CANTON, Ohio, Feb. 7, 2012 /PRNewswire/ -- The Timken Company and the United Steelworkers (USW) Local 1123 today announced they have reached a new tentative agreement on a five-year contract to replace the existing labor agreement, which expires Sep. 2013. Members will vote on the new agreement, which is unanimously supported by local USW negotiators, within the next two weeks.
The parties reached a preliminary agreement in December, but union membership failed to ratify the proposal in a January vote, putting at risk a multi-million dollar investment in Stark County (Ohio). Timken is prepared to invest $225 million in its Faircrest Steel Plant if a new labor agreement is ratified.
"We have outlined a very attractive investment for our steel operations," said Salvatore J. Miraglia, Jr., president of Timken's Steel Group. "But it clearly will not move forward without a new agreement that ensures workforce stability throughout construction and startup. The vote will be our final opportunity to put the pieces in place to make this investment happen."
The project has received state and local assistance, in return for Timken's commitment to job security at the plant during the term of that support.
The tentative agreement continues to provide:
Increases to permanent base wages every year, in addition to cost-of-living adjustments;
Increases in both variable pay opportunities and incentive pay;
Improvements in health and wellness plans;
Increases in pension benefits;
And, includes changes to the wage escalation rate for new employees.
Other News:
Timken and United Steelworkers of America Local 1123 Reach New Tentative Agreement
Timken Raises Dividend by 15 Percent; Approves Increased Stock Buyback Authorization Plan
Nook Recognized for Operational Excellence
Bearing Resources Receives First Royalty Payment From Imperial Metals
SKF Signs SEK 150 Million Contract with Scania
NSK Achieves 40% Cost Reduction for Welding Gun Manufacturer
Gerhard Schubert and Bosch Rexroth Sign Agreement for Packaging Machines
Atlanta Drive Expands Rack and Pinion Systems
