Kaiser requests approval of amendments to retiree benefits, collective bargaining agreements

By Caroline Salls

Pittsburgh, Sept. 20 - Kaiser Aluminum Corp. requested court approval of its second amended agreement with the United Steelworkers that modifies retiree benefits and collective bargaining agreements, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the amended agreement, Kaiser will make up to $8.5 million available under the Voluntary Employee Beneficiary Association (VEBA) medical coverage for up to two years after Kaiser's emergence from bankruptcy. These payments will be in lieu of any variable cash contribution.

Also, if the Pension Benefit Guaranty Corp. does not win its appeal on this issue, four of Kaiser's smaller pension plans, including the Kaiser Aluminum Tulsa Pension Plan, the Kaiser Aluminum Bellwood Pension Plan, the Kaiser Aluminum Los Angeles Extrusion Pension Plan and the Kaiser Aluminum Sherman Pension Plan, will be terminated and assumed by the PBGC.

In addition, Kaiser will begin to participate in the Steelworkers' Pension Trust (SPT) plan, a replacement pension plan, by Dec. 10.

Kaiser and the union reserve the right to renegotiate the rate of hourly contributions made to the SPT plan if Kaiser's hourly contributions in a quarter exceed 2% of all similar contributions made by all participants to the SPT in that quarter.

Also, unused budgeted amounts for VEBA administrative expenses for which Kaiser is required to reimburse the VEBA during its first calendar year will carry over for use in VEBA's second and third years.

A hearing is scheduled for Oct. 24.

Kaiser, a Houston-based aluminum company, filed for bankruptcy on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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