Latrobe Specialty Steel to Continue Production
05/02/2008 - Latrobe Specialty Steel says that its production, finishing, and delivery operations would continue despite a strike by 375 hourly workers at its Latrobe, Pa., facility.
Latrobe Specialty Steel has informed customers that its production, finishing and delivery operations would continue unaffected by a strike by 375 hourly workers at its Latrobe, Pa., facility.
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While it is unfortunate that the local union rejected the company's offer, Latrobe Specialty Steel has made comprehensive contingency plans to maintain normal operations until the represented workers return to their jobs."
Hans Sack
President and CEO
Latrobe Specialty Steel
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Members of Steelworkers Local Union 1537 walked out at midnight, May 1 after the union rejected the company's final contract offer. The company said that it would continue to operate with supervisors and temporary workers.
“Latrobe Specialty Steel, facing mounting competition from foreign and domestic non-union companies, must be able to win in global markets,” said Hans Sack, President and CEO. “We must prudently manage the increasing costs affecting every phase of the business. Latrobe cannot be oblivious to global wage factors and inevitable economic cycles. We need to have a contract with the Steelworkers that will keep the company competitive for the long term.
Despite the strike, Latrobe Specialty's capacity expansion project continues on schedule. The company predicts the first hot metal in the third quarter of 2008 and full production in the first quarter of 2009. Goals for the project include shorter lead times, higher quality assurance, and the introduction of new product solutions.
“Latrobe has a duty to all its customers, especially to our nation's armed forces, to protect the production and delivery of our critical products to the manufacturers of vital defense equipment. While it is unfortunate that the local union rejected the company's offer, Latrobe Specialty Steel has made comprehensive contingency plans to maintain normal operations until the represented workers return to their jobs," said Hans Sack.
"Latrobe Specialty Steel will continue to keep its promises to its customers, suppliers, investors and its devoted employees. That means meeting our promised delivery and quality commitments," said Sack.
Latrobe Specialty Steel facilities in other locations are not affected by the Local 1537 strike.
Headquartered in Latrobe, Pa., Latrobe Specialty Steel manufactures and distributes precision-engineered specialty alloys for customers worldwide. Airframe and defense systems manufacturers specify Latrobe's high-performance, vacuum-melted and vacuum-remelted alloys for many critical components. In business continuously since 1913, the company employs approximately 900 people in ten locations throughout North America and Europe.
