News From the United Steelworkers of America: Unions Form Unity Council to Promote Long-Term Viability in Ormet Restructuring.

PITTSBURGH -- 'Company has shown no interest in working with its workers, instead has chosen self-destructive path of confrontation,' Steelworkers, Operating Engineers, Longshoremen say

Unions representing workers at Ormet Corp. facilities in Ohio, West Virginia and Louisiana have established a Unity Council to promote a restructuring that "secures a viable, long-term future for the Company, its employees, retirees, suppliers and the communities in which is operates," the unions announced today.

In a joint resolution approved by United Steelworkers of America (USWA) Locals 5724, 5760, 5760-01, 14465-01, International Union of Operating Engineers (IUOE) Local 406 and International Longshoreman's Association (ILA) Local 3033, the three unions said they "will each do everything in our power to ensure that (Ormet) is reorganized in a way that respects our members and retirees and creates a Company that honors its commitments."

The USWA, IUOE and ILA represent unionized employees of Ormet at the company's Hannibal Reduction Division and Hannibal Rolling Mill Division in Hannibal, Ohio; Bens Run Recycling Facility in Friendly, W. Va.; Burnside, La., Terminal and Burnside, La., Refinery.

"The Company has shown no interest in working with its workers and their Unions and has instead chosen the path of confrontation with each of our organizations," the unions said in their joint resolution, which detailed company actions at each of the facilities:

--"The Bankruptcy Court has rejected the Steelworkers' labor agreements at the Reduction and Rolling Mills despite Ormet's unconscionable, bad faith delays in providing the necessary information needed to evaluate the Company's proposals and despite the Steelworkers having put forth a reasonable proposal which could provide the Company with a long-term future;

--"The Operating Engineers have been faced with similar delaying tactics by ORMET in providing information, had reasonable proposals refused by ORMET and had a contract implemented despite ORMET's bargaining in bad faith;

--"The Longshoremen at ORMET's Terminal and Steelworker members at the Burnside Refinery and Bens Run are facing requests for further concessions that only serve to degrade the living conditions of active and retired ORMET employees."

The unions "pledged to work together and to fully support each other in every way possible," the resolution concluded, adding that "We will each do everything in our power to ensure that the Company is reorganized in a way that respects our members and retirees and creates a Company that honors its commitments."

The ORMET Unity Council Resolution of Solidarity follows.

The ORMET Unity Council

Resolution of Solidarity

Whereas, the United Steelworkers of America, International Union of Operating Engineers and International Longshoremen Association represent the unionized employees of ORMET Corporation at its Hannibal, OH Reduction Plant and Rolling Mill, Bens Run, WV Recycling Operation, Burnside, LA Terminal, and Burnside, LA Refinery;

Whereas, each Union is determined that the Company's Plan of Reorganization secures a viable, long-term future for the Company, its employees, retirees, suppliers and the communities in which it operates;

Whereas, the Company has shown no interest in working with its workers and their Unions and has instead chosen the path of confrontation with each of our organizations;

--The Bankruptcy Court has rejected the Steelworkers' labor agreements at the Reduction and Rolling Mills despite ORMET's unconscionable, bad faith delays in providing the necessary information needed to evaluate the Company's proposals and despite the Steelworkers having put forth a reasonable proposal which could provide the Company with a long-term future;

--the Operating Engineers have been faced with similar delaying tactics by ORMET in providing information, had reasonable proposals refused by ORMET and had a contract implemented despite ORMET's bargaining in bad faith;

--the Longshoremen at ORMET's Terminal and Steelworker members at the Burnside Refinery and Bens Run are facing requests for further concessions that only serve to degrade the living conditions of active and retired ORMET employees;

Be it Therefore Resolved, that the Steelworkers, Operating Engineers and Longshoremen hereby form a Unity Council and pledge to work together and to fully support each other in every way possible. We will each do everything in our power to ensure that the Company is reorganized in a way that respects our members and retirees and creates a Company that honors its commitments.