Closure putting steelworkers back in job market

Small pensions, lack of severance will harm some, employee says

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CHICAGO | A steelworker at Ryerson's 111th Street facility expects to lose his job with "zero chance" of being transferred to Burns Harbor and "zero chance" of being able to live on his pension.

Although the worker, who asked not to be identified, said he is eligible for retirement benefits, his pension will total about $1,000 monthly, plus a $400 monthly "kicker," which is reduced by a percentage of the amount of money earned at another job.

"If you earn $8,000 (a year), that completely wipe, the kicker out," he said. "I'm in my 50s so I need to get another job. If you're pension age, that's another story."

Plus, he contends workers are concerned because the United Steelworkers union contract with the company doesn't contain severance benefits. He contends the majority of the union plants where Ryerson will be sending the work currently done at 111th Street have severance in their contracts.

"The union negotiated a new contract for us a year and a half ago and forgot to put in severance," he said. "How was that overlooked? Or, wasn't the union wasn't able to get severance in a shutdown situation."

Joe Fabbre, staff representative for USW Subdistrict 1, District 7, said he isn't sure if that's the case, but the lack of severance benefits in a contract doesn't mean the workers won't get them.

"Whenever there is a shutdown you do 'effects' bargaining and that's when you sit down and negotiate shutdown benefits even though they aren't spelled out in the contract," he said. "Sometimes companies won't put them in a contract. They still have to sit down and negotiate with us. Some companies take a different approach but nine times out of 10, we're able to do it."

During contract negotiations, the union is more concerned with ongoing operations rather than with severance, which Fabbre called "taking a negative approach."

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