USW and Armstrong in Talks on Extension

Pittsburgh, PA, October 3, 2005--The United Steelworkers (USW) announced a recess today in negotiations with Armstrong World Industries (AWI) with a day-to-day extension on a midnight expiration of the current contract covering 1,400 production workers at five plant locations in Pennsylvania, Georgia, Alabama and Mississippi. USW negotiators say the biggest unresolved issue is healthcare costs being shifted to both active and retired workers, despite recent improved profits at Armstrong. Both AWI and the union are reviewing proposals that are expected to address the issue. Tom Jones, the USW's chief negotiator, said all of the union's plant negotiating committees have been meeting with management at a hotel location north of Pittsburgh. He said, "We rejected the company's proposal for deep cuts in the health care benefits for our working families and retirees, especially after the company's recent petition to a bankruptcy judge to give management employees nearly $30 million in bonuses." AWI filed bankruptcy five years ago to protest ongoing asbestos litigation. According to Jones, the company's ceiling and tile division is getting a hefty return on capital investment. In 2005, the ceiling division is getting a return of 23 percent on capital investments of $408 million. The flooring division is seeing a return of 4.7 percent on $897 million. The USW's current contract with Armstrong expired Sept. 30 at plants in Lancaster and Beaver Falls, Pennsylvania, and at Macon, Georgia. A contract extension past the September 1 expiration is in effect for two other Armstrong plants at Mobile, Alabama and Jackson, Mississippi. "We just want a fair contract for the Armstrong workers, and we are willing to continue negotiations," Jones emphasized. The USW is based in Pittsburgh and represents 850,000 workers employed in metals, rubber, chemicals, mining, paper and general manufacturing industries throughout North America. The company is a manufacturer of premier floor and ceiling tile products.