Union workers at Geneva Steel are preparing for a strike after weekend contract negotiations left them at a stalemate with company management.
"There has not been any progress to speak of," said Kelly Hansen, financial secretary of the United Steelworkers of America Local No. 2701.Pending an agreement during talks Monday, it looks like steelworkers will walk out when the contract expires midnight Tuesday, he said. Discussions are scheduled to continue all day and possibly into the early morning hours Tuesday. Union leaders will hold meetings with about 2,200 rank-and-file members Tuesday. Geneva employs about 2,700 people.
Steelworkers have already prepared picket signs and are setting up strike duties and schedules, Hansen said.
Geneva executives also are preparing for a possible strike. The company has a detailed operational plan it will rely on should steelworkers walk out, said Mitch Haws, company spokesman. Management employees have been put on alert that they could be called in to work long shifts starting early Wednesday. In a worst case scenario, Geneva could hire replacement workers.
Wages and benefits and management's proposal to restructure the plant's day-to-day operations are the main sticking points. Geneva wants to trim a million worker hours from its labor costs by combining jobs, contracting out for some working, reducing overtime and devaluing seniority.
Union President Denny Kujala said restructuring would "break the back bone of operations."
Union leaders are seeking an $8.50 cent wage and benefits increase. Geneva calls the proposal unacceptable because it would boost labor costs $35 million annually. Executives are offering workers a chance to earn more through an average of $1.42 an hour through a performance dividend plan.
While the union and management appear to be far apart, they're still talking.
"I think it's significant that the two sides are still at the table," Haws said. "I think both sides have the company's interests at heart."
Steelworkers threatened to strike in September 1993 before narrowly approving an 18-month contract that gave them a minimum 73-cents-per-hour base wage increase.