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CLEVELAND--(BUSINESS
WIRE)----
USWA-Negotiated
Trust Fund Will Finance New Prescription Drug Plan for Union
Retirees Who Lost Coverage in Four Steel Company Bankruptcies
Retirees who lost health care benefits in four steel company bankruptcies will have a measure of that coverage restored March 1, thanks to an innovative trust fund bargained by the United Steelworkers of America (USWA) and International Steel Group, Inc. (NYSE:ISG), the union announced in a press conference here today. "Nothing can undo the damage inflicted by the termination of retiree health care benefits," said USWA President Leo W. Gerard, "but we could - and did - negotiate a commitment that our retirees will not be forgotten. "Today, we are pleased to announce the first step in keeping that promise, a new prescription drug program for USWA retirees from LTV, Bethlehem Steel, Acme Metals and Georgetown Steel," he said. The union's December 2002 collective bargaining agreement with ISG established an innovative trust fund - the ISG Voluntary Employees' Beneficiary Association (ISG VEBA) - for the sole purpose of restoring a measure of coverage for retirees, surviving spouses and their dependents who lost health care benefits as a result of the bankruptcy and liquidation of the four companies. The ISG VEBA is funded by contributions from ISG, based on company earnings and steel tonnage. Benefits are jointly determined by ISG and the USWA, depending on funds available in the trust and the needs of eligible retirees. "The program was not designed to restore everything that was taken away from our retirees in bankruptcy court," explained David McCall, Director of USWA District 1 and the union's chief negotiator with ISG. "Our goal was to provide a meaningful, ongoing benefit, as quickly as possible, that meets one of our retirees' most urgent needs." The ISG VEBA has projected assets of approximately $180 million as of the end of 2004, with continuing contributions required from ISG through 2008. In contrast, Bethlehem Steel's salaried retirees who also lost health coverage have received $2.7 million in a settlement approved by the bankruptcy court. The Steelworker-negotiated VEBAs at ISG and other steel companies are historic in being the first ever to restore benefits to retirees who had worked for bankrupt or liquidated companies that had been purchased by new firms. www.uswa.org United Steelworkers of America Tony Montana, 216-702-6651 John Duray, 412-562-2592 01/07/2005 13:45 ET |