'Bittersweet' vote clears way for new owner for Iron City maker, saves
jobs
Monday, January 22, 2007

By David Templeton, Pittsburgh Post-Gazette


For two hours, by all accounts, arguments raged and passions erupted
with choice words, name-calling and finger-pointing.

But during a noontime vote yesterday, members of IUE/Communications
Workers of America at Pittsburgh Brewing Co. voted 66-52 to approve a
concessionary contract that will reduce wages by 15 percent, to a
range of $14.83 to $16.20 per hour, among other givebacks.

Pittsburgh Brewing Acquisition had demanded that workers accept
concessions before it would purchase the bankrupt brewery and invest
money to make it profitable.

Among other provisions, the contract will require employees to pay
deductibles in their health plan and replace the current pension plan
with a matching 401(k) program.

In addition, the concessionary package will require all union workers
to interview for their jobs. But union representatives described it as
formality, with workers to be recalled based on seniority.

"This is a major concessionary contract and of course many are upset,
but this was an opportunity to save jobs that would be lost," said
George Sharkey, business manager of IUE/CWA Local 144B, which
represents as many as 140 brewery workers. "This is a very bittersweet
moment."

Mr. Sharkey said the vote will keep the brewery operating with hope
that the new owners will improve marketing and sales, leading to new
jobs and higher future contracts.

"We're counting on the people of Pittsburgh to drink the products of a
brewery that's been in operation 145 years," Mr. Sharkey said. "It's a
Pittsburgh icon."


Tim Hickman, a Pittsburgh Brewing Acquisition investor who will serve
as brewery president once the sale is approved, said of the contract
that he was "pleased it was ratified" with hopes of "getting the plant
back on its feet."

The East Liverpool, Ohio, investor told workers before the vote the
new company would improve marketing, invest money to upgrade the plant
and work to boost sales.

"This brewery has history, traditions and a lot of values that we'd
like to be associated with," he said of his investment group. "We want
to expand production, and our ultimate goal is to create jobs."

But after the vote, the mood was grim.

Many employees leaving the meeting refused to comment. Several who did
comment refused to identify themselves. No one seemed happy, but
several were incensed by the givebacks, with fears their jobs were
gone forever.

"I voted against it," said Terry Springborn, 55, of Carnegie, who has
worked 37 years for the company. He said he's sure to lose his job
because he must undergo surgery for injuries he received when a
conveyor fell on him. The surgery will keep him off the job for more
than 18 months.

"It says in the agreement if you're off for 18 months, you're done,"
he said. "So if they are going to cut my throat, I'm not going to help
them cut my throat. Why should I do it for them?"

Lawrenceville-based Pittsburgh Brewing sought bankruptcy protection in
December 2005 after the Pittsburgh Water and Sewer Authority
threatened to terminate service because of more than $2 million in
unpaid bills.

Although the brewery that makes Iron City and IC Light brands has been
in operation since 1861, it's been losing market share to large
national breweries for years.

After the vote, workers said it's clear the company initially will cut
the labor force, with those lacking seniority sure to lose their
jobs.

For that reason, the vote generally split between those with seniority
who felt their jobs would be secure versus those who said their jobs
would be gone with or without a concessionary contract.

"Half the people will be losing jobs," said Ken Graf, 41, of
Pittsburgh, who has worked in the brewery 19 years, which is not long
enough to salvage his job. "I voted against it."

Tom Shannon, 49, of Lawrenceville, has worked there 11 years, as an
electrician, but also stands to lose his job due to seniority. Even if
he does retain his job, he said, his salary would plummet from $35,000
to about $25,000 a year, considering concessions in wages, pension and
benefits. He also voted against the contract.

"It hurts," he said, noting he'll soon be on the unemployment line.
"Business has been spiraling downhill for six years, coming to this."

Mr. Hickman said he expects Pittsburgh Brewing Acquisition to take
ownership in April, once it completes procedures to bring the company
out of bankruptcy.

Until then, Mr. Sharkey said, workers will continue to be paid under
the current contract.

"Without this going through, we didn't see it there at all," Mr.
Sharkey said of the plant. "With a contract, we see a future."