Judge William Bodoh, overruling the objections of shareholders, approved the company-endorsed deal struck between the union and a committee of creditors.
High on the list of shareholders objections was a provision that offers steelworkers company stock, profit sharing and a second board seat, effectively giving the union 20% of LTV.
In addition, the deal reduces LTV’s work force by 1,300 by means of attrition, overtime reductions and cuts in contractor labor before any layoffs. Originally only 500 jobs were to be trimmed, but the union agreed to more to save health benefits and pensions.
Under the agreement, the steel maker would be able to borrow $140 million from an existing benefits guarantee fund, created by the union as a hedge against bankruptcy, to pay current health care costs.
The new labor contract would run through February 2006, and cover 9,000 employees.
– Camilla Klein email@example.com
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