LOCKOUT AT AK STEEL DAY 275
Negotiations one year later: Little progress
Thursday, November 30, 2006
MIDDLETOWN — So much has occurred since negotiators for AK Steel Corp. and its hourly work force gathered at the bargaining table on Nov. 30, 2005.
Yet despite all the happenings — a nine-month lockout, the fall of a 63-year-old independent union, a wave of retirements and continued progress at Middletown Works — the company's proposal before the union is the same or worse than what was offered one year ago today.
Extras
Why?
Company officials have said the current contract — which was offered to the International Association of Machinists and Aerospace Workers Local Lodge 1943 on Oct. 19 following the second of two failed ratification attempts — reflects conditions of the steel market.
Union officials, meanwhile, have continued to say AK Steel has failed to bargain in good faith, ignoring demands that provide a foundation for any organized steel work force: Job protection, stronger health care coverage and retirement packages and a contract that reflects what other U.S steel companies have in place for their employees.
But the progress during the past 365 days — ebbing and flowing depending on month and attitude of those involved — begs the question: Has it worth it?
"It's been a struggle, that's for sure" said Local Lodge 1943 President Brian Daley.
Nov. 30, 2005, proposal
In nearly all areas — wages, active employee insurance, current and future retirees and pensions — the Nov. 30, 2005, proposal is superior to the offer now on the table, according to a comparison provided to The Journal.
The Nov. 30, 2005, offer by the company includes higher wage ranges — $15.91 to $21.75 compared to $15.66 to $21.50. Both offers include narrowing pay grades to five. Both include two raises over the life of the contract.
The insurance package in the Nov. 30, 2005 offer is nearly identical to the Oct. 19 proposal, despite increases in deductibles, most of which are a result of the continuing increase in insurance costs across the country, officials have said.
Future retiree benefit rates are greater in the Oct. 19 proposal than in the Nov. 30, 2005 offer; pension plans in both proposals are similar.
The void
While the union failed to respond to the economic portion of the Nov. 30, 2005 offer for 77 days, the time was spent negotiating the next contract, Daley said.
Bargaining sessions continued, mostly on non-economic issues, Daley said, because the union wanted to "put those aside."
But, "Without that (economic issues), we cannot evaluate the economic and non-economic aspects of their proposal," said company spokesman Alan McCoy.
The lockout begins
During the afternoon hours of Feb. 28 — the media already gathering in the parking lot of the then-AEIF's Crawford Street headquarters — hourly employees showed anger about being escorted out of the mill before shift change. Those scheduled to work the midnight shift were told to refrain from reporting, union members have said.
As the midnight hour approached, the buzz around the union hall escalated.
At about 12:20 a.m. March 1 — most rank-and-file
members already aware of the lockout — Daley ascended to the bed of a pick-up truck and told hundreds of chanting hourly workers the union and company could not reach an agreement.
Dozens of members filed into the hall, grabbing picket signs and heading to the company's nine gates to assume the positions they have held for the past nine months.
In the interim, the company has operated the Middletown mill with about 1,800 salaried and temporary replacement workers.
The new work force has set production records, officials said, which has proven to AK Steel executives they can operate the local plant with less employees who have broader job descriptions.
International takeover
As the summer heat rose, two international unions — the Machinists and United Steelworkers — poised themselves for a fight to represent the independent AEIF.
A ratification vote held in late July by the National Labor Relations Board certified the eventual takeover of the Machinists, which were endorsed by the AEIF's Executive Committee.
Despite their blessing, though, the group of local officers squared off with international representatives.
'Growing pains'
On four occasions, the executive committee either has acted without the approval of the international or in contrast with their intentions to get back to work with about 1,830 locked-out employees.
The executive committee of the local union involved in a labor dispute with AK Steel Corp.
However, Daley disputed that statement.
The local Executive Committee acted on its own in sending out information to news media, its members and others without the approval of the international union. At the time, Daley said: "Everything we do doesn't have to go through the international."
The communication between the two has improved since, representatives from the local and international union have said.
Ratification attempts
• Sept. 25: The union initially refused to release the vote count until about a week after balloting. The tally showed that 998 members voted to reject the proposal versus 768 members who wanted to accept it and return to Middletown Works.
• Oct. 18: Members rejected the company's "final clarified offer" 1,050 to 489. The announcement by Daley was made to resounding cheers at the union hall.
Union members who voted no said they did so because the company's offers were unfair on issues of contracting out work at the local mill and the plan to return to work after the lockout ended.
During the past 10 months, AK Steel has reached an agreement with unions at its Zanesville, Coshocton and Butler, Pa., plants.
Since the company took over for Armco in 2003, eight of nine labor agreements have been reached; the ninth agreement is on the table in Middletown.
"It's not a stretch, given our track record in 2006, that clearly this could have been approaching the first anniversary of a new contract," McCoy said.
Latest proposal
Following months of what was widely characterized as progress in bargaining sessions between AK Steel Corp. and its hourly work force, contract negotiations took a major step back Oct. 19 when the company presented its latest offer, the union said.
Compared to the proposal that members rejected 1,050 to 489 on Oct. 18, AK Steel's latest contract featured lower wages, higher health care costs sharing, a different pension plan, new alcohol and drug screening policies and a withdrawal of settlement provisions.
Nine days after AK Steel presented to the locked-out union its second "final" offer, it's back to square one, union representatives said.
The company has continued to say the current offer reflects recent changes to the country's steel industry and increased efficiency of salaried and temporary replacement workers inside the local mill.
Like offers for the past few months, the Oct. 19 proposal guarantees 40-hour schedule opportunities and no lay-offs during the life of the contract.
The future
For the first time since the lockout began, the local Executive Committee voted itself out of bargaining sessions, leaving — for the union — an international negotiator and a recording secretary.
As long as bargaining continues, the union will be represented by two people at the table.
International representatives hope the change makes a difference.
Machinists spokesman Jim Tyler and lead negotiator James Smith said last week they were "trying to get back to the Oct. 10 proposal," which rank-and-file members rejected by a more than two-to-one margin.
Union leaders have said there's "only a few issues" remaining to be negotiated — a fair return-to-work agreement and issues of contracting out work — that, once resolved, would end the lockout.
In the meantime, though, union members are losing between $1,000 to $2,500 per week in gross pay and benefits, McCoy has said.
While Daley has said the numbers provided by the company are too lofty, a conservative estimate puts the individual loss during the lockout at nearly $40,000. That's money that will never be regained, union members have said. And so the "struggle" will continue.
Negotiators for the company and union will meet Friday.
Contact this reporter at (513) 705-2840 or dgreber@coxohio.com.


