Union Approves LTV Deal, Keeps Benefits

August 29, 2001 (PLANSPONSOR.com) - Members of the United Steelworkers union have voted 4,010 to 471 in favor of a new labor contract with LTV, which may keep the nation's third largest steelmaker from going out of business.

In exchange for transferring a 20% ownership stake in the company to the union, LTV will reduce the workforce by 1,300 full-time equivalent positions, but keep the company health benefits and pension plan.

LTV originally planned to cut only 500 jobs and do away with health and retirement benefits, but the union opted for more job cuts instead.

The new contract allows LTV to pay current health care costs with approximately $140 million borrowed from the union’s benefits guarantee fund.
LTV has been under bankruptcy court protection since December 2000 and said in June that it would be forced to liquidate by September without a new labor contract.

The new contract, which covers 9,000 LTV Steel employees, would run through February 1, 2006.

– Camilla Klein                           editors@plansponsor.com

Read more at Benefits Play a Role in LTV, Union Agreement .