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USW objects to RG Steel retention plan

Keywords: Tags  RG Steel, steel, bankruptcy court, United Steelworkers uniion, USW, employee retention plan, health care, Chris Prentice


NEW YORK — The United Steelworkers union has filed an official objection to bankrupt steelmaker RG Steel LLC’s employee retention plan, according to documents filed in U.S. Bankruptcy Court in Delaware.

The Sparrows Point, Md.-based company is seeking the bankruptcy court’s approval of an employee retention plan, which would pay a $2,000-per-month stipend—partly for health insurance costs—to about 21 "key" employees during the wind-down process at the former steelmaker’s facilities (amm.com, Nov. 9).

"There simply is no legal or factual basis for approval of the (employee retention plan) motion, which proposes to give a substantial gratuity to 21 employees for six additional weeks of work while thousands of former employees face financial ruin resulting from lost employment and unpaid medical claims," the USW said in court documents filed Thursday.


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