ATI changes contract proposal following expiration of offer to United Steelworkers

As promised, Allegheny Technologies Inc. has changed its contract offer to the United Steelworkers after the striking union did not accept the company’s proposal by a Monday deadline.

ATI had given the union until 5 p.m. Monday to accept the four-year offer made April 20 or else it would replace it with one the company said reflects the costs it is incurring because of the strike, which began March 30.

Union negotiators rejected the ultimatum Thursday, calling the tactic bullying and accusing the company of “trying to force acceptance of its latest, take-it-or-leave-it, bad-faith offer.”

In a bargaining update, the USW said its local presidents voted unanimously against taking the offer to its members for a vote.

“Rather than bargain in good faith, ATI still seeks to divide steelworkers,” the union said in an update to its members Monday calling on them to remain united.

On Tuesday, ATI spokeswoman Natalie Gillespie said the company’s offer “expired without acceptance.” No talks are scheduled, she said.

In a message to employees, ATI said its new offer reduces a lump-sum payment in the first year from $4,000 to $2,500. Wage increases of 3% in the second, third and fourth years remain.

The company said its proposal is otherwise unchanged.

“We reduced the lump-sum payment — one of the first parts of our proposal we’d need to pay — to begin to reflect a portion of the costs we’ve already incurred,” the company’s statement said.

ATI said the revised offer does not immediately have an expiration date.

“It is our hope that the USW will return to the table and help us to reach an agreement that rewards our employees and positions ATI for success,” it said. “If we fail to make progress, we’ll re-evaluate the need for an expiration and communicate that decision in advance.”

In its bargaining update, the union claims ATI is unable to fulfill existing customer orders and must pass on new business because of the labor dispute.

Gillespie said ATI is delivering on orders and securing new business, using salaried employees and replacement workers to restart operations and ramp up production.

“We have partnered with our customers to understand their needs against our projected capacity, prioritizing what is most crucial to them,” she said.

“Our production ramp is focused on minimizing the long-term impact on our customers,” she said. “We are on track to meet or are ahead of our ramp plan in most plants and working to close the gaps where they exist.”