Steelworkers question benefits change by TimkenSteel

April 18-- Apr. 18--CANTON The United Steelworkers International union, along with retirees from Golden Lodge Local 1123, are questioning a change TimkenSteel plans to make in health insurance benefits for retirees eligible for Medicare.

Union officials said they learned of the change in a meeting last week. Some retired Local 1123 members have received information from Aon Retiree Health Exchange inviting them to attend meetings where the adjustments will be reviewed.

The plan change will take effect on Aug. 1, according to information mailed to retirees, who are told to contact Aon about attending meetings on April 30, May 1, May 8 or May 9 to get more details.

A number of retirees, including several former Local 1123 presidents, filled Wednesday morning's regular meeting of the local in hopes of finding out more information.

Steelworkers believe the change affects contract language negotiated in 1994 that remains part of the current agreement. The company -- at that point Timken Co. -- agreed to pay $295 per month for each participant toward insurance that supplements Medicare. The plans are only available to TimkenSteel employees and their families.

Under the planned change, TimkenSteel retirees on Medicare would work with Aon to find the best plan for their needs and receive help as they transition to an individual Medicare plan, the company said in an emailed statement.

The company would end the $295-per-month payments and establish a health reimbursement account (HRA) to help pay for eligible premiums and out-of-pocket expenses. The HRA would have $1,800 annually for pre-1994 retirees, spouses and surviving spouses, and $1,200 annually for those who retired after 1994, according to the company.

According to information provided to Steelworkers, a similar approach was taken with salaried Medicare participants in 2017.

TimkenSteel said the change comes after a review of the retiree group health plan. The company said it compared its plan to health insurance options available in the individual market and found more options that would lower costs for Medicare-eligible retirees.

The company added that many of its retirees already have insurance through the individual market.

The change affects only Steelworkers designated as retirees with TimkenSteel. In 2014, when TimkenSteel was separated from Timken Co., retirees were divided between the two companies based on departments where they worked.

Late in 2018, Timken Co., which makes tapered roller bearings and power transmission equipment, instituted a new plan for its retirees who are eligible for Medicare. Bob Harper, Local 1123 president, said Timken also used Aon as a third-party provider but continued to offer plans and pay the $295 per month.

Timken retirees "still have paid insurance," Harper said.

Past Local 1123 presidents who now are retired contend TimkenSteel isn't honoring its past promises to provide retirees with health insurance benefits. They note that some retirees have relied on the benefit for more than 20 years.

"I don't believe they have the right to do this," said Joe Kostic, who led Local 1123 from 1997 until 2000.

Bill Conner, a subdistrict director with Steelworkers District 1, said the union has asked to negotiate the change and is investigating options. A meeting has been scheduled with the company, he said.

"All we're (Local 1123 members) asking for is what they were told they were going to get," Conner said.

Randy Feemster, Local 1123 president from 2006 until 2009, said members gave up pay raises in order to keep health insurance benefits. "This is what we accepted in lieu of wages."

Reach Edd at 330-580-8484 or edd.pritchard@cantonrep.com

On Twitter: @epritchardREP

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