LTV Proposes Cutting Pensions, Retiree Benefits
The Cleveland-based steelmaker says that without those cuts, it could be forced to shut down by September. LTV officials said the plan, if successful, would save the company $800 million a year for five years for a total of $4 billion.
LTV says it pays $70 million in health-care costs for active workers, and $130 million in medical-insurance costs for retirees every year. LTV’s pension fund as it stands will run out by 2003.
LTV filed for bankruptcy on December 29.
It made the proposal to union leaders Friday, a day after announcing plans to shut down a hot-rolled steel plant and lay off 900 workers, saving $700 million.
Through the first two months of 2001, LTV lost $132.7 million.
LTV is expected to meet with union negotiators sometime in the next few weeks to attempt a revised plan.
Once an agreement is obtained, it will still have to be approved by the international union’s executive board and ratified by the union’s rank and file.
– Nevin Adams firstname.lastname@example.org
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