CSC LTD. Bankers deny request to pay for CSC benefits

THE VINDICATOR, YOUNGSTOWN
Twenty workers still perform maintenance in the plant.
WARREN -- Bankers have denied a request by CSC Ltd. to pay for benefits for the 20 people still working in the mill.
The denial means CSC cannot offer health-care benefits to laid-off workers and retirees at their own expense, Guy Catania, vice president of human resources for CSC, said today.
CSC and the United Steelworkers of America have been trying to find a way to offer benefits to the 1,100 hourly workers and 260 retirees since coverage expired this month.
Judge William T. Bodoh of U.S. Bankruptcy Court in Youngstown ruled March 30 that lenders cannot be forced to pay the weekly, $170,000 health insurance premium.
Expense: Lenders said the expense was too great for the mill, which has shut down operations but still has people in the plant performing maintenance.
With the lenders refusing to pay for benefits of the workers still on the job, they will be receiving pay only, Catania said.
The number of people working gradually will be reduced to 15 starting next week, he said.
A federal law, known as COBRA, allows workers to pay for coverage themselves after they leave a job. In CSC's case, however, the health plan has been terminated so the workers cannot buy into the plan.
Anthem Blue Cross/Blue Shield met with workers Monday to talk about health-care alternatives.
About 1,300 retirees of the former Copperweld Steel Co., a CSC predecessor, still have health benefits under a separate fund.
CSC is trying to find a buyer for the mill, but lenders have said they do not think that is likely. CSC has until Friday to find a buyer or lenders can begin the process of selling the mill and its equipment piece by piece.