Members update on recent activities related to the announced June shutdown at Empire.
o Additional stripping approval for approximately 11.3 Million (Tilden) and 2.7 Million (Empire) tons has reduced the original effect of the layoff from approximately 600 to 323 members. This additional pit task will enable Tilden to produce at up to 7.8 million tons in 2013 and prepare Empire to begin its next run of Viceroy Pellet production on January 1st 2013, Viceroy production will currently be completed on May 10th followed by 1.5 million tons of Mag Flux for Algoma Steel starting afterward.
o The locals have been successful in negotiating several issues to minimize the effect of Layoff starting this June through mid-October.
o Local 4950 and the Company have come to a contracting out agreement on a significant electrical upgrade in the Tilden pit that will be needed to provide additional power required to operate the new P&H 4100 shovel scheduled to be on-line in mid-July.
o This agreement along with additional capital projects in the Empire Plant and an agreement at Tilden between local 4974 and the Company to move an Electrical/Plant Shutdown from mid-May to June will keep “ALL” Electricians and Electronic Repairmen listed on the WARN notice from layoff for the duration of the Empire shutdown.
o The Electrical/Plant shutdown agreement at Tilden will keep 94 Repairmen and Welders scheduled for layoff, working at Tilden from June 3rd to June 9th and 30 of these same members working from June 10th thru June 15th.
o Local 4974 and the Company have come to an agreement on the Tilden Balling Area Ventilation Project that was scheduled to be done by contractors in the second quarter(April thru May) for 16nweeks @ 11,000+ hours. This project has been rescheduled to begin in mid-June, the majority of this work will be done in-house and keeps 22 members in various classifications listed below working through the summer.
o General Laborers (3)
o Repairpersons (4)
o Electricians (4)
o Welders (5)
o Welder Layouts: Shop (2-4); Field (2)
o Crane Operators (1)
Of the 323 employees listed on the WARN notice these agreements outlined above will maintain employment for 55 members and reduce the number of Members going on layoff to approximately 270.
As of this writing we have been unable to reach an agreement with the Company with respect to offering a voluntary lay-off option or the implementation of a 32 Hour work week in the affected Crafts and Occupations listed on the WARN notice due to the Company’s concerns of it not being cost neutral. They have indicated they may still look at some number (?) of voluntary lay-offs if it is cost neutral.
o At this point the Company is going to proceed with a Range-Wide Displacement affecting approx. 270 Members.
o Unfortunately 240+ of this membership group will not be eligible for SUB Benefits and will lose insurance eligibility at the end of June.
o Your Economic Displacement Committees from both Locals are continuing to meet with their counterparts from Cliffs working to schedule Employee Meetings. To date the following meetings have been scheduled at Ronn Hall:
§ June 4, 5, 6 at 9:00am and 1:00pm
§ June 11 at 9:00am and 1:00pm
§ June 18 at 9:00am and 1:00pm
The following information pertains to the Supplemental Unemployment Benefit (SUB) and Insurance
SUB and Insurance benefits
o The Supplemental Unemployment Benefit Fund is currently funded to the following levels:
o Tilden Mine $4.47 Million.
o Empire Mine $5.06 Million.
o These funds each have approximately 1000 +/- full credit weeks of sub-pay.
o The sub fund is funded at $0.40 per hour for each hour worked .
o The amount of sub-pay paid to employees will decrease as the funding balance decreases.
o At 25% to 35% fund balance an employee receives 60% of weekly benefit.
o At 15% to 25% fund balance an employee receives 30% of weekly benefit.
o A fund balance of less than 15% terminates benefits until fund recovers.
o Bargaining unit employees with two or more years of seniority on or before layoff will be eligible for the following:
o Supplemental Unemployment Benefit pay is calculated at 26 times your Standard Hourly Wage (minus your unemployment benefit) per week for 26 weeks
o Retain your Insurance Benefits for six months.
o Bargaining unit employees with less than two years of seniority at layoff:
o Not eligible for the Supplemental Unemployment Benefit.
o Insurance benefits terminate at the end of the month in which layoff occurs.
o Insurance benefits can be extended by taking eligible vacation time in some situations.
o COBRA insurance can be purchased during the Sixty Day (60) eligibility window starting at the end of the month in which layoff occurred.
While we realize that this turn of events is unsettling and the information presented above is at best limited, the officers and the committee members of these Local Unions will continue to provide information and answer questions to the best of our ability based upon the information as we know it at the time.
We also ask everyone to keep in perspective the need to go about our daily tasks with safety in mind.
We ask all employees to exhibit respect for our fellow workers who may be affected by this layoff and please refrain from any remarks that are inappropriate to this situation.
The SUB pay received by this membership while on unemployment is paid from a fund of money that has been deferred from our wage and benefit package to assist those on layoff in difficult times such as these.
We ask that all members be aware that this is not a gratuity to our negotiated wage and benefit package; it is part of our negotiated wage and benefit package.
Do not mistakenly think this is any kind of governmental or company gratuity. The United Steelworkers and the Local Unions negotiated these SUB funds into labor agreements years ago while many who are receiving the benefit were nothing but a gleam in their father’s eye.
In Solidarity
The Officers of
USW LOCAL UNIONS
4974 and 4950