Let’s do the math

Here’s a quick math problem for you:

The employees of United Steelworkers Local 7-669, who work in the nation’s only uranium plant, have been locked out of the facility since early June. Honeywell, the defense contractor in charge of the uranium plant in Metropolis, IL, barred the employees from entering the facility after they objected to the company’s plan to stop offering retiree healthcare and pensions for new hires, as well as increase their healthcare contributions to $8,500 a year.

It would cost Honeywell $20 million over three years to keep the workers’ health and retiree benefits at their current levels, a price they deemed to be too high. But USW officials estimate that the corporation has already spent or lost at least $48.8 million to keep the workers out of the plant.

If Honeywell is so bent on trying to cut costs and save money, why is it spending millions without cause?

The $48 million figure includes the costs of contracting temporary labor (estimated to be $20 million), an estimated $5 million to house, feed, transport, and provide additional security for the 300 temporary employees working inside the plant, and $2.5 million for overtime pay for management working extra hours. This figure does not include legal costs for Honeywell, which has also sued the union for their picketing activities.

And that’s not all. Honeywell claims they can’t afford to take care of their employees, who work with some of the most hazardous materials known to man. Yet since 2008, the company has increased its political spending by 400 percent. Go figure.

Check out Mike Elk’s article over at In These Times to learn more.

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This entry was posted on Friday, October 22nd, 2010 at 4:07 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Let’s do the math”

  1. [...] This post was mentioned on Twitter by AmericanRightsAtWork, gidgetgurl. gidgetgurl said: RT @araw: New blog post! An afternoon math problem for you http://bit.ly/9Wk7wq [...]

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