LEONARD GRAY / L’Observateur / October 18, 1999

LAPLACE – Bayou Steel and the United Steelworkers of America approved a new contract which boosts pay and benefits three years prior to the expiration of the current contract, resulting in a new seven-year contract, effective through October 2006.

Bayou Steel’s vice-president of human resources, Hank Vasquez, said, “This agreement underscores the confidence of both employees and the company in Bayou Steel’s financial condition and in the substantially improved relationship between the company and union.”Such was not always the case.

The 42-month-long Bayou Steel strike, which ended in September 1996, often pitted strikers and the company against each other in vocal and sometimes violent confrontation.

The battles ranged from the picket lines to the courtrooms and ended with a settlement announced Sept. 23, 1996, on a new six-year package.The new contract agreed upon Thursday is a complete turnaround from relations with the past, Vasquez said.

“It’s refreshing to work with leadership that wants to solve problems. Youcan’t help but want to bend over backwards to want to help someone,” Vasquez commented.

USWA Local 9121 President Kim Duhe added, “This new contract gives immediate recognition and reward to the 115 longer-term employees through the 20-year vacation bonus and the 401k plan that gives senior employees 5 percent of their pay each year.”That is in addition to their current pension and 401k benefit plans.

Provisions of the new contract include: Team-based production incentives changed to increase the reward to employees for greater productivity.

A progressive pay structure for 264 which rewards employees for developing additional skills and competencies with more pay.

The remaining 65 employees not covered in the progressive pay structure to receive base-pay increases, ranging from $1 to $1.20 per hourover the life of the contract, as well as opportunities to move into higher- paying jobs.

A supplemental retirement 401k being established, with the company making contributions of up to 5 percent of an employee’s annual base pay, based on a combination of age and years of service.

Increase in life insurance by 50 percent.

Employees of more than 20 years will receive an annual vacation bonus of one week’s base pay, in addition to their present vacation benefit.

The new package stemmed from a mutual desire by the company and the union to stem the flow of employees to the petrochemical industry in pursuit of additional pay and benefits.

“We looked at our whole benefit package,” Vasquez said, adding as well that the “pay-for-knowledge” program derives from an employee survey conducted last year to provide incentive to not only stay longer with the company, but to acquire new skills and knowledge.

Union official Francis Melancon added, “This contract provides the basis to increase economic benefits for a majority of the bargaining unit’s members and better support the good working relationship being developed by the company and local union leadership.”Vasquez added, “We still have lots of problems and issues, but now they just come in and talk with us. There’s no beating on tables and makingthreats.”Melancon continued, “The parties fully recognize that this improved relationship benefits the employees immediately, without the uncertainty of negotiations three years from now.”The contract will provide $1.5 million in additional annual benefits at theLaPlace steel mini-mill.

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