Form 8-K
Item 5. Other Events.
USBANCORP, Inc. (the "Registrant") announced on October 17, 1995, that its
wholly owned subsidiary, U.S. Bank in Johnstown, has reached a new four year
collective bargaining agreement with the United Steelworkers of America, AFL-
CIO-CLC, Local Union 8204. For a more detailed description of the collective
bargaining agreement see the USBANCORP, Inc. Press Release attached as Exhibit
#99.1.
Exhibits
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Exhibit 99.1 USBANCORP, Inc. Press Release dated October 17,
1995, announcing that its wholly owned subsidiary,
U.S. Bank in Johnstown has reached a new four year
collective bargaining agreement with the United
Steelworkers of America, AFL-CIO-CLC, Local Union
8204.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
USBANCORP, Inc.
By:/s/Orlando B. Hanselman
Orlando B. Hanselman
Executive Vice President
& Chief Financial Officer
Date: October 26, 1995
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Exhibit 99.1
Orlando B. Hanselman OCTOBER 17, 1995
USBANCORP Exec. Vice President
& C.F.O. IMMEDIATELY
U.S. BANK President & C.E.O.
814-533-5319
PITTSBURGH, PA -- USBANCORP, Inc. (Nasdaq: UBAN) announced today that its
wholly-owned subsidiary, U.S. Bank in Johnstown (the "Bank"), has reached a new
four year collective bargaining agreement with the United Steelworkers of
America, AFL-CIO-CLC, Local Union 8204, which is the bargaining unit for 250
nonsupervisory employees of the Bank, or approximately 60% of the Bank's
workforce. The new agreement, approved by an overwhelming majority of
bargaining unit members, was effective on October 16, 1995. In the view of
the management of USBANCORP and the Bank, the agreement is fair and reasonable
to all parties and is consistent with the concept of shared proportionate
sacrifice designed to assist USBANCORP in achieving its announced goal of
reaching a 13% return on equity in 1996. The Bank introduced the shared
proportionate sacrifice concept in June and subsequently in September when a
"1996 salary freeze and temporary one year salary rollback" was announced for
all officers. The 1996 temporary one year rollback starts at 10% for
executive officers and reduces to 3% for first level officers.
The principal features of the collective bargaining agreement are as
follows:
The term of the agreement is four years. In the past, the
term of the agreement was three years. The addition of a
fourth year provides a more stable environment and reduces
associated contract negotiation costs.
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The agreement calls for a wage freeze for bargaining unit
employees in the first year of the contract ending October 15,
1996. Thereafter, the agreement calls for annual raises of
2%, 4%, and 5%.
The agreement does not alter the earnings-based formula for
determining profit sharing payments under the Bank's deferred
profit sharing plan, but participants in the plan (which
includes all employees of the Bank) will receive 90% of the
formula amount with respect to the calendar year ending
December 31, 1995. In the next two years, participants will
receive 25% and 75% of the formula amount, respectively.
These formula reductions give the Bank additional time to
enhance its core franchise and profitability. In the final
year of the contract, profit sharing payments will be restored
to 100% of formula.
The traditional indemnity health insurance coverage for
bargaining unit employees will be replaced by a Blue Cross
point of service managed care program.
The pay scale of hourly workers beyond the entry level will be
increased to be commensurate with the pay of full-time
salaried employees performing similar jobs in order to
encourage part-time employment and flexible scheduling.
Management/labor task forces will be established to provide
joint recommendations on certain operational issues.
USBANCORP, a community bank holding company, is the parent of U.S. Bank and
USBANCORP Trust Company in Johnstown and two Pittsburgh affiliates, Three Rivers
Bank and Community Bancorp, Inc.. The Company's subsidiaries provide full-
service banking to six Southwestern Pennsylvania counties through forty-five
community offices. The counties served include Allegheny, Cambria, Clearfield,
Somerset, Washington, and Westmoreland. At June 30, 1995, USBANCORP had total
assets of $1.8 billion and shareholders' equity of $147 million or $26.50 per
common share. U.S. Bank's total assets at June 30, 1995, were $1.1 billion.
Through June 30, 1995, USBANCORP and U.S. Bank reported a year-to-date return on
equity of 11.15% and 10.04%, respectively.
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