WHEELING-PITTSBURGH HEADLINESSteel Producers /
Wheeling-Pittsburgh
USW Moves to Oppose Wheeling-Pittsburgh Deal with CSN
Aug. 15, 2006
Aug. 15, 2006 — The United Steelworkers announced they will use every means at the Union's disposal to oppose the proposed transaction between Wheeling-Pittsburgh Corp. and Companhia Siderurgica Nacional (CSN).
In a letter delivered to the company, USW District 1 Director David McCall informed Wheeling-Pittsburgh’s Chairman, President and CEO James Bradley, that "the Steelworkers Union is filing a grievance in order to rectify the company's egregious violations of the Right to Bid provisions of our labor agreement."
The USW's agreement with Wheeling-Pittsburgh provides the Union with the right to organize a transaction in the event the company decides or is presented with an offer to sell the company. Until the Union is given the same period of time given to other parties, the company may enter into no contracts regarding a potential sale.
Wheeling-Pittsburgh "breached our contract when it accepted CSN's offer," McCall said, adding that the company's contention that the USW must present a competing transaction by September 8, 2006, is "completely without merit."
The union letter stated, "Even the most conservative reading of the labor agreement requires that the company enter into no contract, including most certainly the definite agreement that you have announced as your next step in the CSN transaction, prior to February 5, 2007."
"Our union has a long history of successfully opposing corporate transactions that fail to consider the best interests of the men and women who work in the mills," said Leo W. Gerard, USW International President. "While we clearly recognize the importance of consolidation to the future of the steel industry," he added, "we will only support a transaction that fully protects our members' rights."
The Union has previously indicated its strong support for the transaction proposed by Esmark, Inc.
Source: United Steelworkers