United Steelworkers begin strike at Allegheny Technologies, Inc.; reject's ATI's last-minute counter offer

The United Steelworkers began a strike against Allegheny Technologies Inc. on Tuesday, marking the first such action against the company in nearly three decades.

Some workers have been with the company long enough to remember the last strike 27 years ago, but Harrison’s Jeff Allenberg, 41, was hired at ATI’s Brackenridge facility in December 2018. Allenberg said he left a job of 19 years to take an ATI maintenance position that he thought would be his “retirement job.”

Instead, he was laid off in January. On Tuesday morning, he picketed with other union members outside the Harrison plant.

“Here I am out on the street,” he said. “I’m here to support everybody. I’m hoping for the best. Maybe I’ll get back to work.”

The union has accused ATI of engaging in unfair labor practices and seeking economic and contract language concessions from about 1,300 union members at the company’s nine facilities.

ATI spokeswoman Natalie Gillespie disputed the idea the company is seeking concessions, arguing instead that the company’s offer isn’t “rich enough” for the union.

Gillespie said ATI will continue operations by using nonunion employees and temporary replacement workers.

She did not comment when asked for the status of ATI’s facilities Tuesday.

‘We have to make our stand’

The USW on Friday announced its intention to strike, which members authorized in March. Negotiators for the company and union met until 10:30 p.m. Monday but were unable to reach an agreement, said Todd Barbiaux, president of Local 1196, which represents about 450 workers at ATI’s Brackenridge facility in Harrison.

“It’s very unfortunate, but we have to make our stand,” Barbiaux said. “I think this company woke up a sleeping bear. We’ve had enough. We’re not looking to get rich. We just want a fair wage. We want to preserve our jobs.”

USW members at ATI have not had a pay increase since 2014.

“When you haven’t gotten a raise in seven years, you’ve got to do what’s right,” said Dave Brestensky, 54, an electrical technician from South Buffalo and member of Local 1196. “They have said we lost money the last three months of 2020 (and then) turned around and gave themselves huge bonuses. If they are losing money, that’s wrong.”

An ATI employee for 29 years, Brestensky had a month-old son during the 1994 strike, which ran for 69 days. He remembers it as scary.

“I just had my son. I didn’t know what I was going to do,” he said.

Brestensky said he found other temporary work and got through it.

“It’s still nerve-wracking,” he said of being on strike. “My kids are older. I don’t have to worry about diapers. I still have bills to pay.”

Fresh from his 12-hour shift overnight Monday as a temper mill helper in Vandergrift, AJ Harkins of Washington Township said he’s tired of ATI’s top executives getting bonuses.

“The upper bosses are always getting these big bonuses and all that,” Harkins said. “They keep chopping at the bottom and keep taking up top. It kind of gets hard after a while.”

Harkins was among about 80 steelworkers from USW Local 1138 outside the gate of ATI’s Vandergrift plant on Lincoln Avenue.

“The proposals that have been given by the company we just don’t feel like have been fair,” said Local 1138 President Keith Beavers, of West Leechburg. “We’re fighting for a better future against unfair labor practices.”

Mark Gibson, 57, of Kittanning Township is a crane operator in Harrison. A 29-year employee, he went through the previous strike and a six-month lockout that started in 2015.

“You’d think this company would learn something by now,” he said while picketing outside Gate 6 in Harrison. “When we came back from the lockout, we felt optimism. It felt like the company and the union were moving forward in a good, positive direction. Now, it feels farther apart.”

Worker morale is low, Gibson said.

“We worked through the pandemic. We didn’t have a choice,” he said. “My union brothers and sisters worked through the pandemic to keep this company alive, and now we’re out on the street.”

The last contract between the union and ATI expired at the end of February, following a one-year extension.

“We are willing to meet with management all day, every day, but ATI needs to engage with us to resolve the outstanding issues,” said USW International Vice President David McCall, who chairs the union’s negotiations with ATI. “We will continue to bargain in good faith, and we strongly urge ATI to start doing the same.”

ATI’s 11th-hour offer

ATI made another contract offer to the union Monday night.

“Last night, we further improved our proposal in hopes of averting a work stoppage,” Gillespie said. “With such a generous offer on the table — including 9% wage increases and premium-free health care — we are disappointed for this action, especially at such an economically challenging time for ATI.”

Gillespie said the company addressed union concerns about additional layoffs by removing all proposals related to contracting out work and combined elements of previous union and company proposals on health care.

“All other employees at ATI — including represented employees and even those covered by three other USW bargaining units — pay premiums for their coverage. Employees at our competitors — again, including those represented by the USW — pay premiums, giving them a competitive advantage over us,” Gillespie said. “It’s time for employees represented under this master contract to pay premiums, too.”

The company would increase wages through a $4,000 lump sum payment in the first year and 3% increases in each of the second, third and fourth years of the proposed agreement.

Gillespie said an employee earning $75,000 today would see their pay increase by nearly $11,000 over the term of the contract.

“ATI will spend more on our employees over the term of this agreement, not less,” she said. “We are seeking cost savings to help offset some of the increases.”

There would be no changes to pensions or benefits for current retirees, she said.

“These high legacy costs create a competitive disadvantage for us,” Gillespie said. “Every active USW member is working to support at least four retirees. In 2021, we’ll contribute $87 million to the ATI pension plan. In 2020, we contributed $130 million.”

USW spokesman Tony Montana said he could not comment on ATI’s latest offer. He said the union “will respond to ATI at the bargaining table.”

Staff writer Joyce Hanz contributed.