Update Regarding Labor Situation At Our Alliance, Ohio Plant

October 6, 2017

To Our Valued Customers:

We wanted to provide you with an update regarding the labor situation at our Alliance, Ohio plant. We negotiated with the union from mid-July until the members elected to go on strike on August 18, 2017.

After the strike began we initially operated the Alliance plant with salaried employees and a few temporary workers. As soon as it became clear that negotiations could take some time, we quickly brought in a significant number of temporary replacement workers. Over the last few weeks we have been successful at increasing our output of quality DOM and ERW tubing. In addition, with the support of many customers, we have moved a large number of orders to our other plants that have been operating without issue.

We have been in communication with the union regularly and in fact met with them again this week. Unfortunately, the talks have not changed the union’s position on returning to work. As a result, today we advised the union that next week we will begin the process of hiring employees to permanently replace the striking workers. This will enable us to increase our capacity until we reach our normal operating levels so that we can support your needs.

In the meantime, our other plants are unaffected by the strike and in fact we have been increasing their capacity in order to meet your requirements. This includes ERW and smaller diameter DOM from the Fairbury, IL plant; chrome bar and tube from the Hannibal, MO plant; cold drawn seamless from the Beaver Falls, PA plant; and DOM under 4.5″ OD from the Chicago Heights, IL plant.

I want to express our appreciation for your continued support during this period. Although labor law makes it challenging to share specific information regarding negotiations with you, we will keep you informed as we move forward. In the meantime, if you have any questions regarding the foregoing, please feel free to contact our sales team or myself directly.

 

Sincerely,

 

Cary Hart

President and CEO