USA: Pittsburgh Brewing Co. seeks labor concessions to keep the brewery afloat
Pittsburgh Brewing Co. has asked a bankruptcy judge to reject its labor agreement, saying concessions are necessary to keep the brewery afloat, Associated Press released August 05.
The brewery, which makes Iron City Beer, said in court documents August 04 that it cannot arrive at a feasible plan to emerge from Chapter 11 bankruptcy protection as long as its five-year labor contract remains intact.
Pittsburgh Brewing, which filed for Chapter 11 bankruptcy protection late last year, warned that without a new deal, it probably will close and its brands will be made by an out-of-state brewer.
The company said that despite "exhaustive negotiations," it has been unable to reach a deal with the International Union of Electronic Workers locals 144B and 22B.
"They wanted concessions across every department," said George Sharkey, the unions' business agent. "The concessions are hard to take."
According to court documents, the brewery wants its employees to take a 10 percent wage cut that would remain in place for two years after the company emerges from bankruptcy.
The current contract pays bottlers and brewers salaries ranging from $17.44 to $19.05 per hour and includes annual raises of 30 cents an hour.
Pittsburgh Brewing also asked workers to begin paying 12.5 percent of health care premiums. Workers currently do not pay for health care, Sharkey said.
The brewery also wants to cap vacation time at four weeks starting in January, according to court documents. Sharkey said some senior workers would lose one or two weeks of vacation under that plan.
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