USW approves Titan labor deal

QUINCY, Ill.—After a long negotiating process, five years of labor stability have been achieved by Titan International Inc. and the United Steelworkers.

The union ratified a pact covering about 750 workers at three facilities—Local 164 in Des Moines, Iowa; Local 745 in Freeport, Ill.; and Local 890 in Bryan, Ohio—that will run through Nov. 16, 2021. The two sides have been operating off the previously expired contract since Jan. 13 and initially reached a tentative agreement March 24.

The locals ratified the deal on May 17. While the union did not disclose the final tally, Local 745 President Don Hill said the agreement passed by about 100 votes.

"We went into negotiations in a down market and we didn't know what to expect," Hill said. "It ended up being a fair deal. We wanted more, but that's how negotiations go. We're happy enough with it. We're not jumping up and down, but we're happy with it."

The economy has not been kind to Titan of late. While sales improved 11.1 percent to $357.5 million in the first quarter, it still carried a $10.5 million net loss for the period, though that too was a 41-percent improvement from 2016.

In 2016, net sales dropped 9.3 percent to $1.27 billion with a net loss of $36.1 million, which improved by about 40 percent compared to 2015.

Titan and the USW also jointly petitioned the International Trade Commission on multiple cases during the last 18 months seeking relief from imports of off-the-road tires from a variety of Asia-Pacific countries with mixed results, some of which are still ongoing.

"We are thankful to the USW and our employees for their commitment to continue to work and build quality products as both parties worked through the bargaining process," Paul Reitz, Titan president and CEO, said in a May 19 statement. "With these new five-year contracts we are excited to be able to continue to work together with all of our employees as we maintain our position as a global leader in the markets we serve for many years to come."

The two biggest points for the union were insurance cost and wage increases, both of which the union made gains in. Hill said the union managed to keep the cost split of health care between company and employee to 80 percent and 20 percent, respectively, while Titan sought a 75-25 split.

He added that initial offers from Titan did not include a wage increase, but in the final contract, the union will receive 1.5 percent pay hikes during the final three years. Hill said the Titan locals had not received a significant wage increase in 10 years.

The union also only wanted to sign a three-year agreement, but Titan insisted on five.

"They wanted to show stability to their board members," Hill said. "They had some things they wanted to convey, and with the time that it takes to do a contract, if it were a three-year deal we'd be negotiating here in another year. They wanted to push that down the road."

Reitz said the contracts also include an incentive profit-sharing plan that rewards USW members based on their plant's profitability. That incentive takes effect in the second year of the contract. A separate wage scale also was introduced for union employees hired after the ratification date.

The executive added that the new agreements provide additional management rights and economic flexibility not outlined in the previous contract.