Newport Steel Workers Await Contract Proposal
Workers who went on strike this past weekend at Newport Steels Wilder, Kentucky plant returned to work Monday pending a Wednesday proposal.
United Steelworkers of America Local 1870 members rejected Fridays contract proposal by more than 2-1. They immediately began picketing that night. Union demands call for, among other things, better wages, increased job security, and providing laid-off employees the option of exchanging their seniority and callback rights for severance pay.
The two parties resumed talks on Sunday and reached a preliminary agreement that includes an hourly pay increase of $2 over the next two years, which is on par with the industrys going rate. While the wage increase is seen as fair, it is doubtful the company will agree to the severance pay if there is any chance workers could be called back soon.
Newport, an ERW
pipe manufacturer for oil and gas drilling operations, has been unable to indicate when 90 workers, laid-off in December 2003, would be recalled to its Wilder
pipe-making plant. The company claims that the situation is subject to the whims of market demand, pricing, and the cost of steel coils used in the
manufacturing of the
pipe.
A spokesperson for Newports parent NS Group, Inc. confirmed that the company and union had reached a tentative agreement; however, NS Group declined to comment further.