Steelworkers Approach Cascade Steel and Offer a One Year Pay Freeze

Union Says in exchange for a one year contract extension it will voluntarily forego a scheduled pay increase.
 
MCMINNVILLE, OR — Cascade Steel Rolling Mills, Inc., the largest private employer in Yamhill County, reached an agreement with the Steelworkers to voluntarily give up a scheduled pay raise. In what may be seen as a sign of the times, United Steelworkers (USW) Local 8378 in McMinnville voted March 22 to give up a scheduled pay raise in order to extend their union contract by one year.
 
Joe Munger, President of USW Local 8378, said "it was the union's idea to go to management of Cascade Steel Rolling Mills with the offer". The 3.5 percent raise was to take effect next month, and the contract was scheduled to expire April 1, 2011. Munger said "the union has little expectation that economy will have recovered by then, and it would be a bad time for the parties to be bargaining a new contract. Were still missing 4 shifts total in the Melt Shop, Rolling Mills and Shipping Departments resulting in 120 members laid off or terminated since December 2008, so the plant's workforce is down to less than 280 in the bargaining unit."
 
Cascade Steel Rolling Mills melts scrap metal to produce rebar and other products used in manufacturing and construction. If it's running, it means there's demand for construction materials. Munger monitors the construction market, and keeps an eye on housing starts, scrap and finished product prices to see if there's hope on the horizon. Right now prospects continue to look pretty bleak. "Early last year a New York Times article indicated that the Steel Manufacturing sector was the new "Bellwether" of the economy. If that is true, than that does not bode well for the economy", said Munger.
 
Ernie Lamoureux, United Steelworkers International Staff Representative said "What a courageous move on the part of the members to support this good faith effort. It is in the best interests of both sides if we’re not at the bargaining table in these rough times until some sort of recovery is in the parties sights". Extending the contract a year till April 1, 2012, means members will have the security of employer-paid full-family health insurance, a defined benefit pension plan, and other benefits and protections at current levels. Union scale wages at the plant average $20 an hour.