02/19/2003
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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp.’s chief executive officer said the company has significantly improved its position to compete following today’s ratification of new labor agreements by its unions. "We took a big step forward today in boosting our competitiveness. Although it’s painful to ask for sacrifices and even more so for those affected, I thank the union members for their courage and management members for understanding that change is needed for our long-term viability," said John H. Walker, company president and CEO. "With all the steel bankruptcies that have occurred, it’s better for our stakeholders that we avoid that fate by implementing different ways to compete. Faced with receding selling prices and a weakened economy, we need to move quickly to counter actions by mills that have restructured, or plan to restructure, by drastically lowering their costs through means that include them walking away from their retirees and slashing their employees’ wages and benefits." The new labor pacts, in addition to similar contributions by management personnel, include $38 million in annual cost-savings for Weirton Steel. The company is preparing to address changes in employee and retiree health care benefits that could result in additional savings. "Our employees weathered the steel import crisis and now face these new challenges. They’ve never backed down from any threat to our survival and I don’t believe they ever will," Walker commented. "We’re one of just four U.S. integrated steelmakers that have managed to stay out of bankruptcy and that will continue to be our goal. It’s much easier to control your destiny rather than have a bankruptcy court judge do it for you. As long as we stay out of court, the better our chances to succeed and prosper." The contracts, with the Independent Steelworkers Union and the Independent Guard Union, include: · a 5 percent pay reduction (includes management); · a pension plan freeze (includes management); · cancellation of a planned
dollar-an-hour wage increase set for · instead of receiving 100 percent of vacation pay on Feb. 20, half would be paid on that date and the remaining half on July 17. This results in an immediate savings in liquidity of more than $6 million. The contract includes 3,200 unionized employees while like changes affect 530 management personnel. Weirton Steel is the seventh largest U.S. integrated steel company and produces hot-rolled, cold-rolled, galvanized and tinplated steel.
Weirton Steel Corp. Media Contact:
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