Armstrong Signs New Labor Contract

Lancaster, PA, December 19, 2005--Some 1,400 unionized workers at five Armstrong World Industries plants ratified a new contract that provides 3 percent yearly pay increases and includes a 3 percent overall drop in the amount workers pay for health care, according to the Lancaster New Era,. The new three-year agreement covers 376 workers represented by the Local 285 of the United States Steelworkers at the Lancaster floor plant, and 420 members of the Local 441 at Armstrong’s Marietta ceiling plant. The Steelworkers’ chief negotiator, Tom Jones, described the negotiations, which began in August, as “very, very difficult.” “They fought us tooth-and-nail all the way up to the end,” Jones said. The union’s previous contract expired Oct. 14, but union workers stayed on under the old pact while contract talks continued. Jones, an international staff representative, said health care was a major sticking point in the negotiations. He said other unions within Armstrong have recently been forced to shoulder more costs for health insurance. “Armstrong evidently wanted to shove that down our throat,” Jones said. While health care deductibles will increase in the new agreement, the overall percentage of health care premiums paid by employees will drop from 17 to 14 percent. Deductibles for individuals in the plan will jump from $200 to $300 and the family deductible goes from $400 to $600. Jones said the health care aspects of the agreement were a victory for the union. “As it turned out we were able to hold our own and come way out ahead compared to what the other groups at Armstrong were able to get,” Jones said. Covered employees will also see a 3 percent yearly wage increase. The average wage at the Lancaster plant is $18.99, which would rise to $20.75 by the contract’s end. Employees will also be paid a one-time bonus of $750 for ratifying the contract. In addition, for the first time, union employees will be given the option of contributing to the steelworkers political action committee (PAC) through a voluntary check-off. Jones said he was pleased with the new pact. “This is the first time that I’ve ever been in a contract negotiation with Armstrong where there were really true negotiations,” he said. “Prior to this, Armstrong determined what they would get and that’s what the employees actually accepted.” Jones said Armstrong recognized the “sheer economics” of the steelworkers, saying the combined efforts of workers at five plants gave the union clout. “The only thing that I’m proud of is that all these different locations stuck together and realized the importance of solidarity,” Jones said. An Armstrong spokeswoman did not return messages left for comment on the agreement. The company has been in bankruptcy since 2000 to resolve nearly 200,000 asbestos injury lawsuits. In addition to the Lancaster and Marietta plants, the agreement covers workers at the Jackson, Miss., floor plant, and workers at ceiling plants in Macon, Ga., Mobile, Ala., and Beaver Falls.