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AMERICAN HOME PRODUCTS AND THE OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION REACH SETTLEMENT

 AMERICAN HOME PRODUCTS AND THE OIL, CHEMICAL AND
 ATOMIC WORKERS INTERNATIONAL UNION REACH SETTLEMENT
 NEW YORK, July 29 /PRNewswire/ -- American Home Products Corporation (NYSE: AHP), the Oil, Chemical & Atomic Workers International Union (OCAW), and a class composed of certain former and current company employees have reached a global settlement in several ongoing disputes.
 The settlement resolves all actions and disputes pending between the company and OCAW, including a class-action lawsuit initiated by the union in the U.S. District Court for the District of Puerto Rico. The agreement is subject to approval by the court and the class-action plaintiffs.
 While American Home Products, OCAW and the class members could have continued to debate the merits of their positions in the courts, they determined that the interests of both employees and the company would be better served by resolving the dispute than by years of protracted litigation.
 "We have expended considerable time and energy on this matter," said Louis L. Hoynes, Jr., senior vice president and general counsel of American Home Products. "We had no interest in prolonging these disputes, so we agreed to end the debate and settle all of our disagreements. A settlement now will clear the way for additional benefits to be made to employees without further delay."
 The disputes stemmed from the closure of a plant in the wake of AHP's acquisition of the A.H. Robins Company which resulted in significant plant overcapacity. Because of the Robins acquisition, American Home Products was compelled to close four facilities: two in Canada, one in Puerto Rico, and one in Elkhart, Indiana. The majority of the production operations at the Elkhart facility were absorbed by the company's existing plants in Hammonton, N.J., and Richmond, Va.
 As part of the proposed settlement, American Home Products created a $24 million fund to resolve all disputes, legal actions and campaigns. After legal fees and expenses, the remaining funds will be used to provide additional benefits for the employees in the class, including a "hardship" fund of $1 million to assist former workers who are in need of emergency economic assistance.
 The $24 million fund created by American Home Products will not affect 3rd Quarter earnings, and will have no significant impact on 1992 earnings.
 American Home Products Corporation has a long history of good relations with its work force, including employees represented by unions. The company has 24 contracts in the U.S. with 22 locals of 11 different AFL-CIO international unions. It is expected that these good relations will continue in the future.
 The Commonwealth of Puerto Rico defendants announced separately that it has reviewed the Union's charges against American Home Products and found them to be without merit.
 -0- 7/29/92
 /CONTACT: John L. Skule, (212) 878-5015, or John R. Considine, Investor, (212) 878-6429, both of American Home Products/
 (AHP) CO: American Home Products Corporation; Oil, Chemical & Atomic Workers
 International Union ST: New York IN: SU:


LR -- NY109 -- 4770 07/29/92 16:31 EDT
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Publication:PR Newswire
Date:Jul 29, 1992
Words:497
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