All-night talks between Geneva Steel executives and union Steelworkers ended in a tentative contract agreement Friday afternoon.
Both sides declined to discuss terms of the new deal until union leaders present it to the rank and file. The agreement reached after a 16-hour bargaining session is subject to approval by the United Steelworkers of America's International Executive Board and ratification by the USWA Local No. 2701 membership.Information meetings with about 2,200 union members won't be scheduled until the week of March 19, said Kelly Hansen, union financial secretary. A vote on the contract will follow. Because Steelworkers haven't seen the details, Hansen said he didn't know how the deal will be re-ceived.
"They're going to have to see the agreement to really make a decision," he said.
Geneva spokesman Mitch Haws called the tentative contract a big step toward ending the 10-day impasse. The previous contract expired at midnight Feb. 28. Steelworkers agreed to work day to day, although union membership had authorized a strike.
"The contract represents a win-win for both the company and the employees. It rewards the employees for their efforts and helps Geneva remain competitive," Haws said.
Geneva's proposed restructuring of plant operations, not wages, was the primary sticking point during negotiations, Hansen said.
The company, which lost $26.2 million last year, proposed to slash labor costs by a million worker hours to stay competitive in what is anticipated to be a growing steel market. It intended to do that by combining jobs, cutting back overtime, contracting out some work, adjusting work schedules and devaluing seniority.
Union president, Denny Kujala, found that unacceptable, saying it would break the mill's operational backbone.
Steelworkers said they made concessions to management during the past six years of modernization projects with the understanding they'd be fairly compensated. Geneva has spent $300 million upgrading the plant. Workers said they expected to be able to participate in a profit-sharing plan once the projects were completed.
The last contract contained a performance dividend plan (PDP) in which workers could earn more money based on productivity. It only started paying off late last year when the continuous caster came on line. Geneva offered to fire up a third blast furnace to increase productivity and give workers a chance to earn more.