Judge: I can't stop LTV closing

Police estimated that a crowd of more than 800 steel workers and retirees were demonstrating outside the courthouse.
By DON SHILLING
and CYNTHIA VINARSKY
VINDICATOR BUSINESS STAFF
YOUNGSTOWN -- A federal bankruptcy judge deciding the future for thousands of LTV steel workers and retirees said today that he has a "limited role" in the procedure and cannot force the steelmaker to stay open.
Judge William Bodoh made the statement as hundreds of steel workers and LTV retirees demonstrated outside the federal courthouse downtown, chanting "Save our jobs!"
In an opening comment, the judge told the audience in a packed courtroom that he cannot prevent LTV Steel from closing any of its plants and that the court hearing will deal only with the company's ability to sell its assets.
Vast impact: LTV's plan to halt its basic steelmaking operations would affect about 7,500 employees, including about 200 at the LTV Steel Coke Plant in Warren, and would eliminate health benefits and reduce pension payments for between 6,000 and 7,000 retirees in the Mahoning and Shenango valleys.
Judge Bodoh said only the LTV board of directors and its officers can make a decision to keep the facilities open.
He said he understands, from papers filed with the court, that politicians, unions and area governments want LTV's basic steelmaking to continue, but federal law does not permit him to force a company to continue operating.
Judge Bodoh was beginning to hear evidence this morning on whether LTV can justify selling its steelmaking plants and equipment.
Richard Lewis, Youngstown police chief, estimated the crowd outside the courthouse on Market Street at about 800. Police had sealed off a one-block area of Market between Front and Boardman streets to accommodate the crowd.
Other states: Besides steel workers and retirees from the Youngstown and Warren areas, United Steelworkers of America had representation from LTV plants in Indiana, Illinois and the Pittsburgh and Cleveland areas. Several area labor unions also had representatives at the rally.
Tony Sabo, a craneman at WCI Steel in Warren, said the outcome of the LTV case will have an impact on many WCI workers, like himself. The Warren integrated steel plant was once owned by LTV, he explained, so many workers' pensions will be affected if the Cleveland mill shuts down.
Ed Machingo, also of WCI, said he's more concerned about the effect the closing could have on his mother, who has an LTV survivor's pension. Machingo's father worked at LTV for 37 years.
George Easi, a retired crane operator who worked 321/2 years at LTV's Hennepin, Ill., finishing mill, said the loss of health benefits will be especially painful for the retirees. "We worked hard for what we got," he said. "It's not right for them to drop our benefits now that we worked all our lives for them."
Meanwhile, federal and state legislators are trying to improve a rescue package for LTV Corp.
State Sen. Tim Ryan of Niles, D-32nd, said Monday that Democratic legislators from northeast Ohio agreed to seek more state money for the cash-strapped steelmaker.
Ryan said he remained hopeful but realized that time was growing short.
"We're running the two-minute drill now," he said.
State budget: Ryan said state legislators from northeast Ohio will contact legislators in Columbus who are working on the state budget to see if money can be freed up for Cleveland-based LTV.
Ryan said he couldn't discuss an amount that they are seeking or what LTV would use the money for. The group, which is working with union officials, is looking into whether LTV could use the money for operating expenses, he said.
This money would be an addition to money for loan guarantees that have been offered by the state, Cleveland and Cuyahoga County.
LTV has applied for a guarantee under a federal program that would back 85 percent of a $250 million loan. Local and state money would guarantee 13 percent more.
Ryan said federal legislators from the Cleveland area intend to ask leaders in Congress "to keep the guarantee program in place so LTV has it as an option."
Prayer vigil: After Ryan's news conference, clergy members from the Cleveland and Youngstown areas started a 24-hour prayer vigil outside federal bankruptcy court.
"The goal is to get justice, keep hopes alive and keep the fires burning at LTV," said the Rev. Werner Lange of Auburn Community Church in suburban Cleveland.
If a shutdown of steel mills takes place, LTV/Copperweld Tubular Products in Youngstown, a subsidiary of LTV Corp., has an office and pipe plant that would continue operating. They employ about 100 people.
LTV has been operating under the protection of bankruptcy court for a year but said last month that it doesn't have the customers to keep making steel.
Plan formed: The steel workers union and LTV's unsecured creditors have responded with a plan to keep the company going.
The proposal would allow LTV to cut costs by reducing wages, delaying pay raises and making changes to health insurance. The union and creditors hope the savings will be enough for LTV to receive financing, but U.S. Rep. Steve LaTourette, a Cleveland-area congressman, told The Plain Dealer that the agreement doesn't meet standards for receiving a guarantee.
shilling@vindy.com