Posted on Thu, Oct. 09, 2003
GEORGETOWN STEEL

Steel mill asks workers
to accept pay cuts

Santee Cooper deal part of talks

The Sun News

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."


Contact KELLY MARSHALL at kmarshall@thesunnews.com or 520-0497.




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