TIMKEN HEADLINESSteel Producers /
Timken
Timken, USW Local 1123 Reach New Tentative Agreement
Feb. 9, 2012 The Timken Company and the United Steelworkers (USW) Local 1123 have reached a new tentative agreement on a five-year contract to replace the existing labor agreement, which expires Sep. 2013. The agreement, which is subject to a ratification vote by members within the next two weeks, is unanimously supported by local USW negotiators.
The parties reached a preliminary agreement in December, but union membership failed to ratify the proposal in a January vote, putting at risk a multi-million dollar investment in Stark County (Ohio). Timken is prepared to invest $225 million in its Faircrest Steel Plant, including the addition of a ladle refining unit and large-bloom continuous caster, but the company’s investment is subject to ratification of a new labor agreement.
"We have outlined a very attractive investment for our steel operations," said Salvatore J. Miraglia Jr., President of Timken's Steel Group. "But it clearly will not move forward without a new agreement that ensures workforce stability throughout construction and startup. The vote will be our final opportunity to put the pieces in place to make this investment happen."
The tentative agreement provides increases to permanent base wages every year (in addition to cost-of-living adjustments) as well as increases in both variable pay opportunities and incentive pay. Also included are improvements in health and wellness plans, increases in pension benefits, and changes to the wage escalation rate for new employees.
Timken’s project has received state and local assistance, in return for Timken's commitment to job security at the plant during the term of that support.
Timken provides innovative friction management and power transmission products and services. In 2011, Timken’s approximately 21,000 employees generated sales of $5.2 billion operating from locations in 30 countries.