Gerdau Amersteel and union spar over labor contracts

Gerdau Amersteel and union spar over labor contracts

Yet another group of disgruntled Gerdau Amersteel (GA) workers have decided they have had enough of the company’s employment practices. Following Gerdau Amersteel’s surprise visit from Brazilian union leaders last week to protest the forced worker lockout in Beaumont Texas, workers at the company’s St. Paul, Minnesota plant have voted to authorize a strike based on labor contract issues. These issues involve a variety of disputes over healthcare benefits, pension plans, and unemployment benefits. Last week (August 7) United Steelworkers of America (USWA) Local 7236 voted overwhelmingly to give union leaders the power to authorize a strike upon a 72-hour notice to the company. Management may also lock out the 325 workers with 72 hours’ notice, in which case GA and the USWA would have another Beaumont on their hands. However, John Duray of the USWA told SteelOrbis that negotiations between Local 7236 and GA management started off well and have been productive. He does not expect another worker lockout. Several more negotiation sessions between the union and GA are scheduled for later this month. Regarding the Beaumont situation, Duray said that there has been a “loss of confidence and morale” among workers though management has agreed to consider the union’s proposed healthcare plan. “There has been more progress and talks lately,” Mr. Duray said. “The union is optimistic. The fact that the company is studying the proposal is a huge step.” The lockout in Beaumont, Texas was addressed last week (August 9) by Brazil’s two largest metalworkers’ unions. The union leaders showed up at GA’s Tampa, Florida headquarters with petitions and flyers, demanding an end to the lockout. Brazilian union leaders Fernando Lopes and Nair Goulart, along with Beaumont workers and USWA representatives, addressed a rally outside of GA’s headquarters before entering to present management with signed petitions from the company’s North American work force. The petitions, addressed to Ameristeel CEO Phillip E. Casey, read: “Violating federal law to lower labor standards is not the way to compete in a global economy. It’s time to end the illegal lockout in Beaumont and start bargaining in good faith.” The workers and union leaders were turned away and told that they would have to make an appointment to address their concerns at a later date. The workers later handed out flyers contrasting the “record profits for Tampa executives” with “pay cuts and illegal lockouts for Texas steelworkers.” Disputes between Beaumont workers and Gerdau Ameristeel management arose in May after workers rejected the company’s standard labor contract which would have cut wages and eliminated overtime pay provisions. Workers at the Beaumont plant have been locked out since May 26 when Ameristeel decided to idle the plant until the labor dispute is resolved. Due to a soft wire rod market, the Beaumont plant shutdown has had little effect on GA. However, GA recently announced a price increase to $40/nt for their wire rod products, which, if it holds, should provide incentive for both parties to settle. Gerdau Ameristeel is the fourth largest overall steel company and the second largest minimill steel producer in North America.