Gerdau-Ameristeel in apparent labor dispute at Texas plant

Gerdau-Ameristeel in apparent labor dispute at Texas plant

Sources close to Gerdau-Ameristeel (GA) say that its Beaumont, Texas plant may be days away from a labor lockout. GA is playing its cards close to its chest, but early indications are that it is prepared to idle its plant and put the squeeze on the union. The Beaumont location was purchased from Cargill in a multimillion dollar deal in November 2004 that saw the acquisition of four long steel product minimills and three wire rod processing facilities. The plant in question produces about 700'000 tons of wire rod and coiled rebar per year. Full details of the dispute are numerous, but one of the major sticking points is the workers' refusal to agree to Ameristeel's standard labor contracts. According to GA's sources, should the dispute remain unresolved and a lockout occur, plant management and support staff are prepared to step in and assume control of the rolling mill in the worker's absence. When asked to comment on the situation, USWA's John Duray told SteelOrbis, “I’ve heard nothing to confirm these rumors, but I’m continuing to look into it.” Elsewhere, GA was pleased to report today that they have successfully reached a settlement at its Cambridge, Ontario plant. "We are very pleased that this long-term agreement benefits employees and the company,” aid vice president of human resources, Jim Rogers, “It is a demonstration of Gerdau Ameristeel’s commitment to employee engagement." The union’s 190 plant employees ratified the contract, which runs through May 15, 2009, on Wednesday, May 18.