Operations to Resume at Gerdau Ameristeel’s Beaumont Mill

Gerdau Ameristeel has announced that it Beaumont, Texas, steel wire rod mill will resume operations Dec. 12, 2005, following 11 months of negotiations. The company halted operations at the mill in May 2005 as a result of a labor dispute with United Steel Workers of America Local 8586.

"The company has met in good faith with union representatives for more than 11 months," Philip Bell, director of human resources for Gerdau Ameristeel, says. "We met on more than 50 occasions but have not achieved an agreement to date. It's time now to get our employees back to work and normalize production."

According to Gerdau Ameristeel, the exact terms under which the 269 employees will return to the Beaumont mill have not yet been determined; however, Bell says the company and union representatives will meet early next week to negotiate an interim agreement on start-up terms.

"The company and union have reached tentative agreements on many key topics including wage proposals, the length of the contract and most items related to employee health care,” Bell says of the final contract in a press release. “However, there are a handful of issues that remain unresolved and negotiations for a final agreement are ongoing."

If and when a final contract is agreed upon, it would likely include those terms tentatively agreed to during the course of negotiations, according to Gerdau Aneristeel. These terms include:

• Changes in wage structures, an increase in total compensation and protection from pay cuts for all current bargaining unit employees at the Beaumont Mill;
• Health care options that provide employees health care coverage at no cost, more flexibility in managing health care investments and an option to lower out-of-pocket requirements; and
• A long-term agreement of four years that provides Beaumont Mill           employees and the company long-term stability and financial predictability.

Gerdau Ameristeel says it will recall employees in stages in order to meet business needs. The Beaumont rolling mill has been operational since October.