MORGANTOWN, W.VA. Weirton to lay off managers, cut wages

Management cuts show the union that everyone is sacrificing, the CEO says.
MORGANTOWN, W.Va. (AP) -- Weirton Steel Corp. will lay off "a significant number" of management staff as it reorganizes and cut the wages and health-care coverage of those who remain, President and CEO John Walker said Wednesday.
The layoffs are indefinite and will begin later this month, Walker said. The precise number of workers affected will be announced within the next 10 days, he said.
Weirton Steel currently employs 3,533 people, 516 of whom are nonunion. Earlier this year, the wages of all employees were reduced 5 percent. The latest pay reductions, which begin in July, would affect only management.
"There is no decision as difficult as when it involves personnel issues," Walker said. "As painful as it is to take these actions, they are necessary steps to improving the company's outlook."
Bankruptcy
The nation's No. 2 producer of tin filed for Chapter 11 bankruptcy protection May 19 after racking up more than $700 million in losses over five years. The company expects to file a reorganization plan within 180 days, or by mid-November.
Walker said the management cuts were financially necessary as well as a symbolic move, intended to show the Independent Steelworkers Union that everyone will make sacrifices.
"We need to do it and we know that part of our job is to lead change -- and we're going to lead change," Walker said.
Union leaders have publicly expressed fear that retiree benefits will be sacrificed for the company's long-term survival, but Walker has said he is committed to paying "the highest level of benefit that we can afford."