John Cirri, the powerful president of Local 9477 of the United Steelworkers (USW), is telling members that he plans to resign and take an appointed union position after the labor contract with Sparrows Point’s new owner, RG Steel, is voted on next month.

The Brew has learned that the International USW has arranged for Cirri to take a new position – contract coordinator for safety – at the Sparrows Point, Warren and Wheeling mills. RG Steel purchased the three mills from Severstal last month with the blessing of the USW.

Asked for comment last night, Cirri said via e-mail, “Any rumors that I have been offered any new job by the USW or RG Steel is simply not true, and my decision of resigning will be made known first to membership of the local.”

Cirri, whose term as president ends next April, has been under fire for his role in negotiating the new contract with RG Steel.

Billed by USW officials as a “pattern” contract, the RG agreement keeps base wages $1.80 an hour below the wages at ArcelorMittal, US Steel and other union mills, and eliminates incentive pay for six months.

The contract’s terms – disclosed by The Brew (here and here) – has sparked outrage by some steelworkers. There is now a grassroots campaign to “vote no” when the contract comes up for membership approval. Union employees are currently under an expired 2003 contract.

David McCall, chief USW negotiator, is scheduled to hold meetings on April 21 at the Local 9477 hall to discuss the new contract, which has not yet been fully disclosed to steelworkers.

So far, a summary of the contract has been issued by Cirri and other union officials at Warren and Wheeling, together with an e-mail letter defending the settlement by McCall.

The pact will be voted on through a mail-in ballot. All ballots received by members at the International USW’s Pittsburgh headquarters will be counted on May 5. Cirri said he plans to be in Pittsburgh and count the ballots from Sparrows Point.

Tumultuous Years

Cirri has been Sparrows Point local president since 2000, a tumultuous period during which the steel mill has been sold to four different owners following the bankruptcy of Bethlehem Steel Corp.

The latest owner, RG Steel, plans to restart the mill’s “L” blast furnace and other operations that have been closed since July. About 400 laid-off steelworkers have been recalled to the mill to help restart operations.

A former crane operator, Cirri amassed political power through his caucus, the Red, White and Blue. His sway over mill affairs has been considerable, especially during the 2005-10 tenure of plant manager Thomas J. Russo.

In late 2009, the U.S. Department of Labor filed a lawsuit against Local 9477 alleging irregularities in the last union election. The lawsuit called for new elections for president, vice president, financial secretary, treasurer and other positions.

Cirri resisted the terms, saying the lawsuit was baseless and filled with phony accusations by his opponents, the United Steelworkers for Action.

The International USW challenged the DOL lawsuit, and the case is now before the U.S. District Court in Maryland.