USW: Many are interested in RG Steel facilities

Staff report

WARREN

More than 100 potential investors or entities have expressed interest in at least one of the idle RG Steel facilities, including the Warren plant, and in continuing to make steel, according to the United Steelworkers union.

The USW released a membership update to members, the first public announcement from the union since the bankruptcy process began. The USW represents workers at RG Steel-Warren.

“The USW has cooperated with potential investors who expressed an interest in making steel and provided information to support their due diligence and research,” according to the USW.

“Although we cannot speculate about the rationale of those parties for their decisions against purchasing our mills, there should be no doubt that if a buyer emerges with financing and a desire to make steel with our members at any of these facilities, the USW will step up to the plate and fight to make it happen,” according to the statement.

No one at the union hall Thursday had seen the letter from the USW.

Most of RG’s mills were sold to a party whose business generally is liquidating plants, despite USW efforts to find an operator.

“If a potential operator had actually appeared at the auction, the USW certainly would have stood up to support them,” according to the union. “However, only liquidators showed up for the auctions of Sparrows Point and the other RG mills.”

The union was able to negotiate a modified agreement that extended health care for affected workers through the end of August and secured several months to look for operators; workers also maintain some rights if a buyer appears.

The union is trying to “mitigate the impact of this series of catastrophic events on the members and retirees” by providing information about programs available to assist them.

The USW has not provided more information because the companies it has worked with have insisted on confidentiality, according to the USW.

More than 1,200 people from the Warren plant have been out of work since June, after RG Steel declared bankruptcy at the end of May. Active members of the USW who worked at RG Steel lose their health benefits today.