Despite Strong Profits, Kansas Gas Service Asking Workers to Sacrifice

Workers in Kansas, Oklahoma
Without Contract Since June

Contact:  Emil Ramirez, 816-836-1400 (O), 785-806-3106 (M)

Overland Park, Ks. – Despite years of strong profits and the highest level of service by employees, Kansas Gas Service continues to ask workers in Kansas and Oklahoma to sacrifice pay, health care coverage and pension benefits. 

Contract negotiations have broken off between the company, whose parent’s earnings total nearly $1.5 billion over the last four years, and the United Steelworkers, which represents 380 Kansas Gas Service employees in the two states. No new talks have been scheduled.

Workers at USW Local 12561 in Overland Park and Topeka, Kansas; Local 13417 in Wichita and Hutchinson, Kansas, and Local 14228 in Pittsburg Kansas and Bartlesville, Oklahoma have extended the current collective bargaining agreement twice since the original expiration of June 30th and are now working day to day.

“The USW-represented employees of Kansas Gas Service continue to work hard every day to provide the highest-quality service for the company and its customers, despite not having a new contract,” said Robert Bratulich, Director of USW’s District 11, which covers Minnesota, Iowa, Kansas, Missouri, Montana, North Dakota, Nebraska, South Dakota and Wyoming.

“Our members have sacrificed in the past to help the company succeed. Over the last five years, the union implemented cost saving measures to the healthcare plan and as a direct result, the Company realized $1.4 million in healthcare savings.  Our members are a big part of what makes the company work and they deserve to be fairly compensated for their contributions,” Bratulich said.

Kansas Gas Service is owned by Tulsa, Ok.-based ONEOK, a Fortune 500 natural gas company that has more than two million customers in Oklahoma, Kansas and Texas. During the last round of negotiations in 2004, USW members agreed to minimal pay increases, no increases in health care and to the elimination of post-retirement health care for new hires.

Over the next four years, ONEOK benefitted from steady profits: $546.5 million in 2005; $306.3 million in 2006; $304.9 million in 2007 and $311.9 million in 2008. Kansas Gas Service had operating income totaling $247 million during that time, including $88.4 million last year.

But the company continues to ask workers to sacrifice at the bargaining table.

“Our union is willing to work with Kansas Gas Service and ONEOK and wants to continue to be part of the company’s success. However, we will not accept a substandard agreement while the company’s profits continue to rise. It’s just not right,” Bratulich said.

The USW represents 850,000 workers in the U.S. and Canada employed in the industries of metals, rubber, chemicals, paper, oil refining and the service sector. For more information: www.usw.org/.

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