New contract ends strike at Glenshaw Glass plant

Striking employees of Glenshaw Glass in Shaler returned to work yesterday with a new contract that temporarily reduces wages and provides for a needed modernization project.

About 300 members of the Glass, Molders, Pottery, Plastics & Allied Workers Union struck the company on April 15 after rejecting a concessionary contract that owner John Ghaznavi said was needed to make the plant competitive.The three-year agreement reached Thursday evening contains a 5 percent wage reduction for the remainder of this contract year, said Lou Brudnock, president of GMP Local 134.But he noted the wage reduction will be returned to employees in the contract's second year, and that the third year will contain a guaranteed raise based on industry averages.

Ghaznavi in return has pledged $2 million to upgrade a glass-making tank that is in need of repair, Brudnock said. The brick-lined interior of a glass furnace degrades with use and must be periodically replaced.

If Ghaznavi fails to begin rebuilding the tank by the end of the year, Brudnock said, the employees will recoup the concessions.

The company entered negotiations seeking wage reductions of 8 percent, although that was lowered as talks progressed. The end result was less onerous to employees than one rejected by a 146-to-110 vote before the strike began.

"In a strike, nobody wins. Both sides get hurt,'' Brudnock said. "But I think people feel they gained some respect. They will stand up to him (Ghaznavi)."

In addition to the financial settlement, Brudnock said, all the strikers will return to their jobs and a small group of replacement workers hired after the strike began have left the plant. The deal also reimburses employees for any health-care costs they may have incurred during the strike since the previous contract had expired.

Ghaznavi said he was pleased that the strike was settled. "I'm glad this is passed,'' he said. "We look forward to making a profitable plant out of it."

Ghaznavi first bought the plant in 1988. He then bought controlling interest in several other glass companies, but the empire collapsed when Consumers Packaging Inc. of Toronto filed for protection from creditors under Canada's bankruptcy laws in 2001.

Consumers, one of Ghaznavi's investments, had purchased Glenshaw in 1997 as part of its purchase of Tampa, Fla.-based Anchor Glass Container Corp. Ghaznavi, who bought Glenshaw back last year, is no longer affiliated with Anchor.

There was resentment among employees going into the strike because they felt Ghaznavi had abandoned the plant during his period of acquisitions and now wanted them to foot the bill for the refurbishment.

"Hopefully, this guy will reconnect with the people,'' Brudnock said.

600450 New contract ends strike at Glenshaw Glass plant

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.

Add new comment