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Health Care Problems At Lackawanna’s Republic Steel: USW-Represented Workers Complain Of Management’s ‘Lack Of Concern’ In Solving Coverage Dilemma That Is Leaving Employees With Myriad Of Problems

Published Sunday, July 22, 2018
by WNYLaborToday.com Editor-Publisher Tom Campbell
Health Care Problems At Lackawanna’s Republic Steel: USW-Represented Workers Complain Of Management’s ‘Lack Of Concern’ In Solving Coverage Dilemma That Is Leaving Employees With Myriad Of Problems

(LACKAWANNA, NEW YORK) - It was bad enough Workers employed at Republic Steel in Lackawanna did not receive a pay increase in their last contract.  Now, three years later - and, adding insult to injury, those Workers have been left to deal with a myriad of problems allegedly created by management, which those United Steelworkers (USW)-represented Workers charge is not concerned with helping solve their current health care coverage dilemma that’s so horribly impacting themselves, their health and the health of their families who are also covered by it.

Late last week, WNYLaborToday.com sat down with two representatives of the USW’s Republic Steel Local – Vice President Craig Young and Mechanical Steward Dale Sikorski, as well as with USW District 4 Sub-District Director Jim Briggs, who also serves as President of the Niagara-Orleans AFL-CIO Central Labor Council, to find out what was going on

During more than an hour-long interview, Young and Sikorski detailed a number of problems the USW Members at Republic Steel are having with management’s offered health care plan, ranging from paying three times as much for deductibles to attempting to find Buffalo area physicians who are hooked into an out-of-state provider from Ohio. 

Unbeknownst to the USW, Republic had switched their Employees Health Care Coverage Plan from a local Independent Health Plan to Ohio-based Medical Mutual – which, according to the USW Officials, has no Provider Network in Western New York.

The 59-year-old Sikorski, who’s worked at the Republic plant for the past 11 years, told Your On-Line Labor Newspaper of a personal attempt to get medical help for his young autistic son, who was having a painful ear problem, as well as problems his wife encountered.

“Holding him in my lap, ‘knowing how much he was hurting and waiting to get him help - you don’t know how mad and angry I was.’  ‘I was pissed.’  ‘It took me four to five months to find a doctor who would take our new insurance’.  I finally found ‘one’ that took it, who was working in an Orchard Park Pediatric Office.’  ‘And,’ my wife has diabetes.  Under Independent Health, we were paying a ($20) co-pay.  ‘Now the bills are ($2,000 to $3,000).’  The doctors are ‘bouncing the bills back to us.’  ‘We have to pay them and then deal with getting our money back.’  ‘In fact, we found out we were covered by our dentist, but just for check-ups,’” he said.

“Our Members were ‘forced out’ of (their previous network) ‘and were forced to deal with higher’ co-pays.  Many were ‘also forced’ to go to a physician that was ‘out-of-network’ and ‘had to pay three times as much in costs.’  ‘Any (previous) savings are now eroded’ by the costs,’” Briggs told WNYLaborToday.com. 

“We ‘found out through our doctors because Independent Health wasn’t paying the bills,’” added Young, who said he has been told way too many horror stories by USW-represented Members employed in the Western New York facility, including the following who briefly texted their problems to WNYLaborToday.com:

From Mike Altman: My CPAP carrier will not take my insurance no more due to a lack of payment still.  I’m looking for (someone) that will take the insurance.  And, (his family’s) Pediatrician’s office complains and threatens to send owed bills to collections because it takes so long for them to retrieve payment from (the) insurance company.

From Wayne Matyjasik: Received medical bills for daughter’s doctor visits, called to find out why doctor was not in the network, even though they paid previous bills.  The doctor called and they were told they were dropped from the network.  The doctor’s office had no knowledge of this and neither did my family.  They should have been notified by letter, but never were.

Gary Little: I was with Lifetime Health (which) took our coverage - now they’re closed and the doctors went to Buffalo Medical Group - (where) they don’t take our (coverage).  So, if I want to stay with my doctor - it’s out of my own pocket.

Another USW Member at Republic Steel told his Union he had the hardest time to get the company to give him a day off so he could be with his wife, who was ready to give birth to their child.  “He ‘had to provide evidence’ - a doctor’s note,” the USW Officials told WNYLaborToday.com.  “He asked management: ‘How does a baby drive itself to the hospital?”

As a result, the USW has filed as many as 30 grievances against Republic concerning health care issues, Briggs told WNYLaborToday.com.

“Why ‘should I be getting a bill for bloodwork when it’s part of a physical?’  ‘I had to call the doctor, who had to change it so it was part of my yearly physical,’” Sikorski recounted.

As a result, the 250 USW-represented Republic Workers “aren’t using the coverage because they’re (the Workers) ‘afraid to use it because they can’t afford it,’” the USW Officials said.

However, there’s a chance this extremely unfortunate and embarrassing situation could be solved - by the Union, which has joined with the Niagara Falls-headquartered Health Care/Employee Benefits Consulting Firm Crown Benefits Group - which assists Labor Unions in obtaining coverage for their Members at a far less cost through the region’s only Union-Represented Health Care Concern, BlueCross BlueShield of Western New York. 

The USW plans to present an alternative to Republic Steel’s existing Health Care Plan that will not only do better by the company’s Workers, but will provide a better under with less cost, according to Briggs.  “We’re ‘trying to get at a figure the company can live with and we’re hoping the company will cooperate,’” he added.

The Union’s last effort, which was also brought about with Crown Benefits’ help, amounted to a savings of as much as $600,000 less or about 16% less - but was not accepted by management, because - according to Briggs – the head of Republic’s Human Resources Department “failed to provide ‘real’ numbers’ the USW needed to put together its alternative.

 “We had discussions with management, including the CEO - who ‘portrays himself as a friend of the Workers.’  He ‘seems sympathetic.’  (Management) said if we came up with something ‘for the same cost or close to,’ they would move (to a new plan).  The Union has made a ‘sincere’ effort to work with (Republic) ‘to get what was needed and save them money,’” Briggs said.

As many as 60 of the Union Members employed at Republic Steel are involved in its Hot Roll Production Department, where high furnace temperatures are involved.  The rest are employed as Computer Technicians, Electricians and Millwrights. 

The median age of the Workforce is about 46 – but many of the Employees have more than 15 years put into working in the Lackawanna Facility, which is located just outside Buffalo.  The median salary is about $65,000.  Hourly wages range from $19.23 to $24.72.

“Many of these people ‘are working in what many would describe as dangerous conditions.’  They ‘have to have annual health monitoring, including looking at blood disorders, since they work in that facility and the company should provide it,’” Young said.

The sting of the health care coverage at Republic Steel in Lackawanna has been made worse by the fact the Union Employees there did not realize a wage increase in their last contract.

That situation was further intensified by the fact that unlike their United Auto Workers (UAW) counterparts employed just down the road at the Ford Stamping Plant in Hamburg, they do not enjoy any profit-sharing checks – despite the fact the USW says Republic Steel is profitable.

“They (Members) ‘entrusted me to fight for them and solve their problems,’” Young told WNYLaborToday.com, adding he brought the Republic Steel Union Members up to speed on the situation during a Union Meeting held at the USW's Lackawanna Union Hall late last week (USW Photos). 

“We ‘have to keep fighting.’  ‘That’s what we are here to do, especially for those who’ve been here fifteen or twenty years.’  These guys ‘don’t call off (from work) and this is no way to treat them.’  They ‘haven’t had any raises’ in three years - 2015 ‘was their last,’” Young said.

“We’re ‘hoping by the end (of this week) we’ll be able to get something done and change the date on the plan by the first of August, but time is running out,’” Briggs added.

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