for ATI Flat Rolled Products
employees, who averaged $94,000 in earnings in 2014. The proposal
also included affordable solutions for continued family healthcare,
at about half of the cost that the average American worker
pays.
“While progress has been made during contract negotiations on
some issues, significant differences remain in critical areas
including: healthcare benefits for current employees, the structure
of benefits for employees hired after June 30, 2015, and updates to
subcontracting and scheduling rules,” said Bob Wetherbee, ATI Flat
Rolled Products Executive Vice President.
“These differences have remained since formal negotiations began
more than three months ago. ATI has made substantial good faith
moves throughout the negotiations, with little movement on these
issues by the USW.
“It is disappointing that the company has been placed in this
position, but this step allows us to continue to meet customer
demands while we continue our efforts to finalize a new contract
with the USW. It is a temporary, but necessary, step to ensure that
we continue to support our customers and help secure our
future.
“Our last, best and final proposal puts a workable solution on
the table, and the Union committee has taken no concrete or
decisive action on this proposal, despite our request that they
accept it by Monday, August 10, and take it to the membership for a
vote. The union has given no specific time frame for a response to
the company, nor have they committed to accept the offer, recommend
it to their membership, or schedule a vote. In the meantime, our
challenges continue to grow, and our operations become more
unstable.
“We look forward to finalizing a fair, more competitive and
responsible agreement with the USW and getting our employees back
to work as soon as possible,” Bob Wetherbee continued.
ATI approved a $1.2 billion investment in new state-of-the-art
facilities in Brackenridge, PA in 2008. Since then, foreign and
domestic competitors have been flooding the global market with
standard stainless steel. Chinese mills have doubled their output
in recent years and now produce half of the world’s supply of
standard stainless steel, one of ATI Flat Rolled Products’ main
products. As a result, market prices have fallen more than 30
percent in recent years.
At the same time, ATI Flat Rolled Products’ wage and benefit
costs continued to escalate. Employees under the recently expired
contract average almost $70 per hour in total compensation,
including base wages, incentive pay, paid time off, overtime,
pension, healthcare, and other benefits. ATI’s last, best and final
offer maintains current employee compensation levels and pension
benefits for current employees and existing retirees and surviving
spouses, while seeking reasonable solutions to better position the
business for the future.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management’s current
expectations and include known and unknown risks, uncertainties and
other factors, many of which we are unable to predict or control,
that may cause our actual results, performance or achievements to
materially differ from those expressed or implied in the
forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from
those projected in the forward-looking statements is contained in
our filings with the Securities and Exchange Commission. We assume
no duty to update our forward-looking statements.
Creating Value Thru Relentless
Innovation®Allegheny Technologies Incorporated is one of the
largest and most diversified specialty materials and components
producers in the world with revenues of approximately $4.3 billion
for the twelve months ended June 30, 2015. ATI has approximately
9,600 full-time employees world-wide who use innovative
technologies to offer global markets a wide range of specialty
materials solutions. Our major markets are aerospace and defense,
oil and gas/chemical process industry, electrical energy, medical,
automotive, food equipment and appliance, and construction and
mining. The ATI website is www.ATImetals.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150814005261/en/
Allegheny Technologies IncorporatedDan L. Greenfield,
412-394-3004
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