Ormet gets conditional relief from collective bargaining at two plants

By Jeff Pines

Washington, Nov. 2 - Ormet Corp. obtained conditional relief from its union labor pacts, which takes effect if a new consensual collective bargaining agreement with the United Steelworkers of America cannot be reached.

In the decision, judge Barbara Sellers said the union rejected Ormet's offer "without just cause. Although the USWA denies such a charge and insists that it has insufficient information and wishes to bargain in good faith, the evidence establishes otherwise."

The order was filed with the U.S. Bankruptcy Court for the Southern District of Ohio Monday.

The workers affected belong to the United Steelworkers of America and work at Ormet's Hannibal reduction plant and rolling mill.

Among the changes Wheeling, W.Va.-based Ormet proposes for the workers is to accept modified vacation pay, get 8% of profits distributed to the employees' 401(k) plan, start contributing toward monthly health insurance premiums, replace the prescription-drug plan with a new three-tier formulary plan, and eliminate the two-year unemployment benefit and medical benefits during future layoffs.

About 900 employees at the reduction plant and 495 employees at the rolling mill would be affected by the changes if they are implemented. Ormet, an aluminum company, estimates these changes would save it $9.4 million a year at the reduction plant and $5.2 million at the rolling mill.

Ormet filed for bankruptcy on Jan. 30, 2004. Its Chapter 11 case number is 04-51255.

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