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WCI Steel Reaches Tentative Pact with Steelworkers Union
By Dan O'BrienWARREN, Ohio -- WCI Steel Inc. has reached a tentative labor agreement with the United Steelworkers of America, an integral piece of a restructuring plan the company is pursuing through U.S. Bankruptcy Court in Akron.WCI spokesman Tim Roberts reports the accord was reached last night with Local 1375, which represents some 1,400 hourly workers at the plant. The agreement is expected to be signed by officials over the next several days. Once that is completed, the agreement will be placed before Local 1375 for ratification. Then the bankruptcy court must approve the pact.Mike Rubicz, president of Local 1375, says the contract mirrors recent agreements forged between the Steelworkers and companies such as International Steel Group, Wheeling-Pittsburgh Steel Corp. and U.S. Steel Corp. Rubicz declined to divulge any of the specifics of the agreement, but noted, "It follows the pattern of the self-directed work force" established by these earlier contracts. Negotiations with Local 1375 began about a year ago, Rubicz states. Over the last 2 1/2 months, the Steelworkers' international in Pittsburgh started bargaining sessions in earnest with the company, he said.WCI filed for Chapter 11 protection in September 2003, citing the effects of a hard-hitting recession, low-cost imported steel flooding the U.S. market and exorbitant energy costs. In February, the company posted its first monthly gain -- $1.7 million -- since October 2002. The company has lost money both of the last two years after more than a decade of reporting annual profits.The company is working through a reorganization plan it intends to submit to the bankruptcy court by May 15. WCI's bondholders recently filed a motion requesting that the court prohibit the company from submitting such as plan and instead approve the reorganization plan the bondholders drafted. Contact Dan O'Brien: [email protected] "