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Steelworkers Support ISG-Ispat Merger
PITTSBURGH -- The United Steelworkers of America is welcoming yesterday's announcement that International Steel Group Inc. will become a part of the new Mittal Steel Co., formed when Ispat International, headquartered in Rotterdam, The Netherlands, acquires LNM Holdings and ISG. The new entity will be the largest steel company in the world and its North American operations -- combining ISG with Ispat-Inland and certain other assets will be the largest in North America, employing more than 17,000 USWA members in North America."Our union has been a driving force in the consolidation of the steel industry in the U.S.," said USWA International President Leo Gerard. "Larger, stronger steel companies benefit our members and retirees. We want our members to work for companies that are able to meet their obligations to them, while having the ability to compete in the global steel market. This is a positive development, and we are looking forward to a more secure future of our Steelworkers and the domestic steel industry."The USWA has succeeded in negotiating direct involvement in an ongoing relationship, Gerard said. "We have secured the commitment to maintain and grow steelmaking and finishing capacity in North America," he said."We are looking forward to the addition of the Ispat-Inland membership into the ISG collective bargaining group," added David McCall, USWA District 1 director and chairman of the union's ISG bargaining committee. "We have negotiated an agreement that protects our domestic steelmaking capacity and improves the formula for contributions into the VEBA fund that is set up to provide health care benefits to retirees of LTV Steel, Bethlehem, Acme and Georgetown Steel companies."Our membership's profit sharing is protected, along with language protecting our rights to a successorship agreement if the company is sold," McCall continued. "The company's neutrality in organizing new members at newly acquired facilities is also included in the collective bargaining agreement."Jim Robinson, District 7 director and chairman of USWA's bargaining committee with Ispat-Inland Steel, said, "This merger provides for an expansion of the ISG agreement to include the Ispat-Inland membership. We believe this merger secures the future of Ispat-Inland's steelworkers and retirees and we look forward further negotiations in a healthy steelmaking climate."Under the terms of the merger agreement, ISG shareholders will receive $21 per share in cash and a number of Mittal Steel shares equal to $21 divided by the average closing price of Mittal Steel for the 20 trading days prior to closing, up to a maximum of 0.6087 shares and a minimum of 0.4793 shares, officials reported yesterday. The value in the merger is expected to be $42 per ISG share, or $4.5 billion in the aggregate.Visit United Steelworkers of America: www.uswa.org"