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UNITED STEELWORKERS NEGOTIATIONS WITH GENEVA STEEL AT A STANDSTILL

 VINEYARD, Utah, Aug. 26 /PRNewswire/ -- Geneva Steel Company (NYSE and PSE: GNV) announced today that the United Steelworkers Union has at least temporarily suspended labor negotiations with the company. The current labor agreement expires at midnight on Aug. 31, 1993.
 "Until now, we have been meeting regularly with Union representatives and have resolved most non-economic issues. We have, however, not yet been able to resolve the economic issues. We have submitted what we believe is a fair and reasonable proposal and remain committed to the collective bargaining process. We are hopeful that the Union will return to the bargaining table. The Union has, however, made economic proposals that would treat the company like certain large integrated Eastern mills, and could threaten its long-term viability," said Joseph Cannon, chairman and chief executive officer.
 "The Union has proposed a wage and benefits package that would increase total labor costs by approximately $24 million each year. An increase of that size is just totally unacceptable. We must maintain our ability to compete against the new breed of low cost, high efficiency minimill producers of flat-rolled products," said Cannon.
 "The company has proposed across-the-broad increases in 1993 and in 1995 in addition to a "Performance Dividend Plan" that rewards employees as shipments increase, creating a win-win situation for the company and its employees," said Cannon.
 Despite difficulties in the negotiations, the company is hopeful that a strike can be averted. "Threats and heated rhetoric are common during Union negotiations; we are nevertheless hopeful that our workers will continue to report to work if an agreement is not reached by expiration of the contract," said Robert J. Grow, president and chief operating officer.
 In the event of a strike, the company intends to continue operating the plant at significantly reduced production levels utilizing exempt and non-union employees, as well as Union members who choose to report to work. The company is optimistic that it can operate at a level that would maintain positive cash flow during a strike. The company expects to increase production as a strike continues by utilizing returning workers and, if necessary, replacement workers.
 Geneva Steel is the only integrated steel mill operating west of the Mississippi River. The company manufactures hot-rolled steel sheet, plate and pipe for sale primarily in the western and central United States.
 -0- 8/26/93
 /CONTACT: Dennis L. Wanlass of Geneva Steel Company, 801-227-9302/
 (GNV)


CO: Geneva Steel Company ST: Utah IN: MNG SU:

WB-OS -- NY017 -- 6064 08/26/93 10:14 EDT
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Publication:PR Newswire
Date:Aug 26, 1993
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