Timken Co. and the United Steelworkers Local 1123 Golden Lodge have a new tentative contract agreement.
The Canton steel and bearings manufacturer and negotiators for the 2,300-member union late Tuesday afternoon announced an agreement on a proposed five-year contract. The Steelworkers last month voted down a proposed contract. USW members are expected to vote on the new, revised pact in about two weeks.
Neither the union nor the company disclosed details in the new tentative agreement.
A contract, if ratified, will allow Timken to spend $225 million to expand its Faircrest steel mill, the company said.
The Steelworkers continue to work under their current contract that is due to expire in September 2013.
The Steelworkers posted the following statement on the Golden Lodge website:
“The union met with the company to continue negotiations for the 2012 Tentative Agreement (TA).
“Today [Tuesday], these negotiations have resulted in the parties agreeing to a few changes to the TA. The negotiating committee believes these changes warrant bringing the Tentative Agreement back to the membership for a vote.
“The details of these changes will be communicated by mail.
“The negotiating committee believes the mailing should be in our members’ hands within a week and the ratification vote to take place within two weeks.”
The Steelworkers’ leadership last month said members rejected the previous contract in large part because it kept in place a two-tier wage and benefit package and eliminated a $5,000 retirement bonus.
Timken also released a statement that read in part:
“The parties reached a preliminary agreement in December, but union membership failed to ratify the proposal in a January vote, putting at risk a multi‑million dollar investment in Stark County (Ohio). Timken is prepared to invest $225 million in its Faircrest Steel Plant if a new labor agreement is ratified.
“We have outlined a very attractive investment for our steel operations,” said Salvatore J. Miraglia Jr., president of Timken’s Steel Group, “but it clearly will not move forward without a new agreement that ensures workforce stability throughout construction and startup. The vote will be our final opportunity to put the pieces in place to make this investment happen.
“The project has received state and local assistance, in return for Timken’s commitment to job security at the plant during the term of that support.
“The tentative agreement continues to provide:
“• Increases to permanent base wages every year, in addition to cost-of-living adjustments;
“• Increases in both variable pay opportunities and incentive pay;
“• Improvements in health and wellness plans;
“• Increases in pension benefits;
“• And, includes changes to the wage escalation rate for new employees.”
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com
