They were robbed of their jobs, then their healthcare. Now a group of retired steel workers say they just want a fair shake.
When Freightcar American closed its Johnstown plant in 2008 workers were devastated.
“We’ve always heard we had the best workforce in Johnstown. We produced the best quality car”, said Jeff Baxter. “We busted our hump down there.”
In the final union contract Freightcar promised to provide a liftetime of health coverage and life insurance. In 2013, the company reopened the contract and pulled all benefits.
“They said let’s take 1,100 people, workers and spouses, and just shut them off. To me that is just unconscionable”.
Tom Brawley said the carpet was pulled out from under them and it was just another sign of disrespect.
Brawley, Baxter and many other workers had to go find their own healthcare. Some found a policy they could afford, others went without.
Since 2013, the United Steel Workers Union fought to get those benefits back. A court date was scheduled in August 2015, however, the union and executives from Freightcar America settled out of court.
Freightcar agreed to place $32 million dollars into a fund to be distributed to the former steel workers for health care.
Many of the retirees expected to receive a lump sum payment. Instead, union leaders felt it was best to put together a healthcare package that they said would benefit the majority.
“It was only 40 cents on the dollar, but we accepted because of our age, we’re dying left and right”, said Brawley,
That is where the debate now lies. The USW decided to create a fund that would be run independently of Freightcar and the union.
The fund makes benefits available for approximately 650 pre-Medicare and Medicare-eligible retirees and their dependents and is estimated to last for approximately 18 years into the future.
The union said the court addressed the request of some retirees that the fund be distributed as a tax free cash payment instead of in the form of health insurance.
However, the court found this fund would save a pre-Medicare couple approximately $750 per month and some Medicare-eligible retirees would carry a premium as low as $43 per month.
Tom Brawley and Jeff Baxter spent more than 30 years in the steel mills. It was back breaking work that has taken its toll.
“I get up in the morning and it is hard to walk”, claims Baxter.
“I got a couple of heart attacks and 10 stent in me”, said Brawley.
These two men dispute the value of health insurance package and say the majority of the workers cannot afford the coverage being offered. After being dropped by Freightcar America they were forced to look for alternatives and say they found plans they can afford. They asked the union if they could be reimbursed for a percentage of their current insurance plans. They also question whether this fund will last 18 years.
They say calls to union leaders have gone unanswered. They simply want the opportunity to sit down with the union and determine if there is a better way to distribute the money.
“I feel and the majority of guys feel that we paid into the union. Now it’s your turn to do something for us”, said Baxter.
Brawley is frustrated that the workers voices are not being heard.
“We feel as though there is a better way and we kind of earned it.”
Joe Stuligross, an attorney for the USW, said they have communicated with all retirees and held meetings in Johnstown to listen to their views and concerns. Stuligross provided this statement:
“It’s hard for the Union to understand some retirees’ objection to coordinated, professional management of a benefit by trustees whose sole legal duty is to serve retirees. We urge retirees to read the enrollment materials carefully, see how the benefits apply to them in practice, and give the VEBA Committee the opportunity to make any ongoing changes needed to ensure a valuable and affordable benefit for many years to come.”
Stuligross agrees that Freightcar treated these workers terribly for years. He said health care is not something that can be equally distributed among the retirees and that was never the nature of the bargain in reaching this settlement. Stuligross added that the union fought to extend the health coverage that Freightcar promised to these workers.
Baxter and Brawley don’t believe a majority of people will sign up and they want to know what will happen to the money in that fund if it is not used. The retirees have until February 19 to appeal the judge’s decision.
The USW told WTAJ that the money must be used for health care, but if a majority of retirees do not sign up they will have to find another way to reallocate that money. That process could take at least a year that is time many of these old steel workers do not have.
The steelworkers are trying to contact as many workers as they can to see if they want to accept this benefit plan. If a majority is truly against it, they will work to get an extension on the appeal.
If you are a former Freightcar Worker you can call Jeff Baxter at 814-322-1019. or Tom Brawley at 814-536-2894.
