May 16, 2008 Volume 109 Number 10

Steelworkers’ deal at Cascade may unravel

Members of the bargaining team for United Steelworkers Local 8378 thought they had a deal April 30 with Schnitzer Steel Industries, owner of Cascade Steel Rolling Mills in McMinnville. But as this issue went to press, it appeared to have unraveled.

The previous contract, which had been extended day by day, expired April 28. Cascade announced it would stop collecting union dues as of May 4 and start advertising for replacement workers — a move the union interpreted as a provocation. But then the two sides reached a tentative agreement after an all-night session with a federal mediator.

In the tentative agreement, management backed off from its demand for a wage freeze, and union bargainers agreed to accept annual increases of 3.5 percent over the four-year contract as part of a package deal in which both sides made concessions on other issues.

Local 8378 President Joe Mungersaid the 3.5 percent wage offer was the best the union had seen in 30-some years, but added that some members weren’t happy with it. Cascade Steel Rolling Mills is highly profitable right now, and the stock of its parent company, Schnitzer Steel Industries, is up to $95 a share, double what it was a year ago.

Besides the annual wage hike, the deal increased starting pay, sick pay, and life insurance; committed the company to use all existing employees before contracting out for maintenance, and promised to bring contractors in-house if they continue for an extended time; improved safety training and the functioning of the joint labor management safety committee; extended the company’s production bonus to workers on light-duty or who work less than full time because of military obligations; and gave the option of automatic payroll deduction to members who want to contribute to the union’s political action fund.

The union didn’t get the increase in the boot allowance it had sought, and gave up its proposal that the contract continue if the mill is sold.

The union announced April 30 it would recommend the deal to the local’s 400-plus members and set a ratification vote for May 9. But shortly before the vote, management said it hadn’t agreed on one item the union thought it had agreed to. The vote was canceled, and the two sides scheduled a meeting May 12 to see if they could resolve the disagreement. At the meeting, management stuck to its version of the offer. A new date of May 15 was set for members to vote on management’s last offer; this time, the union would be recommending a “no” vote. The results of the vote weren’t known as of press time.

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