REPORT OF PRESIDENT MARK GRANAKIS
Although business conditions remain stable, there is no rapid growth for the plant. Rumors are circulating about the restart of #2 Steel Shop. As of this writing, the company has not approached me about this. Restarting this facility would be a difficult task because of the number of people who have retired from there. However as always, we would meet the challenge and get it done.
On the same note, the company has not spoken with me about restarting any other facilities (Box Anneal, Slitter, etc.) in Finishing at all this year. As dictated by the Hot Dip Line, they will continue to sporadically run some coils on the Temper Mill.
Arbitration
On January 12th and 13th, we had arbitration for our grievance on the Layoff Minimization Plan for the layoffs that occurred in December 2008. I would like to take this opportunity to thank Director McCall for doing an outstanding job presenting our case. Thanks also to Pat Gallagher for helping McCall present the case. I do not expect a decision from the arbitrator for at least 2–and probably 3–months.
We also have arbitration slated for February for the elimination of the 10% production bonus during that same time frame.
Partnership Meeting
As provided for in the labor agreement, a partnership meeting was called for and held in Chicago the 1st week of January. I did not hear anything new there other than the company stating they realized the partnership was strained – and continues to be so – during this economic downturn.
I continue to believe that rather than make autocratic decisions, the company should have sought help from their partner, the Union, which may have made it less painful for our members.
While I have not given up on the partnership in Cleveland, I remain skeptical about this company’s sincerity in wanting a True Partnership. Stay tuned for further details.
Holidays
Although the company chose not to issue gift cards during the recent holiday season, the Local Union opened its heart as well as its checkbook to send $50 gift cards to our sick and injured members as well as our forcibly laid off members. Once more, this proved the brotherhood and sisterhood that exists within our Local.
I know these cards were appreciated since we received many phone calls and thank you notes from these brothers and sisters.
Pension Letter
A lot of questions have been asked about the recent letter from the Steelworker Pension Trust about amortization. Here is a brief explanation of what it means.
The Notice of Application for an Extension of Amortization Period was sent to all Steelworker Pension Trust (Trust) participants for informational purposes only. You do not need to do anything. There is no impact on your pension and the Trust is not in jeopardy in the foreseeable future. The Trust is obligated by law to send out the Notice when considering whether to apply to the Internal Revenue Service (IRS) for an extension of the amortization periods used by the Trust’s actuary in valuing the fund. In fact, the language of the notice is provided by the IRS with the Trust plugging in the values specific to this fund.
What are amortization periods? When the Trust experiences gains or losses in its investments or when the Board of Trustees increases or decreases future benefits provided under the plan (which in turn increases or decreases the future liabilities of the Trust – higher future benefits = more future liability [a loss] – lower future benefits = lower future liability [a gain]), those gains and losses are permitted under the law to be spread out over a fixed period of time (the amortization period). This allows the Trust to smooth out sharp peaks and valleys in each year’s net gains or losses and provides a clearer picture and a more effective projection of long-term fund performance.
What is the effect of extending the amortization period? By extending the amortization period, the Trust’s gains and losses are smoothed out over a longer period of time, so that the net gain or loss each year will be smaller. This is analogous to refinancing the balance of a home mortgage over a longer period of time so that the monthly payments will be smaller.
Again, I want to stress, our pension is not in jeopardy. The notice is simply informational, and no action is required by you.