Tentative contract assures coverage

The proposal would require WCI to continue investing in its Warren mill.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- WCI Steel retirees would be assured of continued health insurance coverage under a tentative contract the company has negotiated with United Steelworkers of America.
A summary of the contract proposal the union released to members of USWA Local 1375 says retiree benefits would be paid by a benefit trust funded by fixed contributions from the company and additional contributions based on WCI's profit levels.
The union said the goal of what it called a "groundbreaking" plan is to establish a trust that could fully fund retiree health care in the future, "irrespective of the future existence of the company."
WCI spokesman Tim Roberts declined to comment, saying the company won't discuss the agreement until it is ratified by the union. Local 1375 president Mike Rubicz could not be reached.
Must be approved
The tentative agreement, announced last week, also must be approved by the United States Bankruptcy Court in Akron, and it won't take effect until the day WCI emerges from Chapter 11 bankruptcy protection. Company officials have set a June 1 target date for emerging from bankruptcy.
Union leaders said the pact would require WCI to continually reinvest in its Warren steel mill. The company would not be allowed to idle the mill and replace its output with foreign-made steel.
If approved, the 41/2-year agreement would divide production and maintenance workers under seven job descriptions in five job classes -- the union's current contract has 34 job classes. Office and clerical workers would be divided among three descriptions and three job classes, down from 16 job classes.
Local 1375 represents about 1,400 production, maintenance, office and clerical workers at WCI. Union leaders reported they are preparing a more detailed summary for members and will schedule informational meetings and ratification votes.
vinarsky@vindy.com