AmeriServ Financial Announces A New Labor Contract

Rhea-AI Summary

AmeriServ Financial Bank and United Steelworkers Local 2635-06 have ratified a new four-year contract, effective until October 15, 2025. Key terms include 2% annual wage increases, unchanged healthcare coverage, and signing bonuses of $300 for full-time and $150 for part-time employees. A new retail sales and service associate position aims to enhance customer service and compensation opportunities. At September 30, 2021, AmeriServ reported total assets of $1.34 billion and a book value of $6.66 per share, reinforcing the bank's commitment to growth and community service.

Positive

• New four-year contract ensures labor stability until October 15, 2025.
• Annual wage increases of 2% enhance employee compensation.
• Retention of existing health care benefits for union employees.
• Signing bonuses of $300 and $150 for full-time and part-time employees, respectively, incentivize contract ratification.
• Creation of retail sales and service associate position boosts career opportunities and customer service.

Negative

• None.

JOHNSTOWN, Pa., Oct. 25, 2021 /PRNewswire/ -- AmeriServ Financial Bank, the banking subsidiary of AmeriServ Financial Inc. (NASDAQ: ASRV) and United Steelworkers (USW) Local 2635-06 have agreed to a new four-year contract. Unionized employees voted to accept the contract at a meeting held on Sunday, October 24, 2021 in Johnstown. The new contract covers the workforce through October 15, 2025.

The ratified contract is positive news for AmeriServ and the community, according to AmeriServ President & CEO Jeffrey Stopko. "This new agreement allows us to continue focusing on our banking for life strategy. As an organization, we are committed to providing outstanding service to our customers and communities. Together, our union and non-union employees are working to provide our shareholders, customers as well as the communities we serve with a positive banking for life experience today, tomorrow and into the future."

USW Local 2635-06 Unit President Bob Gilles agrees on the importance of the new contract to AmeriServ. "The approved agreement indicates to me that our membership believes in AmeriServ's continued commitment to being a leading community bank in our region while providing employees with good career opportunities."

Key financial terms of the new contract include annual wage increases of 2% with key provisions of existing health care coverage remaining unchanged for union employees.  Additionally, a signing bonus of $300 for full time union employees and $150 for part-time union employees will be paid as a result of the timely ratification of the contract. Finally, a new retail sales and service associate job position was added which will give union members greater compensation opportunities while providing enhanced financial consultative services to our customers.

AmeriServ Financial, Inc. is the parent of AmeriServ Financial Bank and AmeriServ Trust and Financial Services Company in Johnstown.  The Company's subsidiaries provide full-service banking and wealth management services through seventeen community offices in southwestern Pennsylvania and Hagerstown, Maryland.  The Company also operates loan production offices in Altoona and Monroeville, Pennsylvania.  At September 30, 2021, AmeriServ had total assets of $1.34 billion and a book value of $6.66 per common share.

Forward-Looking Statements 

This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding AmeriServ's dividend program and future payment obligations. These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The statements in this press release are made as of the date of this press release, even if subsequently made available by AmeriServ on its website or otherwise. AmeriServ undertakes no responsibility to publicly update or revise any forward-looking statement.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ameriserv-financial-announces-a-new-labor-contract-301407850.html

SOURCE AmeriServ Financial, Inc.

FAQ

What is the duration of the new labor contract for AmeriServ Financial?

The new labor contract for AmeriServ Financial is effective for four years, until October 15, 2025.

What are the key financial terms of the new contract for AmeriServ Financial employees?

The contract includes 2% annual wage increases, unchanged healthcare coverage, and signing bonuses of $300 for full-time and $150 for part-time employees.

When was the new labor contract for AmeriServ Financial ratified?

The new labor contract was ratified on October 24, 2021.

What impact does the new contract have on AmeriServ Financial's employees?

The contract provides wage increases, bonuses, and a new job position, improving employee satisfaction and opportunities.

What are the total assets of AmeriServ Financial as of September 30, 2021?

As of September 30, 2021, AmeriServ Financial reported total assets of $1.34 billion.