Gerdau Ameristeel and union resume talks

Gerdau Ameristeel and union resume talks

Gerdau Ameristeel (GA) and United SteelWorkers of America Local 8586 are sitting down to talk their differences out after last Friday's lockout. The environment around the plant has been tense over the past week as union members performed a mock funeral on Wednesday to symbolize “burying” their trust of GA management. Disenfranchised mill workers have been forced to look for employment elsewhere in an already tight job market. Differences between GA management and the union stem from a contract dispute. The union alleges the management gutted the current contract and offered a shell of its former self. Management has a different take and feels the new contract is very generous and fair. A spokesman for the company explained that the new contract would pay employees $13 to $14 an hour with up to $21 per hour for highly skilled workers while offering a “modern and flexible” insurance program, a 4.5% pay raise in the first year, and a $1.3 million payroll increase in the first four years of any new contract. The union is upset that the contract has cut wage levels and job classifications while eliminating overtime pay provisions. GA says it has invested over $500'000 in employee-suggested improvements to the mill and has set aside another $25 million once a new contract has been finalized. The Beaumont mill produces wire rod from more than 500'000 tons of steel per year. It employs approximately 350 employees of which 270 are union members.