Keystone Cement union dismisses lawsuit
The union representing workers at the Keystone Cement Co. plant in Northampton County has voluntarily dismissed a lawsuit that had sought to halt the facility’s sale, saying it has reached an understanding with the buyers.
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, commonly known as the United Steelworkers, last week sued Keystone Cement in U.S. District Court in Easton on behalf of about 100 workers in Keystone’s cement and aggregate operations.
The suit claimed the buyer, Lehigh Hanson Inc., stated it would not accept or assume Keystone’s contracts with the union, and would require workers to reapply for jobs and undergo drug and alcohol testing, all of which would violate the union’s contracts.
The union had filed grievances, but any decision from arbitrators after the sale is complete would have no bearing on the new owners, the suit said.
In a two-page filing Tuesday, the union said it was voluntarily dismissing the lawsuit and had withdrawn the grievances pursuant to an understanding with Lehigh Hanson.
“The Steelworkers and Lehigh Hanson have been involved in a good-faith effort to resolve their differences, therefore rendering the lawsuit unnecessary,” the union said in a statement Wednesday.
The statement noted the Steelworkers and Lehigh Hanson have a longstanding and positive bargaining relationship and that the union believes Lehigh Hanson’s acquisition of the facility would be positive for the employees there.
A Keystone manager and Keystone’s parent company did not respond to inquiries last week.
HeidelbergCement of Germany announced last month that its North American subsidiary, Lehigh Hanson, has entered into an agreement to buy the Keystone Cement plant in East Allen Township and Bath. In the $151 million deal, Lehigh Hanson will acquire the plant from Giant Cement, the U.S. cement subsidiary of Mexico’s Elementia SAB de CV. The transaction, subject to antitrust regulatory approval, is expected to close in the coming months.
The Keystone plant, which has been operating since 1928, supplies the Pennsylvania, New Jersey and New York markets with bulk and bagged portland cement. The operation encompasses more than 800 acres, predominantly in East Allen with a small portion in Bath, according to property records.
Lehigh Hanson said the plant, which underwent a $230 million modernization about a decade ago, would strengthen the company’s presence in the region. Its holdings include the former Essroc
facility — now called Lehigh Cement Co. — in Lower Nazareth Township and Nazareth, and the Evansville cement and slag plant near Fleetwood.
Morning Call reporter Peter Hall can be reached at 610-820-6581; peter.hall@mcall.com.