LTV OKs extended benefits

LTV is paying $2 million a week for health care and unemployment benefits for laid-off workers.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- LTV Corp. has agreed to extend benefits for laid-off workers and keep its Warren coke plant idling for an extra month.
"We're really happy," said Mark Shaw, a staff representative for the United Steelworkers of America.
The deal between LTV and the union, reached Wednesday in U.S. Bankruptcy Court in Youngstown, still has to be put in writing and approved by Judge William T. Bodoh.
Shaw said laid-off workers would receive health-care coverage and half of their supplemental unemployment benefits through Feb. 28, which is how long LTV has agreed to keep its steel mills in Cleveland and Indiana idling as it attempts to find buyers.
Before the deal was reached, Judge Bodoh was conducting a hearing on LTV's motion to cancel the union labor contract, which immediately would have ended benefits for workers.
Nearly all of LTV Steel's 7,500 workers are out of work as it idles the two steel mills and a finishing mill in Illinois. With regular unemployment payments and the company-paid supplemental unemployment benefits, Steelworkers typically earn about 70 percent of their base pay when laid off.
Terms of agreement: The deal also would keep LTV's coke plants in Warren and Chicago idling until Jan. 31, instead of Dec. 28, Shaw said.
The method of operation may change, however.
LTV said two weeks ago that it would keep the plants on low production, which has kept most of the 200 employees on the job in Warren.
Shaw said the plants now will be kept warm with natural gas, instead of using coal to keep minimum production going. Bill Prejsnar, a union official at the plant, said, however, that no decision has been made.
Using natural gas would require fewer workers but would keep the furnaces warm to prevent them from being severely damaged by a cold shut down.
Mark Tomasch, an LTV spokesman, declined to talk about the specifics of the deal.
He said efforts to sell the mills and coke plants are continuing but there are no firm offers. The union still is hoping to receive a $250 million federal loan guarantee that a buyer could use in restarting operations.
Benefit costs: David Carroll, LTV vice president of industrial relations, testified Wednesday that health-care coverage and supplemental unemployment benefits cost LTV $2 million a week.
Health-care coverage for retirees also costs $2 million a week, but that cost is being paid by a separate company fund that was started in case the company ran into trouble. Tomasch said that fund has enough money to last eight to 12 months.
Though retirees will not have health-care coverage when the fund runs out, they will receive pension payments from the federal Pension Benefit Guarantee Corp.
Shaw said the 3,500 workers at LTV Copperweld and LTV's tubular division will continue to work under old contracts under the deal to be given to Judge Bodoh.
LTV said it intends to maintain those operations because it wants to sell them. The tubular division employs about 120 people in Youngstown, although 15 are laid off, company officials said.
shilling@vindy.com