USA: Pittsburgh Brewing hopes to cut concessions
Bankrupt Pittsburgh Brewing is seeking major concessions from its unionized work force, one year after workers ratified a five-year agreement that provided wage and benefit increases, Pittsburgh Post-Gazette posted on May 12.
While two union officials said they had not received a formal proposal from the Lawrenceville brewer, sources who asked not to be identified said the brewery was seeking a 15 percent pay cut among other concessions.
The contract covers about 150 workers represented by the IUE-CWA, the industrial division of the Communications Workers of America.
IUE-CWA staff representative Ken Ream and Michael Healey, an attorney for the union, declined to disclose what the company was requesting.
"The union is not happy with what was proposed," Mr. Healey said.
Pittsburgh Brewing spokesman Jeff Vavro declined comment on whether the company had asked the union to reopen the contract ratified in June. Union workers received a pay increase May 1 under the terms of that agreement.
However, Mr. Vavro said it was not unusual for bankrupt companies to want to renegotiate labor agreements.
The steel and airline industries have won concessions from unions after filing for bankruptcy, which allows companies to seek court approval to revise contracts as part of their reorganization.
Pittsburgh Brewing filed for Chapter 11 bankruptcy protection Dec. 7.
The company has won court permission to terminate a pension plan that has an $11.8 million deficit. That request still must be cleared by the Pension Benefit Guaranty Corp., a federal agency that steps in when companies can't keep the promises they made to workers.
Retirees and workers who qualify for pension benefits under that plan will be paid by the PBGC.
In addition to the pay cut, the brewery also reportedly is seeking increased worker contributions to health care coverage and changes in vacation benefits. Companies - as well as unions - typically demand more early in negotiations than they end up getting when a final agreement is reached.
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