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Shop Talk: U.S. Bank says, "Union Yes!"
Sunday, October 24, 1999 By Jim McKay, Post-Gazette Business Writer
Labor unions and their money figure highly in the future of U.S. Bank, the flagship subsidiary of Johnstown-based USBancorp.
So it may be no surprise that the bank recently settled without rancor a new four-year agreement with the United Steelworkers that raises wages for non-supervisory employees and moderates health-care cost increases.
USBancorp plans next spring to spin off its non-union Three Rivers Bank subsidiary into a separate stock and company, freeing U.S. Bank to build on lending relationships it has developed with 26 unions in several states. The transaction is subject to Internal Revenue Service review.
U.S. Bank plans to increasingly emphasize its union niche to build business relationships with labor unions and their members, first regionally and then nationally. "Our new contract is an excellent foundation for this business strategy," said bank president Orlando B. Hanselman.
The $1.4 billion U.S. Bank says it is one of only 13 banks in the country whose employees are unionized. Steelworkers represent 270 of its employees, roughly 65 percent of the total work force.
Wages under the agreement will increase by 3 percent in each of the first three years and by 4 percent in the fourth year. The pact also includes a $250 signing bonus and a 2 percent 401(k) contribution.
The bank agreed for the first time to purchase Highmark Blue Cross Blue Shield health insurance through the union's health and welfare fund. Its estimated employee health care costs will be about $1.6 million next year, up a modest 5 percent. The union agreed to contract language giving the bank more staffing flexibility, including raising the cap on part-time workers to 30 percent of the unionized staff from 25 percent.
"I need a raise, too!"
Eugene Russo, a 76-year-old retiree from Wheeling-Pittsburgh Steel Corp., is on a one-man mission to persuade the government's pension insurer to grant cost-of-living raises.
Russo's pension and the pensions of thousands of others who retired from the once-bankrupt steelmaker are paid by the Pension Benefit Guaranty Corp., a federal agency that insures defined benefit programs.
If Congress can get a raise, Russo asks, why can't he?
But the PBGC has politely turned him down, saying it is not permitted by law to grant cost-of-living adjustments. The agency also does not guarantee early retirement supplements common in the steel industry.
Russo retired from Wheeling-Pittsburgh's Monessen plant in 1985 after 43 years with a monthly benefit of $1,563. The PBGC later assumed the plan, and his monthly checks are now $918 after deductions of $174 for health coverage.
He has collected more than 1,000 signatures on a petition, buttonholed U.S. Rep. Frank Mascara, D-Charleroi, in a supermarket, and cornered members of Republican U.S. Sen. Arlen Specter's staff.
"This whole valley worked in that mill," Russo said. "They're hurting -- every one of them."
All swell at hotels
Hotel Employees Restaurant Employees Local 57 has new agreements with two Downtown hotels -- Pittsburgh Hilton and Towers, and The Westin William Penn.
A two-year agreement with the Hilton raises wages for non-tipped workers by 35 cents an hour each year and 15 cents each year for workers who receive tips. Traditional vacation and holiday benefits were replaced with a time-bank concept for the hotel's 275 union employees.
The Westin William Penn came close to a strike by 300 employees but ultimately settled a three-year deal that raised wages 35 cents in the first year for tipped workers and 15 cents for non-tipped employees. Raises are 30 cents and 10 cents in each of the final two years.
Local 57 President Ed Nassan described the wage hikes as the best ever negotiated at the two hotels.
Other stuff ...
PSEA Healthcare, a unit of the Pennsylvania State Education Association, has petitioned the National Labor Relations Board for an election to represent 350 nurses at Washington Hospital. Registered nurses and technicians at Uniontown Hospital will consider the PSEA in a vote scheduled this Tuesday ... A judge last week directed striking members of the Bakery, Confectionery and Tobacco Workers Local 12 to stay 15 feet away from buses that carry replacement workers into the Altoona plant of Boyer Candy, maker of the Mallo Cup ... Turnpike worker Chris Merck has been elected secretary-treasurer of Teamster Local 250, replacing long-time union leader Bill Gross. He takes office Nov. 1 ... Two locals of the Glass Molders, Pottery, Plastics and Allied Workers union settled a new contract with Crown Cork & Seal in Connellsville that provides for employee skill training and pay raises for those who participate. Some layoffs are expected at the plant, which employs about 400 and makes metal closures for the pharmaceutical, beverage and food industries.
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