Still Waiting: As Union Hand Strengthens, Latrobe Steel Fails to Respond to Steelworker Proposal;

“Time is Now” for Private Equity Owners to Intervene

Contacts: Howard Scott, USW 412-562-2521
               Kevin Caruso, LU 1537 724-433-7214

PITTSBURGH – Latrobe Specialty Steel is starting to feel the heat from the United Steelworkers campaign to end the lockout and gain a fair and equitable contract for 360 members of USW Local 1537.

Since the USW made its most recent proposal to Latrobe Steel on June 18, USW Local 1537’s position in the dispute has significantly strengthened:

USW changed its Constitution to significantly increase aid and assistance to local unions during strikes and lockouts. The increase in payments to Local 1537 was effective from July 1.
The Pennsylvania Department of Labor & Industry agreed with the Union that Latrobe Steel had locked out members of Local 1537 and so they are eligible for unemployment compensation benefits. The locked out workers received payments retroactive to the beginning of the lockout on May 8 and continue to receive benefits.
Community support for the locked out workers in Latrobe is growing. Residents, public officials and community groups are reaching out to assist the Steelworkers. A billboard campaign has been launched along a nearby heavily traveled highway and thousands of pro-union yard signs are going up around town calling on the company to end the lockout.
As the Union’s position has strengthened, the Company has failed for over three weeks to respond to USW’s latest proposal.

“We provided Latrobe Steel with our latest offer over three weeks ago, and Local 1537 leadership and our staff representative all elected to not go to the USW Constitutional Convention in Las Vegas so that we’d be ready to return to the bargaining table at a moment’s notice. The company never called, and, instead, we heard about their desire to return for bargaining in a press release from Mr. Sack, the company’s president and CEO.” said Kevin Caruso, president of USW Local 1537.

“Rather than respond to our unconditional offer to return to work and our contract proposal, the company has attempted to inflame the situation by putting out a press release full of half-truths, misstatements, and worse. The company needs to end the lockout and come back to the bargaining table!”

“Latrobe Steel demands a contract that one would expect from a company that is in bankruptcy when in fact they have been very profitable in recent years,” said USW International Vice President Tom Conway. “The Union has made offers that meet the company’s legitimate business concerns while also acknowledging the company’s healthy market position.”

Latrobe Steel was acquired by private equity companies Hicks Holdings and The Watermill Group in 2006.

“Latrobe Steel management, feeling the heat from our recent victories and community campaign, is trying to impress its Texas and Boston-based private equity bosses by talking tough in the media,” said Conway. “If Hicks and Watermill want to make money in steel, then the time is now for them to tell Latrobe Steel management to end the lockout and negotiate in good faith.”