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Ispat Inland and Union Recess Talks

07/19/2004 - Ispat Inland Inc. and the United Steelworkers of America suspended talks on Thursday, July 15, after five weeks' intensive discussions toward a new collective bargaining agreement.

Ispat Inland Inc. and the United Steelworkers of America suspended talks on Thursday, July 15, after five weeks' intensive discussions toward a new collective bargaining agreement.

"Our competitors have significant advantages in employment costs due to the absence of pension and retiree health-care obligations."

"This gap needs to be addressed in these talks so that the playing field can be leveled among Steelworker-represented companies, protecting the long-term interests of our employees and communities."

Louis L. Schorsch
Ispat Inland President and CEO

However, Louis L. Schorsch, company President and CEO, expressed confidence that a timely, competitive agreement would be reached. Schorsch has been participating in the talks involving these issues.

"The company and union agreed in our 1999 negotiations to incorporate the substance of any changes to the industry pattern in our 2004 contract," said William P. Boehler, the company's Director of Industrial Relations. "The new agreements that were negotiated by the union and our competitors contain many new approaches to how work is organized and managed that are expected to improve productivity and reduce costs.

"Attempting to adapt these changes to our situation takes a good deal of time and discussion."

Boehler said the parties have made progress on non-pattern or local issues with the Steelworker locals representing the company's three locations – the Indiana Harbor Works in East Chicago, Ind.; Ispat Inland Mining Co. in Virginia, Minn., and the I/N Tek and I/N Kote joint ventures with Nippon Steel Corp. in New Carlisle, Ind.

The current agreement expires on Aug. 1. However, the 1999 labor agreement provides that any unresolved dispute on any issue would be resolved by binding interest arbitration — without strikes or other interruptions in operations.

Ispat Inland Inc. is a subsidiary of Ispat International NV, one of the leading steel companies in the world, with steelmaking facilities in six countries and shipments of 15.2 million tonnes in 2003. Ispat Inland manufactures a broad range of semifinished and finished flat and bar steel products and is one of North America's lowest-cost integrated steel producers.

In addition to Ispat Inland in East Chicago, Ind., Ispat International has major steelmaking facilities in Canada, Mexico, Trinidad, France and Germany. Ispat International is a member of the LNM Group, the world's second-largest and most global steel group, which also operates in Algeria, Czech Republic, Indonesia, Kazakhstan, Poland, Romania and South Africa.