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GENEVA EMPLOYEES SHARE THE HARVEST
2ND ANNUAL PROFIT-SHARING DISTRIBUTION AVERAGES $4,500 PER WORKER

SHARE GENEVA EMPLOYEES SHARE THE HARVEST
2ND ANNUAL PROFIT-SHARING DISTRIBUTION AVERAGES $4,500 PER WORKER

Geneva Steel employees will be smiling all the way to the bank Wednesday as they receive a profit-sharing distribution for the second year in a row.

The company divided more than $11 million among its 2,500 union, non-union and exempt employees Wednesday. The average union employee at Geneva Steel will receive more than $4,500, or an estimated average profit-sharing payment of $2.24 per hour for all eligible hours worked. Last year, an average of $4,000 was given to each employee, a total distribution of $10 million."This plan is without comparison in the steel industry, and it's well-deserved," said Dennis L. Wanlass, vice president and chief financial officer. "The diligent efforts of our employees this past year have helped make the Geneva dream a reality. Their hard work has helped Geneva secure a strong market presence in the United States and abroad."

This is the first profit-sharing distribution under a new union contract which encourages the company to invest in modernizing the plant. The contract, which took effect Sept. 1, modified the profit-sharing plan to allow the company to subtract from net earnings 25 percent of the first $50 million and 30 percent of the amount over $50 million spent on capital improvements, before computing profit-share amounts. The modification primarily will affect shares in 1990-91; Geneva has agreed to spend $156 million in capital improvements in 1990.

The new contract also did away with a profit-sharing maximum of $3 per hour worked.

Joe Cannon, president of Geneva Steel, praised company employees' efforts, which "have contributed so greatly to Geneva's success in a year in which the entire steel industry is down 3 percent to 4 percent nationwide." Cannon said Geneva has maintained full production despite tight market conditions.

Local merchants apparently also will be sharing the wealth. Geneva employees are being given the opportunity to cash a portion of their profit-sharing checks for $2 bills at Valley Bank or Family First Federal Credit Union to take advantage of a "Two-Buck Bonanza" being sponsored by many local merchants. The bonanza - $2 bill specials, discounts and coupons - is being offered at University Mall and other businesses through Utah County.

However, according to one Geneva employee, there is an ulterior motive behind the "Two-Buck Bonanza." Geneva employees will be able to demonstrate their financial impact on Utah County by spending the $2 bills. To facilitate that demonstration, employees are being given their profits in two checks and are being encouraged to cash the smaller check for the $2 bills, the employee said.