The Timken Co. late Tuesday said it is willing to look into issues that caused its Steelworkers employees in Canton to vote down a contract proposal Sunday that would have led to a $225 million expansion at the Faircrest steel mill.
The company posted a statement on its website about 6 p.m.
The statement, which includes some of the proposed contract details, reads in full:
“The tentative basic labor agreement reached in December between Timken and USW Local 1123 was voted down by union members this past Sunday, despite unanimous support by union leadership.
“We’d still like to understand what the issues are to see whether there is any possibility of addressing concerns regarding the package offered,” said Timken Steel Business President Salvatore J. Miraglia, when asked what comes next.
“We presented a comprehensive wage and benefit proposal that would reward the operative teams and also ensure labor stability during the five-year capital investment program that we were hoping to make here in Stark County,” Miraglia said.
“Had the proposed contract passed, Timken was prepared to invest $225 million in its Faircrest Steel Plant.
“In September, the company asked the USW to open negotiations early because the current contract expires in September 2013, which would have been in the midst of proposed construction and start-up. The investment was designed to further increase the competitiveness of the operation and offer greater long-term job opportunity and security to Timken workers.
“The proposed contract, which was defeated 917-608, included:
• Five permanent base wage increases of 2 percent in each of the next four years and 3 percent in year five.
• Increase in the variable pay opportunity from 3 percent to 5 percent.
• Increases in incentive pay.
• Cost-of-living adjustments.
• An immediate lump-sum signing bonus of $2,000.
• Improvements in health and wellness plans (without any change to insurance plans negotiated under the 2009 contract).
• Increases in pension benefits.
“These changes would have applied to all bargaining unit employees, including those who have been hired since the 2009 contract. Under that 2009 agreement, wages for these newly hired Timken employees currently average $20.67 per hour and equalize with fellow veteran employees in 36 months.
“Timken operative wages — when fully loaded with pay and benefits — range from $40 to $50 per hour and are among the highest paid manufacturing jobs in Stark County.”
Local 1123 President Joe Hoagland said Monday that union members upset with the proposed contract indicated to him they had issues with a two-tier wage and benefit system put into place with the current contract.
Some union members also said they had issues with the elimination of a $5,000 retirement bonus, he said.
Timken on Sunday released a short statement saying that with the union voting down the tentative agreement it could look into investing money at its other facilities.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.