Local Union Officials representing members at Gerdau plants from across the USA and Canada. along with the representatives from Chile and Brazil will be here in St. Paul in solidarity with you, and your local union's efforts to bargain a fair contract.

USW Members at St. Paul are urged too attend one of the three important membership meetings being held with the Unity Council on August 11th at the VFW on Concord. Your attendance is extremely important. The information we will exchange will help each of you, and the Unity Council, to clearly understand the challenge we face at other Gerdau Ameristeel locations and in St. Paul bargaining. Refreshments and food will be available at the meetings being held at 7:30 AM, 12:00 PM and 3:30 on the 11th.

Please don't miss your opportunity to have your voice heard : Your local bargaining Committtee will, at these three important meetings, be asking for strike authorization from the membership. The details and the reasons for this request will be clearly communicated and discussed thoroughly.

As we reported in the previous update, Gerdau has proposed very significant changes to your agreement that would, if implemented, have serious negative effect on your current contractual rights. As detailed at our membership meetings on July 21st at the VFW we have continued to stress that those issues left unresolved from the sale of North Star to Gerdau, ("the left over issues") must be cleared up to our satisfaction if we are to reach a fair contract.

Those issues, (that are also being fought in the grievance procedure), include The Profit Sharing, the Deferred Pension, the Supplementary Unemployment Benefit Fund, the Health Care coverage issues, Gerdau's interference with Union Bulletin Boards and Gerdau's refusal to allow you to put stickers of support for the Union and the Unity Council on your hard hats. At the meetings on the 11th, your local Union Commmittee and representatives of the USW will be able to answer your questions on these matters.

Your Bargaining Committee has met in negotiations with Gerdau on the 2nd, 3rd, and 4th of August. To date, Gerdau has resolved only the bulletin board and sticker issues. None of the "left over issues" nor any of the contractual rights issues have been settled.

Again, your attendance at the membership meetings on the 11th is important so we can discuss your Committee's concerns and more details of bargaining. The next negotiation session is August 10th. We will then be meeting Gerdau on August 23rd, 24th, 25, 30th, 31st and Sept. 1st. The lack of any progress on your important contract proposals will be an important part of these meetings.

ISSUES BY YOUR NEGOTIATING COMMITTEE OF LOCAL 7263 USW

As all of you should be aware, Gerdau Ameristeel locked out our members in Beaumont Texas over two months ago rather than bargain a fair agreement. Gerdau's motives became clear. They were attempting to force a position on our members that would seriously dimish their overall economic package and elliminate important contract rights our mebers worked hard too achieve over many years.

Unlike your negotiations in previous contract renewals, where local management usually had much of the "say" and control over getting to a settlement, Gerdau is using a very high profile law firm to conduct their contract talks. This law firm is employed by Gerdau to bargain with your Union representatives and your plant management has very little to do with what's on the table... Gerdau top management does. The Union contract you currently enjoy is under attack in St. Paul much like the Texas agreement. As you asked of us, we will highlight for you in this update, where the Company is proposing to eliminate or seriously undermine your current rights and privileges....rights and privileges that directly affect your day to day working life, and your family's well being. As we said at our membership meetings on July 20, all of you need too participate in efforts to support your union committee's efforts to protect your rights. It is in your best interest going forward!!! We expect that it will be a challenging period for all of us as we work together to bargain a fair contract with Gerdau/Ameristeel.

Your support and solidarity is critical to any successful bargaining effort and your questions and suggestions are welcomed. Your Local Union Bargaining Committee, elected by you, urges you be aware that the Company spread misinformation about negotiations in Texas and we expect that they will probably continue their efforts in St. Paul in an attempt to cause division in your ranks...solely for their own purposes. Your Union believes strongly that you deserve more respect than that, so we ask that you bring your questions to your Union officials and that, unless your Bargaining Committee verifies information about what is happening and why,...if may not be truthful. You will be regularly updated and you will be asked to join in our efforts to get you a fair agreement. Don't leave your part in this important effort to someone else. We are certain that with your support we will achieve...

Overtime at the rate of 1 1/2 times the regular rate is currently paid for :

Hours worked in excess of eight but less than twelve in a work day.

Hours worked in excess of forty hours in a work week.

Hours worked on the sixth or seventh work day in a work week during which the employee was scheduled and worked five days.

Overtime at the rate of two (2) times the regular rate of pay is currently paid for:

Hours worked in excess of twelve straight time and/or overtime hours within any twenty-four hour period.

Hours worked in excess of eight (8) on the sixth and seventh day when the employee has already worked five other days in the payroll week.

Overtime at three (3) times the regular rate of pay is currently paid for hours worked in excess of 8 on a holiday or on the sixth and seventh day

Gerdau is proposing that the current language protecting you from excessive numbers of short work weeks in any one year be removed. Then Gerdau is proposing that they will credit your vacation eligibility and your pension for only the actual number of hours you work in a short work week. Currently you get credit for the full week for vacation and pension when short weeks are implemented.

Gerdau wants to change your 5 years of seniority protection when on lay off to read a maximum of 1 (one) year. That means after one year you have no right to return and all you service is lost.

Gerdau wants to eliminate the scheduling rights (below) you have for your vacation. The excerpt below is your current contract language guaranteeing that, in accordance with the agreement's terms, you can have your time off in blocks of 1, 2, or 3 weeks in a row. Under Gerdau's proposal you would then take vacation when Geerdau says and tells you how many days you can have.

"Vacations shall be scheduled during complete calendar weeks beginning on Monday and ending on Sunday except by mutual agreement of Company and Union. A one (1) week's vacation shall consist of seven (7) consecutive days, a two (2) week's vacation of fourteen (14) consecutive days and three (3) week's vacation of twenty-one (21) consecutive days..." Section 17,4 of your current contract

They want to eliminate the very successor language that was the reason you still have your jobs and your contract after Gerdau purchased the plant, that your agreement provides and during the coming weeks we will be expanding on just what those are.