There's no way union workers at Wheatland Tube Co. will grant requested labor contract concessions to a company that's turning a profit, a United Steelworkers leader said Monday.

USW Local 1660, which represents 470 production and maintenance workers at the Wheatland pipe and tube maker, struck the company Monday morning after their previous contract expired. Bargaining over a new contract hit a roadblock when the company refused to budge on seeking concessions, said Dominic Vadala, Local 1660's president.

By far, the biggest issue was paying part of health insurance premiums.

"We're pretty damn mad I can tell you that,'' Vadala said. "We've been slapped in the face. These employees don't deserve what the company's doing to us right now.''

In the past, workers have shown they're willing to give concessions if a need is shown, he said. During a steep downturn in the 1980s, workers went without raises for 10 years. But, he said, the current situation is different because Wheatland Tube said it's generating a profit.

"Give us a reason why you need concessions,'' Vadala said.

Other workers on the picket line next to the plant Monday morning backed Vadala's sentiments.

"If they opened up the books and showed us they lost $10 million -- yeah,'' said Luke Yarian, a second-generation Wheatland Tube worker.

While the company is offering wage increases of 25 cents an hour the first year, 35 cents the second and 40 cents the third, workers would still lose money because the raises and more would be gobbled up with co-payments for health care insurance, Vadala said. Co-payments proposed by the company would be phased in over three years, 10 percent the first year, 15 percent in the second and 20 percent in the contract's third year.

"Even if health care costs stayed the same over the next three years -- and that's never going to happen -- we'd be making 12 cents an hour less than we make now, and that's not counting the other cuts they want,'' Vadala said.

The company said health insurance premiums have soared more than 62 percent over four years. Also, it has been paying the full $850 monthly premium for family coverage for health, dental and vision benefits for hourly workers, while salaried employees began sharing premiums in 1992 and pay 20 percent of the monthly premiums.

Vadala acknowledged it's become common for businesses to ask employees to pay a portion of their health insurance.

"I don't care what everyone else is doing,'' he said. "If it wasn't for this (Wheatland) plant, the company wouldn't have the other plants they have now.''

Last year Wheatland Tube bought AK Steel Sawhill Tubular Division. Since then it has announced the closing of the former Sawhill plant in Wheatland and is selling equipment in part of the former Sawhill plant in Warren, Ohio.

"They're not paying for Sawhill off of us,'' Vadala said.

Other concessions the company is seeking are caps on incentive pay, changes in how certain holidays are counted toward the work week, and changes in the retirement plan, Vadala said.

Added up, the concessions total at least 50 cents to 75 cents an hour for workers, Vadala said. He laid all the blame for the strike on Bill Kerins, vice president of Wheatland Tube.

"He thinks we're going to cave -- we're not,'' Vadala said.

Kerins pointed the finger at the union.

"The strike's about the union not wanting to bend and not having any sense of reality,'' Kerins said. "Not wanting to give $1 a month towards health insurance signifies they have an issue they need to deal with.''

He disagreed with Vadala's figures that the proposed contract would cost workers up to 75 cents an hour.

While Kerins acknowledged the company is in the black, he noted the industry is mired in its worst market in more than 20 years. Sales have plummeted to the point where the company's other plants can more than make up production needs, he said.

Regardless, the company has to get a handle on spiraling health costs. Workers, he said, must share in some of those costs.

"We want to do things in a prudent manner so that current retirees and active employees have the benefits at the levels we've committed to,'' he said. "The Steelworkers' position has been: We'll talk to you when you're in bankruptcy. That's usually too late.''

Citing U.S. Department of Labor figures, Kerins said only 52 percent of private sector workers have company-provided insurance and of that group, only 32 percent of the businesses provide fully paid insurance for employees with single coverage and only 19 percent pay the full premium for family coverage.

Also, he said, in 2002 hourly employees earned about $46,200 by working an average of 43 hours a week for 48.3 weeks and took an average of 3.7 weeks of paid vacation plus 11 paid holidays. Total employee costs are more than $32 an hour, he said.

No new bargaining sessions are planned.

Vadala said while he's ready to negotiate at any time, unless the company changes its view, this has the makings of a long strike.

"I told my guys to start looking for other work,'' Vadala said. "We could be out here for four or five months.''

It's up to the union to decide when bargaining will resume, Kerins said. He added, there are no winners in a strike.

"Strikes impact companies; they also impact families,'' Kerins said. "A lot of those people will have a hard time with their families -- that's the unfortunate thing with strikes.''

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