Labor problems in US WR industry are easing - slowly

Labor problems in US WR industry are easing - slowly

SteelOrbis talked to United Steelworkers (USW) representatives today to find out the latest news about ongoing labor situations at Gerdau Ameristeel and Heico wire rod mills. Workers at Gerdau Ameristeel's Beaumont, Texas wire rod mill are not too happy these days, according to USW rep. Gerald Dickey. After their contract ran out last May, laborers at the Beaumont mill were locked out until last December, when the company started to let some employees come back to work, still without a contract. "The workers are going back when they're called, but they're not calling them back by seniority," said Mr. Dickey. The USW is unhappy with what Mr. Dickey referred to as Gerdau's "illegally implemented bargaining proposals," namely, the terms by which the employees are being called back to work. Mr. Dickey told us that 163 out of 270 employees have been called back so far, but on Gerdau's own terms, not the Union's. He confirmed that the workers who have come back have not started melting steel yet and are only rolling billets into finished product. As far as working out a new contract with the company is concerned, Mr. Dickey said, "We're still willing to negotiate for a contract, but I don't think any dates have been set yet." SteelOrbis also spoke with Canadian USW representative Wayne Fraser about the labor situation at Heico's Ivaco Rolling Mills in Ontario, Canada. Mr. Fraser confirmed that workers at the wire rod mill who had been on strike are now coming back to work. "There are about 30 that have not been called back yet. The workers are not back yet in the melt shop," he said. The workers have a new three year contract, and are apparently quite happy with it, as it has a 77 percent approval rate, according to Mr. Fraser. Neither Gerdau Ameristeel or Heico Steel could be reached immediately for comment. It is important to note that both mills are producing wire rod again even though they use billets supplied from outside sources. Billets are readily available and pricing is competitive. Ivaco / Heico had struck a long term billet supply agreement with QIT - Fer et Titane Inc in Canada some time ago. QIT is a well known billet supplier of specialty grades, a market segment on which the Ivaco mill has concentrated.