Awhile back, I wrote about the potential of a strike at the place I work for. The labor contract for the hourly workers was set to expire at midnight on September 1, 2008. In fact, we were only four hours away from walking off the job (not me personally, because I got off at 7 PM). When we left work on August 31st (our scheduled shift had just ended) - we were basically resigned to the fact that a deal would not get done before the deadline approached. Officials that represent our union released a memo to all employees stating that the company was unwilling to settle to our demands, no additional negotiations were scheduled for the remainder of the day and to expect a strike. News that was so promising earlier in the day quickly went in the other direction and so did our moods. Of course we knew nothing was a done deal when we started our shift. But with the steel industry being so strong right now and the company earning record profits - how could we not share in some of that profitability? Not taking a chance that the contract could expire, management decided to shut down the plant well in advance of the contract expiring. It takes awhile to get everything down and flushed out - which is what took us to get everything down within our 12-hour shift on the 31st. It was nice to hear that it would soon be starting back up later that evening.
It's really kind of funny how things transpired that evening of the 31st. I came home after work, obviously frustrated of the news regarding the contract impasse. So I started to sit down and write a blog regarding the situation. I got two paragraphs written when I decided to take a break. I made a phone call home to my parents to let them know about what I had heard from work earlier in the day. As I'm sure some of you know, my dad also works at the same place I work. So I knew he'd be interested in knowing any news that I might have to share. I just got off the phone with my mom when I decided to check a few of the local media websites to see if they had any updates on the contract situation. No updated news yet, so I decided to check one of our sister union's website to see if there was any updates. And at the very top of the page, it read "tentative contract." I was baffled, confused, excited, and bewildered. There was a tentative contract afterall. I was particularly glad to know that I could have peace of mind knowing I had a place to go to work the next day and for the next four years to come, at least. But at that point, I had basically resigned myself to the fact that there wouldn't be a settlement and I'd be on strike the next day - especially when you consider the memo the union had released earlier in the day. So there was a tad bit of a let-down for me, as well. September 1 was Labor Day, afterall. I wouldn't have minded a few days off, I guess. But knowing we have a tentative contract in place and life can go on as normal, that was definitely a nice fact.
So I had to hurry up and call back my mom and let her know the latest news - that both me and my dad could go to work the next day afterall. This was only 15 minutes after I initially called her to say we'd probably be on strike. Obviously she was very happy, too. But it was incredible to experience the whirlwind of emotions that took place on that day. Who knew that being in a unionized work force could do that to a person. But what confused me the most out of this was the union saying to expect a strike, that the company had submitted it's last, best, and final proposal and no additional negotiations were expected the rest of the day. Obviously something changed dramatically soon after that memo was released to the employees in the union. Our new labor agreement is supposed to mirror several other agreements that have been reached between other sister steel companies and their repective unions that were settled within the last month. So taking that fact into consideration, it sounds like the new contract is an improvement over the old - which is what we're hearing. Not all of the details of the new deal have been announced and ratification of the contract may not take place until another two to three weeks. But the vote is coming. Small snippets of the deal seem to be released a little bit each and every day.
So there you have it - labor peace has been reached within our local iron range for another four years until this latest deal is set to expire. Now that could quickly change if the contract doesn't get ratified, but it's quite likely it will. That's kind of the way it goes when you work in the steel industry - always expect the unexpected. Cause you never know exactly when things are going to change. I know one thing is for certain, never take anything for granted, either.
Showing posts with label strike. Show all posts
Showing posts with label strike. Show all posts
Sunday, August 31, 2008
Tuesday, July 29, 2008
Steel
It's amazing how quickly things can change in a matter of years; especially if you look at the steel industry in the United States. Earlier this decade, the steel mills and iron ore mines across this nation were struggling big time. Many were closing up completely or companies were consolidating. When I was a summer student were I currently work in 2003, we were amongst a large group of our fellow hourly workers where a group of management told us how bleak things looked for the future and how we'd probably only sustain another five years of operations. Now fast forward to today - where we can't make enough steel for demand. Prices for steel are through the roof and continue to go higher. Look at scrap iron across this nation, the money for such commodities is incredible. And guess who we have to thank for this? The Chinese, of course!
The mine where I work has always been targeted for closure even when I was a summer student. When the steel industry was going through a rough patch in 2001, the company made numerous cutbacks and nearly shuttered the mine completely. You can bet they're glad they didn't. Now, old grinding mills that haven't ran for close to two years are being brought back to life. Basically when they were shut down for mechanical problems, they were deemed too unimportant to fix and re-start. We were doing just as good focusing on the grinding lines we had running and repairing those on a timely basis. Now it appears we need every grinding line we can get. The company has contracted out the work on these two particular lines and contractors are all over the place repairing corroded structural steel, installing new equipement, and basically making these grinding lines like brand new. It's an amazing transformation to the old mill and I kind of find myself in amazement to see it all happen. Additional grinding lines are also being looked at to see if they can be brought back into the system as well; but those require much more extensive repairs since they've been down much longer than a couple of years. In addition, our plant has two filter bays - an old side and a new side. On the old side, several of the old filters have been shut down for years because the tank that holds the slurry before it gets dried had become too corroded and were rusted out very badly. The company is installing three new filter tanks, allowing us to filter much more dirt. We also need vacuum in order to dry out the dirt as they are filtered in the filter bay. One of the components that allows us to do this is running vacuum pumps. Many of the vacuum pumps on the old side are old - circa 1950's and 1960's and when they break down, parts end up being hard to come by because those pieces of equipment are basically obsolete. So the company has purchased a brand new vacuum parp - a much more modern version that's over twice the size of our older pumps which should increase our vacuum capacity greatly. It's so great to see this much work being completed in the old mill. Heck, in three short years, we were scheduled to close. Now would the company be putting this much money into the plant if we were going to close then?
But of course, the company did hold an important news conference about a month back annoucing the expansion at our mine. The life of the mine has been extended until at least 2018 - and I've got to believe it'll be longer than that. And it's also rather hard to believe that in almost a month, our current labor contract will expire. As of now, a new contract has not been reached but probably the most suprising thing of all - none of us have heard a thing about how contract negotiations are going, whether it looks like we're going to strike or not, or if the company plans on hiring scabs to run the facilities if we go on strike. Because the way it looks right now, all indications are that management will run the two mines in our area with scabs or salary personnel. It's actually amazing how different the mood of the employees is between 2004, when the last contract was hammered out to now. I mean, the company is making billions of dollars and the morale of the employees, for the most part, is good. Now, that's not to say that things could change very quickly in just a matter of days. That's the funny part about where I work - one day things are so positive and everyone's sprits are high, then the next day everyone is down in the dumps because of some negative rumors. It's like a rollercoaster ride; you never know which part of the track you'll be on from day to day.
So needless to say, things at work right now are quite positive. I know I've discussed the contract situation in this blog in the past and the uncertainty that awaits everyone working in the mines. I wouldn't say the uncertainty has diminished completely; but it's diminished a lot. I would be quite surprised if we end up on strike considering how well the company is doing and the amount of work that is occuring within the plant itself. But in this day of shrinking pensions and eliminated health care plans, you never know. I know we're looking at the opposite end of the spectrum with this comparison, but look at GM. They were once the pride of America. Now they are struggling to stay afloat and are taking the medical coverage away from their retirees. The company that I work for just might follow that trend despite the good times that we're currently in. But that's what we have a union for; to fight to save those important issues. Do I expect to have a pension when I retire in 2030 or beyond? Probably not; but that's what my 401K is for. Always expect the unexpected in the steel industry.
The mine where I work has always been targeted for closure even when I was a summer student. When the steel industry was going through a rough patch in 2001, the company made numerous cutbacks and nearly shuttered the mine completely. You can bet they're glad they didn't. Now, old grinding mills that haven't ran for close to two years are being brought back to life. Basically when they were shut down for mechanical problems, they were deemed too unimportant to fix and re-start. We were doing just as good focusing on the grinding lines we had running and repairing those on a timely basis. Now it appears we need every grinding line we can get. The company has contracted out the work on these two particular lines and contractors are all over the place repairing corroded structural steel, installing new equipement, and basically making these grinding lines like brand new. It's an amazing transformation to the old mill and I kind of find myself in amazement to see it all happen. Additional grinding lines are also being looked at to see if they can be brought back into the system as well; but those require much more extensive repairs since they've been down much longer than a couple of years. In addition, our plant has two filter bays - an old side and a new side. On the old side, several of the old filters have been shut down for years because the tank that holds the slurry before it gets dried had become too corroded and were rusted out very badly. The company is installing three new filter tanks, allowing us to filter much more dirt. We also need vacuum in order to dry out the dirt as they are filtered in the filter bay. One of the components that allows us to do this is running vacuum pumps. Many of the vacuum pumps on the old side are old - circa 1950's and 1960's and when they break down, parts end up being hard to come by because those pieces of equipment are basically obsolete. So the company has purchased a brand new vacuum parp - a much more modern version that's over twice the size of our older pumps which should increase our vacuum capacity greatly. It's so great to see this much work being completed in the old mill. Heck, in three short years, we were scheduled to close. Now would the company be putting this much money into the plant if we were going to close then?
But of course, the company did hold an important news conference about a month back annoucing the expansion at our mine. The life of the mine has been extended until at least 2018 - and I've got to believe it'll be longer than that. And it's also rather hard to believe that in almost a month, our current labor contract will expire. As of now, a new contract has not been reached but probably the most suprising thing of all - none of us have heard a thing about how contract negotiations are going, whether it looks like we're going to strike or not, or if the company plans on hiring scabs to run the facilities if we go on strike. Because the way it looks right now, all indications are that management will run the two mines in our area with scabs or salary personnel. It's actually amazing how different the mood of the employees is between 2004, when the last contract was hammered out to now. I mean, the company is making billions of dollars and the morale of the employees, for the most part, is good. Now, that's not to say that things could change very quickly in just a matter of days. That's the funny part about where I work - one day things are so positive and everyone's sprits are high, then the next day everyone is down in the dumps because of some negative rumors. It's like a rollercoaster ride; you never know which part of the track you'll be on from day to day.
So needless to say, things at work right now are quite positive. I know I've discussed the contract situation in this blog in the past and the uncertainty that awaits everyone working in the mines. I wouldn't say the uncertainty has diminished completely; but it's diminished a lot. I would be quite surprised if we end up on strike considering how well the company is doing and the amount of work that is occuring within the plant itself. But in this day of shrinking pensions and eliminated health care plans, you never know. I know we're looking at the opposite end of the spectrum with this comparison, but look at GM. They were once the pride of America. Now they are struggling to stay afloat and are taking the medical coverage away from their retirees. The company that I work for just might follow that trend despite the good times that we're currently in. But that's what we have a union for; to fight to save those important issues. Do I expect to have a pension when I retire in 2030 or beyond? Probably not; but that's what my 401K is for. Always expect the unexpected in the steel industry.
Friday, January 18, 2008
A Year of Rumors
As I said in one of my earlier blogs, 2008 could be a very interesting year for me. Probably the biggest wildcard for me this year would be at work, where a number of things may or may not happen. Our union's contract with the company expires on September 1, 2008. I experienced the company's last contract negotiations back in 2004 when I was a summer student and I can tell you, it was something I'll never forget. At that time, the company "threatened" to hire replacement workers to run the mine - so the word "scab" became a frequently used word throughout the mill; written on bathroom stalls and basically anything that could be written on. There were many rumors flying around about bringing in immigrants to run the plant. The company even planned to house the replacement workers on mine property as they started bringing trailers on company property a week prior to the strike deadline. Needless to say, the union never did strike as a contract was approved three days prior and ratified a week later. But, who's to say that'll happen this year.
The mine that I work at is on its last legs; I guess you could say. It has been in operation since the late 1960's and has mined millions of tons of iron ore from its large open pit. The ore reserves are expected to be exhausted by the year 2010, meaning the mine would be subject to closure if back-up plans weren't in place. Probably the biggest news that breathed new life into the old mine was the annoucement of a nugget plant that would be built near the old mine facility. It would create a ton of new construction jobs and would produce about 500,000 tons of nuggets a year. The nuggets are different from the pellets that we currently make. It's a completely different process used to create the nuggets; one that I am still quite fuzzy on. It basically re-invigorates the process used to create iron ore by incorporating new technology and equipment into the mix. This was all great news to those that work at the mine and was something that really rose the spirits of not only the employees, but for community members as well. But eventually we found out about the company's true intentions of the nugget plant and soon the picture wasn't as rosy as we invisioned.
The nugget plant would basically operate as its own company and be managed by the current company that operates the current mine. None of us that are employed with the mine would be eligible to work unless we quit first and then tried applying at the new plant. And what exactly are the chances that any of us would get hired at this new plant? The control room operator of the plant would be a salaried position and there would be no retirement plan in place. So for those of us that are currently employed with the existing mine, this really doesn't not sound all that appealing; not as great as it earlier seemed. I guess many of the details are still being worked out and many things are subject to change. Hopefully there is a better outcome to this than there is at this moment.
So the mine is running out of ore reserves in its pit, which would mean the possible closing of the facility by 2010. It has already been annouced earlier this month that the mine will be cutting back on its production; going from a 5.0 million ton operation to 2.8 million tons. Currently the mine is operated into four sections; one section being the original plant and the three other sections being additions made to the original structure. We only run one grinding line in the original plant, while section number two, three, and four have many grinding lines running. After June 2008, only the grinding lines in the fourth section of the plant will be running, with a few limited mills running in the third section. This is a dramatic cutback to how things are running now. With that news comes the likelyhood of cutbacks in staffing at the plant. It has already been rumored that 20% of operating (the department I am in) will be eliminated by the second half of the year. So as you can see, this could be a very tumultuous time for many people that work at the mine. But honestly, a lot of things could change between then and now.
There are some people who believe every little thing that comes out of the mouth of the company and there are those who choose to be resilient in these times of adversity. There are a lot of "positive" rumors out there including that we'll continue to maintain our current production levels throughout all of 2008. But then there are also other rumors that include us running more than one flux mill (flux stone is used in the production of iron ore pellets), which will help to supply our mill, the neighboring mine, and the new nugget plant with flux. There is also talk that additional ore reserves have been found and they are in the initial testing stages to see whether our facility can create pellets from these ore bodies. The point of all of this is that rumors are flying rampant all of the time regarding the mine's future. You just don't know what to believe until something really happens. I remember when I was a summer student in 2003 and they only gave the mine five more years in which we could process iron ore. It's five years later now and we anticipate running until 2010 at least; except at reduced capacity. So needless to say, things can change in a hurry. I am not going to worry about the impending doom and gloom. I'll believe it when it actually happens. When you work in the steel industry, you always experience your ups and downs. That's how it's been for my dad during his 35 years of employment. There were a couple of different times where he thought he'd never go back to the mine. But things change and the industry changes. Right now the price of metal is incredibly high. As long as this trend continues, the company is going to find any little way in which they can produce ore at our facility, whether it'll be using our current methods or implementing new technological advances. Time will tell what actually happens at our facility. Right now, all we can do is take it one day at a time.
The mine that I work at is on its last legs; I guess you could say. It has been in operation since the late 1960's and has mined millions of tons of iron ore from its large open pit. The ore reserves are expected to be exhausted by the year 2010, meaning the mine would be subject to closure if back-up plans weren't in place. Probably the biggest news that breathed new life into the old mine was the annoucement of a nugget plant that would be built near the old mine facility. It would create a ton of new construction jobs and would produce about 500,000 tons of nuggets a year. The nuggets are different from the pellets that we currently make. It's a completely different process used to create the nuggets; one that I am still quite fuzzy on. It basically re-invigorates the process used to create iron ore by incorporating new technology and equipment into the mix. This was all great news to those that work at the mine and was something that really rose the spirits of not only the employees, but for community members as well. But eventually we found out about the company's true intentions of the nugget plant and soon the picture wasn't as rosy as we invisioned.
The nugget plant would basically operate as its own company and be managed by the current company that operates the current mine. None of us that are employed with the mine would be eligible to work unless we quit first and then tried applying at the new plant. And what exactly are the chances that any of us would get hired at this new plant? The control room operator of the plant would be a salaried position and there would be no retirement plan in place. So for those of us that are currently employed with the existing mine, this really doesn't not sound all that appealing; not as great as it earlier seemed. I guess many of the details are still being worked out and many things are subject to change. Hopefully there is a better outcome to this than there is at this moment.
So the mine is running out of ore reserves in its pit, which would mean the possible closing of the facility by 2010. It has already been annouced earlier this month that the mine will be cutting back on its production; going from a 5.0 million ton operation to 2.8 million tons. Currently the mine is operated into four sections; one section being the original plant and the three other sections being additions made to the original structure. We only run one grinding line in the original plant, while section number two, three, and four have many grinding lines running. After June 2008, only the grinding lines in the fourth section of the plant will be running, with a few limited mills running in the third section. This is a dramatic cutback to how things are running now. With that news comes the likelyhood of cutbacks in staffing at the plant. It has already been rumored that 20% of operating (the department I am in) will be eliminated by the second half of the year. So as you can see, this could be a very tumultuous time for many people that work at the mine. But honestly, a lot of things could change between then and now.
There are some people who believe every little thing that comes out of the mouth of the company and there are those who choose to be resilient in these times of adversity. There are a lot of "positive" rumors out there including that we'll continue to maintain our current production levels throughout all of 2008. But then there are also other rumors that include us running more than one flux mill (flux stone is used in the production of iron ore pellets), which will help to supply our mill, the neighboring mine, and the new nugget plant with flux. There is also talk that additional ore reserves have been found and they are in the initial testing stages to see whether our facility can create pellets from these ore bodies. The point of all of this is that rumors are flying rampant all of the time regarding the mine's future. You just don't know what to believe until something really happens. I remember when I was a summer student in 2003 and they only gave the mine five more years in which we could process iron ore. It's five years later now and we anticipate running until 2010 at least; except at reduced capacity. So needless to say, things can change in a hurry. I am not going to worry about the impending doom and gloom. I'll believe it when it actually happens. When you work in the steel industry, you always experience your ups and downs. That's how it's been for my dad during his 35 years of employment. There were a couple of different times where he thought he'd never go back to the mine. But things change and the industry changes. Right now the price of metal is incredibly high. As long as this trend continues, the company is going to find any little way in which they can produce ore at our facility, whether it'll be using our current methods or implementing new technological advances. Time will tell what actually happens at our facility. Right now, all we can do is take it one day at a time.
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