USA: Pittsburgh Brewing Co. workers rejected concessions sought by bankrupt brewery administration

In a vote reflecting their defiance and disgust, unionized brewers and bottlers of Pittsburgh Brewing Co. unanimously rejected concessions sought by the bankrupt brewery, Pittsburgh Post-Gazette posted October 02. The vote on Sunday, October 01, was 93-0.

"This place is not going to survive with Mr. [Joseph] Piccirilli at the helm," said William Zaborwski of Economy, Beaver County, a bottler at Pittsburgh Brewery since 1994.

He said the company is demanding concessions from the unions but not looking at reducing the size of its top-heavy management team.

"No one is going to help the present owners," said another long-time employee, who refused to give his name.

Brewers and bottlers, all members of IUE/Communications Workers of America, voted behind closed doors at Moose Lodge 581 in Lawrenceville on concessions demanded by the financially distressed company, which must file a reorganization plan in U.S. Bankruptcy Court by Oct. 15.

Contacted on October 01, company attorney Robert O. Lampl said the union's vote means that the company will have to proceed under the bankruptcy code, much like the airlines did, to ask U.S. Bankruptcy Judge M. Bruce McCullough to reject the current collective bargaining agreement. The company first made that request on Aug. 4 but temporarily withdrew it so that more union negotiations could be held.

Mr. Lampl, who expects to make that request quickly, said he was not shocked by the union vote. He has seen similar actions in other bankruptcies.

"The union is showing some solidarity, and I respect that," he said.

Mr. Piccirilli led an investment group that acquired Pittsburgh Brewing in 1995 at a bankruptcy auction. The company filed for Chapter 11 protection in bankruptcy court in December after the Pittsburgh Water and Sewer Authority threatened to terminate service over unpaid bills.

The workers are in the second year of a five-year contract.

George Sharkey, IUE/CWA business agent, said union members are disgusted with the company's attempts to seek concessions for "things we just negotiated in the past year."

The company is asking employees to pay a higher percentage of their medical premiums unless they opt to participate in a health plan with higher deductibles.

It also is asking for a 5 percent wage reduction, no annual raises during the life of the contract and other changes to the wage structure.

The current average wage is $17.40 an hour, Mr. Sharkey said.

The company also is seeking other concessions on vacations, holidays and early retirement provisions.

"It is a sad situation, but I think we are doing the right thing," Mr. Zaborwski said.

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