Investor Relations



Tentative Contract Agreement Details At Weirton Steel Released

For Immediate Release
February 13, 2003

WEIRTON, W.VA. – Specifics of the tentative contract agreement at Weirton Steel Corp. – designed as a major cost-cutting measure – today were released by the company, the Independent Steelworkers Union (ISU) and the Independent Guard Union (IGU).

The parties provided general details last Friday when they announced their tentative accord. The unions currently are conducting a ratification vote and the results will be known on Feb. 19.

The proposed contract, which affects 3,200 unionized employees, calls for:

• a 5 percent pay decrease;
• a pension plan freeze;
• cancellation of a planned dollar an hour wage increase set for April 1;
• 50 percent of vacation pay would be paid on Feb. 20 with the remaining 50 percent to be paid on July 17 instead of 100 percent being paid on Feb. 20. This would result in an immediate savings in liquidity of more than $6 million;
• discussions in the near future on possible health care coverage changes that could result in additional cost savings.

If the unionized work force ratifies the agreement, 530 management personnel will incur like reductions. In total, the company stands to reduce its annual operating costs by $38 million.

"We’re responding to the new low-cost operating methods used to reopen closed mills and to bring others out of bankruptcy. These methods have increased the competitive pressure on our company. We believe it is prudent to make immediate and effective changes to the way we conduct business in order to be a long-term survivor," said John Walker, company president and chief executive officer.

While the current contracts do not expire until March 2004, the company reopened negotiations in December for it and the unions to develop their own methods for competing in the domestic steel industry’s new business environment.

"Our union members are well aware of some of the major changes now taking place for unionized workers in other domestic steel companies. Our union leadership saw the need to enter into contract negotiations to save our jobs, our pensions and affordable, quality health care for active and retired employees," Mark Glyptis, ISU president, concluded.

In addition to competing with the emerging low-cost mills, the tentative agreement also helps Weirton Steel, the ISU and the IGU address other cost issues including consolidation within the steel industry, a slow economy, continued high steel import levels and a sharp rise in health care costs.

"The IGU also is committed to a long-term future for Weirton Steel and we’re prepared to work with the ISU and Weirton Steel to keep our company viable for the future," said Joe Balzano, IGU president.

Weirton Steel is the seventh largest U.S. integrated steel company.

Weirton Steel Corp. Media Contact:
Gregg Warren, Director-Corporate Communications  (304) 797-2828







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