Strike Ends at RBC Nice Ball Bearings

Workers at NICE Ball Bearings Inc. (USA, a division of Roller Bearing Company of America Inc.) are back at work after ratifying a new contract, ending the strike which had idled NICE since November. Located in the Philadelphia, PA, suburb of Kulpsville, Nice primarily manufactures inch-dimension ball bearings and components. The company's approximately 55 production workers, represented by the United Steelworkers, walked out when their contract expired with union and RBC negotiators far from any prospect for agreement. Although other terms were worked out, the two sides parted ways over RBC's proposed hike in employee contribution to the health care package. While the latest contract round began in late 2003, it actually is a continuation of contentious negotiations and the original contract which expired in 2002. But negotiations came to an abrupt halt in 2002 when the union missed a key filing deadline; RBC exercised its right to lock in the existing contract for another year. When it came up again in 2003, the union and RBC were again able to reach agreement on everything except the health care contribution portion of the package, a union representative told eBearing. eBearing interviewed United Steelworkers of America spokesman Gerald Dickey, who indicated the workers had negotiated to accept a small wage increase, new work rules to make the shop more efficient and to restructure the shop floor. By November 2003, he said, RBC and the union had agreed to a two-tier pay scale, permanently paying new hires $3 per hour less than current workers who average $15 to $16 per hour. The two sides also worked out a 1.5% per year wage increase package, work rule changes, and shop floor restructuring. But, said Mr. Dickey, the union found RBC's insistence on a medical copay hike, "simply unacceptable." Hourly employees had been paying $40 per month for their health insurance, but under the new plan RBC proposed, the union said its calculations showed employee contributions could balloon as high as $300 per month. "That," said Mr. Dickey, "is over the head of a guy making $16 an hour." Health insurance benefits had been a problem on the agenda since the 2002 negotiations, when the union said, "We have seen a steady erosion of these benefits over the past several contracts," then indicating how benefits had been squeezed since 1992. When RBC completed its acquisition of Timken's Torrington Standard Plant operations, many RBC and Nice employees, customers and vendors said the strike would be settled soon, since RBC needs rings from Nice to supply the Standard Plant. The USWA could not immediately be reached for comment about the contract settlement. RBC declined comment on the strike or contract issues, but RBC VP and General Manager, Rick Edwards, told eBearing, "The strike at Nice has ended, and we're in the process of returning to normal operations." Founded by William Nice in 1902 as The Pressed Steel Manufacturing Company, his unground bearing business was renamed The Nice Ball Bearing Company in 1914. Nice was later acquired by SKF, and RBC acquired the Nice Ball Bearing Division of SKF in 1997. Today, Nice produces a full line of precision ground, semi-ground and unground bearings and bearing assemblies. The company focuses on special and standard inch dimension ball bearings for automotive, industrial, lawn equipment, conveyor, material handling, medical and semiconductor equipment, bicycles, automotive strut and steering column applications. Nice bearings have been sold exclusively by SKF/MRC. In 1941, Nice workers founded the bearing industry's first dedicated union by formally organizing the Anti-Friction Bearing Workers Union. In 1962, the AFBWU merged with the United Steelworkers of America to become USWA Local 6326. In 1999, it and several small locals were merged to become USWA Amalgamated Local 6816, Unit 12.