Weirton Steel retirees object to losing their benefits

By Jeff Pines

Washington, March 11 - Weirton Steel Corp.'s retirees want to protect their health and life insurance benefits and they are fighting to do it. There are about 10,000 retirees receiving benefits.

The company negotiated an asset purchase agreement with International Steel Group on Feb. 18 and then sent the official retirees' committee a letter Feb. 20 in which it said it planned to terminate its retiree benefits effective Feb. 28, the committee said in a March 11 motion filed with the U.S. Bankruptcy Court for the District of Northern West Virginia.

International Steel agreed to buy Weirton Steel in a $255 million transaction subject to an auction and court approval. One of the agreements' provisions is that Weirton will terminate its retiree benefits before International Steel takes over. The company then filed a motion to terminate the benefits on March 15.

The retirees' committee said the company needs a court order or an agreement from its members to modify the benefits.

Citing case law, the committee said the Weirton, W.Va.-based steel company negotiated an agreement with International Steel before it notified the retirees of its plan, which means it did not negotiate with the retirees in good faith since it already had an agreement with International Steel.

Furthermore, the company has not offered the retirees anything, so the committee had no choice, but to reject the proposal, the committee said.

Weirton's Chapter 11 case number is 03-01802. It filed for bankruptcy on May 19.

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