Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, November 6, 1993 TAG: 9311080136
SECTION: CURRENT PAGE: NRV1 EDITION: NEW RIVER VALLEY
SOURCE: BRIAN KELLEY STAFF WRITER
DATELINE: LENGTH: Medium
Negotiators with Local 3-925 of the Oil, Chemical and Atomic Workers International Union ended talks with Magnox late Thursday and then voted, said Hiawatha Nicely, Magnox's executive vice president.
Union officials notified him at 11 p.m. Thursday that members had accepted the contract, Nicely said.
Contract negotiations went down to the wire primarily because union members wanted a two-year contract and the company sought a five-year agreement, said Steve Gentry, the union's international representative.
The four-year contract, which went into effect Friday, includes 3.5 percent pay increases the first two years and 3.6 percent increases in the third and fourth years, Gentry said. Though he could not provide the highest and lowest wage rates, Gentry said the average pay increase ranges from 35 to 40 cents an hour. The union represents 92 of the plant's 180 workers.
Magnox also will increase its contribution to the employees' health-care plan, which will decrease workers' deductibles by up to one-half, and cut the out-of-pocket maximum expense from $5,000 to $2,500 for families and from $2,500 to $1,000 for individuals.
The labor contract, which he termed ``good for both sides,'' also changes certain company work rules, such as one restricting when workers could take vacations, Gentry said.
Gentry declined to release a vote total, but said it was close.
``We're pleased,'' Gentry said. ``It was a difficult battle. This company has been going through some tough times. Hopefully ... things are going to improve in the future.''
Nicely declined to comment on the changes but said they reflect the state of the local and national economies and international effects. Magnox, which exports most of its products, has had a business relationship with a Japanese company for four years.
Mitsui Kinzuko contributed capital to a multimillion dollar expansion of the Magnox plant off Commerce Street in Pulaski. At a July 1992 groundbreaking for the expansion, a Magnox official said the firm had become the No. 1 manufacturer of magnetic particles outside Japan and its sales had doubled since 1987. He also said the company was reinvesting its profits in the expansion.
The company is privately held. It was spun off from Hercules Inc., which operates the Radford Army Ammunition Plant, in 1985 with the help of loans and grants from federal, state and local governments. Magnox manufactures magnetic iron oxides used in videotapes and other audio, computer and copier technologies.
Last month, Local 3-495 Chemical Workers union members at the RAAP accepted a one-year contract that includes a 3.5 percent raise and reduced insurance rates. The Oct. 6 vote averted a walkout at the Fairlawn plant.
by CNB