On verge of strike, United Steelworkers rally outside ATI's Brackenridge facility - TribLIVE

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Leisa Brothers held up a rubber chicken in one hand, and in her other, a handwritten sign against the management of Allegheny Technologies Inc.: “Corporate greed is killing the American dream.”

“We’re fighting for a fair contract,” said Brothers of Sarver, a United Steelworkers janitor who has worked at the steel plant in Harrison for 28 years. “And they just want to take, take, take. …The future looks bright for them, and they just want to keep it for themselves and not give anything to the workers.”

Beside Brothers stood Connie Ortman, a United Steelworker who retired two years ago after 25 years as a grinder who remains concerned for the ATI employees she left behind.

“This is a union mill,” said Ortman of Kittanning, gesturing to the ATI Brackenridge facility on River Road. “The union is what made this place as great as it is, and they’re trying to take the union out.”

The pair joined more than 100 people who rallied Tuesday afternoon outside Gate 6 of the local plant in support of the United Steelworkers, weeks after the union authorized a possible strike against ATI after a failure to agree on a contract.

Honks blasted from the horns of cars, pickup trucks and tractor-trailers passing by while protesters crowded around a wooden structure plastered with United Steelworkers signs and red lettering that read, “The temperature is rising.”

“I think it’ll put pressure on the company, now that they see this level of unity,” said Todd Barbiaux, president of Local 1196 and a 33-year steelworker. “They’re trying to dismantle a union, and it’s not going to happen. We’re not going to let it happen.”

The company protests the union’s claims it has been “dragging its feet” in negotiating a new contract. ATI argues under its latest proposal, workers would “be better off financially in every year” of the four-year contract.

“While we’re disappointed our employees have authorized a strike,” said ATI spokeswoman Natalie Gillespie, “we continue to work hard to reach resolution.”

Of the union’s negotiators, ATI’s leadership said, “They continue to make demands without providing the cost savings we need elsewhere.”

“ATI is losing money,” the company wrote in a recent statement to employees. “We need to work together to transform our business so we can win as the markets recover. We don’t want a work stoppage.”

Similar United Steelworkers protests were held Tuesday across nine locations in multiple states, including places facing plant idlings. Another rally is planned Thursday at the Brackenridge site.

Union members aim to persuade the global metals company to offer better wages, benefits and conditions. They further protest rule changes they say will reduce overtime and concerns over an increased reliance on outsourced workers.

“We need our solidarity. We need to stick together,” said United Steelworkers International Vice President Dave McCall, who stopped at the local rally, as did state Sen. Lindsey Williams, D-West View, who has an office in Harrison. “You all haven’t had a raise since 2014, and they want to give us a couple of bucks …. It’s just wrong.”

Nearly two weeks ago, 95% of 1,300 United Steelworkers voted to authorize a possible strike against ATI after more than a year of stalled negotiations.

It remains unclear how imminent a stoppage might be.

“Nobody wants a strike, but ATI is leaving USW members little choice,” the United Steelworkers wrote in an update to its members online. “Their bargaining strategy must be a desire to be ‘their way or the highway.’ ”

Disputes over changes to overtime, outsourcing

Twenty-one-year worker Scott Laliberte described ATI’s latest proposal — which includes a $3,000 lump-sum payment and gradual pay hikes totaling 8.5% over four years — as providing “meager rate increases” after a seven-year pay freeze. But he added that to him, it’s not merely “a money issue.”

“And it’s not even so much about paying a little bit more for health care,” said Laliberte, who fixes brick linings in ATI’s steel furnaces as a refractory tech and serves as treasurer on the local union’s board. “It’s the jobs that they want. They want to outsource just about everything here, and the problem with that is we’re losing good-paying jobs to outsourcing.

“The local people of this community are suffering because the good jobs are going away.”

Since 2019, ATI has shed at least 800 jobs companywide from its specialty and standard rolled products operations, company figures show. Employment in the Pittsburgh area will have decreased from 1,700 at the end of 2019 to 1,500 at the end of 2021.

Gillespie said the work rule changes call for contractors, or outside hires, specifically to support “surge and specialized mainentance when needed,” as opposed to widespread use on a permanent basis. ATI also wants to use contractors for “non-core work” such as scrap handling and the vacuum truck.

The overtime changes still would compensate any worker with overtime who works more than 40 hours in a week, according to Gillespie. However, some employees would be asked to work three- or four-day schedules of 12 hours per day and not receive overtime should they work less than 40 hours in a week.

ATI: Retirees will get promised pension, health benefits

The company says retirees are not at risk of losing the pension and health benefits that have been promised.

ATI maintains an account of about $40 million in cash for retiree health costs, Gillespie said. In 2021, ATI will meet its $87 million pension obligation, with an overall net pension liability of $647 million.

“We appreciate our retired employees service and stand by our obligations to them,” Gillespie said. “We need a competitive contract because we have these obligations. We want to make sure this company is able to meet those obligations for many years to come.”

Employees laid off from the Brackenridge No. 3 Finishing Department and Waterbury will be eligible for shutdown pensions immediately upon the ratification of a new contract.

Financial reports disclosed to investors show ATI took a $1.12 billion hit in the last three months of 2020, much of it related to weak demand for products in 2020 and one-time restructuring costs.

Still, executives said in January they were pleased with higher-than-expected revenue. They anticipated strong performance in the second half of 2021 as ATI changes its focus from standard stainless-steel sheets to specialty metals for aerospace, defense and energy clients. Up to $85 million in upgrades will be invested into ATI’s Vandergrift site as part of that transition.

“They got $650 million in their cash drawer right now, and they don’t want to let loose a dime until they can make sure that they can pay the executives millions a year,” McCall said. “This is a good fight for what’s right.”

The union’s last contract with ATI was approved in 2016 after a six-month lockout, the first in the company’s history.

Negotiations for a new contract initially started in January of last year. Dozens of USW members rallied outside ATI’s Harrison facility last February clamoring for better wages and benefits, then in March, both sides agreed to a one-year extension while grappling with the pandemic.

Talks resumed in January of this year, but no progress was made by the time the extended contract expired Feb. 28.

If the union proceeds to strike, it will be the first against ATI since the mid-1990s.

Barbiaux recalled the 1994 work stoppage lasting 69 days.

Natasha Lindstrom is a Tribune-Review staff writer. You can contact Natasha at 412-380-8514, nlindstrom@triblive.com or via Twitter .

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On verge of strike, United Steelworkers rally outside ATI's Brackenridge facility - TribLIVE

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