Severstal reaches new five-year labor deal with UAW

March 31, 2012
Severstal reaches new five-year labor deal with UAW
By DAVID SHEPARDSON / The Detroit News
Severstal North America, the Dearborn-based steelmaker, said late Saturday it reached a new five-year labor pact with the United Auto Workers union.

Severstal – formerly known as Rouge Steel – said the tentative agreement covers 1,100 production and maintainence workers in Dearborn represented by UAW Local 600.

“We are pleased to have reached a new five-year labor agreement which serves the needs of our people and provides a solid base for company’s future development,” said Severstal North America CEO Sergei Kuznetsov. “The new agreement is an important milestone in our relationship with the UAW that was forged over the years and that helps us work toward common goals of our company and our employees.”

The ratification of the agreement is expected to be completed shortly. The company didn’t release details about the agreement.

The steelmaker is a unit of Russian automaker Severstal OAO and is one of the largest flat rolled steel producers in the United States.

The company suffered a setback in January when the Energy Department cancelled a planned $730 million government loan that was to help them build high-strength auto steel — and create 260 jobs and support 2,500 construction jobs. Severstal had spent years in talks with the Energy Department – and had won preliminary approval in July – only to have the government say it would not go forward on the 180th day of due diligence.

The company – which spent more than $3 million during the loan process — said it was deeply disappointed in the decision. The Energy Department hasn’t made any new loans in more than a year from the $25 billion auto retooling program – and many companies say the government’s decisions have been politically motivated.

Energy Secretary Steven Chu said politics has played no role in the government’s decisions in a number of loan requests.

Severstal operates a new state-of-the-art electric arc furnace in Columbus, Mississippi. It also has a jointly-owned coke-making operation — Mountain State Carbon — in Follansbee, West Virginia.

Seniority Lists
Bargaining Committee

Mike Herron
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

Tim Stannard
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts

GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Katherine McGaw
Retiree Chair
Mike Martinez