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STEELWORKERS, LTV TO SEEK COURT APPROVAL OF CONTRACT ON AUG. 12; VOTE COUNT SCHEDULED FOR SEPT.4

 STEELWORKERS, LTV TO SEEK COURT APPROVAL OF CONTRACT ON AUG. 12;
 VOTE COUNT SCHEDULED FOR SEPT.4
 PITTSBURGH, July 23 /PRNewswire/ -- The United Steelworkers of America (USW) and LTV Steel (NYSE: QLTV) announced today they will appear before U.S. Bankruptcy Court Judge Burton Lifland in New York on Aug. 12 to seek his approval of a tentative labor agreement they reached last week.
 In addition, the union said the membership vote on the contract will be counted here Sept. 4.
 Lifland's clerk originally had scheduled the court appearance for July 30, but the company and union determined that date could not be met in light of the amount of work involved in finalizing the language of the agreement. Lifland agreed with their assessment.
 The USW will provide written summaries of the agreement to the 14,000 union members employed at LTV facilities in six states, as well as hold membership meetings to answer any questions they may have. The members will vote to accept or reject the contract by secret mail ballot. The votes will be counted in Pittsburgh on Sept. 4, following the conclusion of the union's 26th Constitutional Convention.
 Among other things, the agreement calls for the union to have a seat on the company's board of directors, increases pensions for future retirees to an unprecedented level in the steel industry, provides $250 million in collateral to guarantee pension and insurance payments for present and future retirees, offers a managed health care package that retains the present level of benefits while reducing costs, and gives workers 7 percent equity in the post-bankruptcy LTV.
 Anthony Rainaldi and Jack Parton, chairman and secretary respectively of the USW negotiating committee, termed the settlement a landmark in the steel industry. They hailed the gains achieved by the negotiation committee, and described the package as a major step toward assuring the viability of the company and the employment security of the union work force.
 "The union negotiating team convinced the company to back off the huge wage and benefit cuts it had been demanding and to recognize the sacrifices the members' had made to keep LTV afloat through six-plus years of bankruptcy," Rainaldi and Parton said. "Not to have done so could have been fatal. The result was that collective bargaining worked. This means our active members can look forward to secure employment, and both our active and retired members will receive the benefits to which they are entitled and for which they have worked so hard.
 "We did not think a bankrupt company was the company to begin our new round of steel industry negotiations with. This is a short-term agreement designed to get LTV out of Chapter 11. The June 1994 termination date is only 10 months after the expiration date of contracts we have with other major producers, and it will position the LTV for the next round of across-the-board bargaining."
 The agreement becomes effective on the date Lifland issues an order confirming the LTV plan of reorganization. It expires June 1, 1994. Here are its highlights:
 -- An array of improvements for future pensioners, establishing LTV as the pension leader in the steel industry;
 -- Increases in pension payments for all 30-year employees to a minimum lifetime guarantee of up to $1,200 a month; for 30-year employees retiring at age 55, benefits of up to $1,600 per month until age 62;
 -- Increased payments to surviving spouses;
 -- For current and future retirees, full retention of pension and insurance benefits;
 -- An optional Managed Care health program that provides a cash bonus for those who participate; 100 percent coverage for most services, except a $10 co-pay for office visits (currently, there is a deductible to be met followed by 20 percent payment of office visits); routine physical examinations for the $10 co-pay; no claim forms; preventive care and well-baby care;
 -- Continuation of retiree health insurance for employees retiring on immediate pensions no matter what age, and retention of 50 percent company payment of optional major medical coverage for retirees;
 -- 7 percent of company stock to be issued to active workers;
 -- Guaranteed payment of 14 cents an hour in a profit-sharing plan;
 -- A union lien on company property to secure retiree insurance benefits and payments to the Defined Contribution Pension plan enacted after the company entered bankruptcy. The lien will be in the amount of $50 million at the effective date of the agreement, then increments of $50 million every six months for a total of $250 million;
 -- A joint program to train workers for trade and craft jobs, a first in the industry;
 -- Special pension gains for employees of Erie Mining, the iron ore subsidiary of LTV;
 -- An increase to $8,800 from $5,500 in the amount of money that 70/80 and Rule-of-65 retirees may be earn without reduction in their pension benefits. This provision applies to both present and future retirees, a first in the industry;
 -- A company-wide reduction of 218 jobs to be achieved by attrition with buyouts of up to $25,000 for employees eligible for retirement;
 -- $500 lump sum payments to trade and craft incumbents in exchange for expanded trade and craft jobs; and
 -- A wage freeze.
 -0- 7/23/92
 /CONTACT: USW Communications Department, 412-562-2442/
 (QLTV) CO: United Steelworkers of America; LTV Steel ST: Pennsylvania IN: MNG SU: CON


CD -- PG010 -- 2466 07/23/92 11:31 EDT
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Date:Jul 23, 1992
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