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Allegheny Ludlum and J&L Specialty Workers Ratify New Labor Agreement
06/01/2004 -
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Allegheny Ludlum and J&L Specialty Workers Ratify New Labor Agreement
June 1, 2004 — Allegheny Technologies Inc. (ATI) announced the United Steelworkers of America (USWA) represented employees at ATI Allegheny Ludlum and J&L Specialty Steel ratified a new labor agreement. Ratification paves the way for the company’s acquisition of J&L Specialty Steel, LLC assets.
The agreement expires June 30, 2007, and replaces existing labor agreements at Allegheny Ludlum and at the J&L Midland, Pa., and Louisville, Ohio, facilities. Because of workforce restructuring, one-time Transition Assistance Payments (TAPS) incentives will be offered by ATI to approximately 775 hourly employees who decide to retire over the next 2 1/2 years. |
"We're very pleased with the outcome of the ratification vote," said Pat Hassey, Chairman, President and CEO of Allegheny Technologies. "We believe this agreement secures a strong future for Allegheny Ludlum and its employees, including the new employees from J&L. The labor agreement facilitates a new work environment. With new flexible work rules, employees are given broader responsibility and have the opportunity to become more engaged in the business.
"We've entered a new era of cooperative joint effort. The USWA leadership and its represented employees recognized what needed to be done to make Allegheny Ludlum more cost competitive. Working together, we were able to construct an agreement that improves Allegheny Ludlum's cost structure, while saving jobs and providing a good compensation package."
Terry Dunlap, President of ATI Allegheny Ludlum said, "We worked closely with local union leadership to develop this agreement and we will continue to work together during implementation to accomplish a smooth transition. The significant transformation in our plants as part of the new USWA agreement is critically important to our success. Production and maintenance job grades will be reduced to 5 from 33. Due to the broader job descriptions, significant training will be required for our employees. To accomplish this task, a Joint Hourly and Salary Training Committee is being established at each plant. We believe this agreement is a good solution for our employees, retirees, customers and suppliers."
Closing of ATI’s purchase of J&L Specialty Steel is expected on June 1, 2004.
Allegheny Technologies Inc. (ATI) is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $1.9 billion in 2003. High-value products include nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steels, super stainless steel, exotic alloys, which include zirconium, hafnium and niobium, tungsten materials, and highly engineered strip and Precision Rolled Strip® products. Commodity specialty materials include stainless steel sheet and plate, silicon and tool steels, and forgings and castings.
