Dissatisfied steelworkers walked an "information" picket line outside Geneva Steel Thursday, while union leaders attempted to strike a new deal with company executives in Salt Lake City before their current contract expires next Tuesday."This is just to inform that their promises have been broken," said Jerry Sorensen, a 27-year veteran. Ten demonstrators carried signs reading, "Promises don't pay" and "Bargaining not blackmail."
Sorensen said employees have worked hard to see Geneva through $360 million in modernization projects and expect their salaries to be modernized as well.
"Now, we fear this company is giving us the shaft after we've stuck with them for nine years," he said. Joe Cannon, Geneva chairman and CEO, revived the plant in 1987 just hours before U.S. Steel was to shut it down.
But corporate officials say steelworkers are getting anything but the shaft.
"I think our proposal of 18 months ago is quite fair. I think what we're proposing this round is quite fair," said Mitch Haws, Geneva spokesman.
The current contract contains a performance dividend plan tied to productivity that started paying off last November after the last of several modernization projects went on line. The average worker earns $1.09 more an hour.
The company intends to fire up a third blast furnace to bump annual steel shipments from 1.9 million tons to 2.5 million tons. Combining the dividend based on that tonnage with a wage increase would boost the average worker's salary another $1.42 an hour, Haws said.
Terry Hansen, treasurer of United Steel Workers Local No. 2701, said workers were never sold on the performance dividend plan, which included a guaranteed increase. Now, the company wants to eliminate the guarantee, he said. Hansen says steelworkers were promised and prefer profit sharing to performance dividends.
"The profits have been there and they managed to take it away," he said. "We feel like they need to step back and pay profit sharing." As for the proposed pay increase, Hansen says it amounts to 17 cents an hour over three years.
Haws said the performance dividend plan gives steelworkers more control over what they can earn because it doesn't depend on the steel market.
Industry analysts expect an influx of 20 million tons of new steel into the market in the next three to five years, igniting a price war, said Tim Clark, Geneva special projects manager and negotiating team member. And the plant must be more flexible in its day-to-day operations to stay competitive.
Geneva wants to slash about 1 million worker hours from its labor costs by combining jobs, contracting for some work and adjusting work schedules.
"High-cost producers will simply not be around," Clark said.
Some steelworkers believe the plan means they won't be around.
"We're protesting the elimination of our jobs," Sorensen said while packing two picket signs. Hansen, the union treasurer, said as many as 500 workers could find themselves out of work.
Hansen calls Geneva's latest package "absolutely ridiculous." Corporate spokesman Haws calls it "attractive."
Even though the two sides don't have much time to close that gap before Feb. 28, neither side anticipates the "information" picketers to become strikers.
"If it is to get done, the management of this company has to make a drastic change in their attitude," Hansen said.
Haws, who spent Thursday in Salt Lake City during negotiations, said both sides want to reach an agreement.