GEORGETOWN - Georgetown Steel employees
were asked this week to accept a 10 percent pay cut, or possibly see
Georgetown Steel close its doors, said James Sanderson, president of
Steelworkers Union Local 7898.
The request is part of a deal being negotiated with workers and
Santee Cooper electric to give the plant an economic boost, he
said.
As an exchange for the employee pay cuts, Santee Cooper is
offering to return a $2,220 security deposit and extend the mill's
billing cycle to 17 days, Sanderson said.
Currently that billing cycle is seven days, Sanderson said.
While Georgetown Steel owner Daniel Thorne declined comment on
specific details of the deal, he did acknowledge that the
negotiations involve Gov. Mark Sanford's office, Santee Cooper and
the union.
"Since those discussions are complex, I don't think its
appropriate to comment," Thorne said. "This has nothing to do with
any particular issue ... but they're all a piece of the
negotiations."
The discussion will not impact whether 109 employees laid off in
June will return to work next month, Thorne said.
Plans were announced this week to bring back most employees who
were laid off in June during an economic downturn at the plant.
Union members were asked Monday to take the pay cut and
contribute more to their health insurance plan, Sanderson said.
The union will vote on the offer by Monday afternoon. However,
union members will propose that the pay cut last only 60 days, while
plant owners want the cut to be permanent, Sanderson said.
Employees returning from a recent layoff would not be able to
vote, Sanderson said.
Sanderson said he does not think the proposal will be approved by
union members.
"I don't believe the majority of the people in our plant should
have to give up pay to keep their jobs," he said.
Employees have been asked to contribute $25 a week for family
health insurance coverage and $15 for single coverage, Sanderson
said. Both hourly and salaried employees will be included in the
insurance increases and wage reductions.
The employees were given the choice of accepting the proposal or
seeing the plant shut down, Sanderson said.
"We will try to keep that plant here in Georgetown," Sanderson
said. "The United Steelworkers' intentions are not to force it into
bankruptcy, but we need to have a level playing field."
Georgetown Steel employee Gary McDaniel said he does not want a
pay cut.
"There are other things they could do to save the mill other than
cut us," he said. "I'm not going to vote for it. They want us to
give, give, give. If the mill is in that bad a shape, why are they
hiring people back? I'm almost positive that it will be voted
down."