Sterling Chem, union resolve 16-week Texas lockout

04 October 2002 22:12  [Source: ICIS news]

HOUSTON (CNI)--Employees at Sterling Chemical's Texas City plant are expected to return to work 8 October following a 16-week lockout, Sterling told CNI Friday.

Mark Kahil, manager of investor relations and public affairs at Houston-based Sterling, said union members approved a 19-month contract earlier this week.

The contract provides a one time 3.5% raise for machinists and electricians while others will receive a $1200 lump sum, which Kahil said amounted to about a 2-2.5% raise.

Representatives from the International Union of Operating Engineers (IUOE) Local 347 and Texas City Metal Trades did not immediately return telephone calls seeking comment.

Sterling used contract workers to help continue operations at the plant - which produces a variety of commodity chemicals - following the rejection of a contract offer that resulted in the lockout of 215 metal workers at the site.

Sterling officials said the company is unsure how many of the 215 workers will return "because some may have gotten other jobs."

Sterling will begin an intensive return to work program Tuesday including physical exams, retraining, re-orientation and re-qualification of the hourly employees, Kahil said.

Rick Turner, manager of human resources, said the company is not equipped to handle such a large number of personnel in a short period.

He added: "Our plan is to have all the hourly employees retrained and back to work in the month of October."

Sterling is reorganising its finances under the protections of Chapter 11 of the US Bankruptcy Code.

By: Mike Sheridan
+1 713 525 2653

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