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LTV STEEL SEEKS COURT APPROVAL TO REJECT LABOR CONTRACT

 LTV STEEL SEEKS COURT APPROVAL TO REJECT LABOR CONTRACT
 DALLAS, June 22 /PRNewswire/ -- The LTV Corporation (NYSE: QLTV) announced today that its LTV Steel unit has asked the Federal Bankruptcy Court for authorization to reject its labor agreement with the United Steelworkers of America.
 A labor agreement may be rejected under the provisions of Section 1113 of the Federal Bankruptcy Code after negotiations fail to produce an acceptable new labor agreement. The company said that deep, fundamental differences still separate the company and union positions, even after the latest round of intense bargaining.
 "We are very disappointed that the negotiations have failed to produce even a conceptual understanding with the steelworkers. We are hopeful that the 1113 process will enable the company and the union to reach a satisfactory labor agreement as quickly as possible," said J. Peter Kelly, president of LTV Steel.
 The most recent round of negotiations began on May 18, 1992. A previous round was held from March 5 through March 27. Senior level discussions between the company and the union began in June 1991.
 The company remains committed to good faith bargaining and is confident that an acceptable agreement can be reached. In the meantime, the existing labor agreement remains in effect. The company does not intend to implement unilateral modifications to the labor agreement until the outcome of the LTV Aerospace and Defense sale is certain. Additionally, in the event that sufficient cost savings are not achieved, the company has asked for the authority to reject its hourly pension agreements so that it may terminate its hourly pension plans.
 "The company and its creditors have worked for nearly six years to develop a Plan of Reorganization based on the principle of fairness," said Kelly.
 "The time has come to create a labor agreement that assures the future viability of LTV Steel, recognizes the substantial sacrifices made by all the other parties in the bankruptcy, and is fair to our employees, retirees and their families," he said.
 "The lack of progress in these important negotiations places at risk the Plan of Reorganization for the company, and could jeopardize the jobs and wages of 17,000 employees, pensions of 61,000 retirees and health care benefits of more than 145,000 employees, retirees and their families. And we can't lose sight of the fact that there is no PBGC-type backstop for health care protection. Without LTV Steel our retirees would have no company-paid medical coverage," Kelly said.
 "Our company, employees and retirees are being offered a second chance to succeed. After all the sacrifice and years of hard work that have been invested in our reorganization, it would be tragic if the company, its employees and the steelworkers do not bring this long, difficult bankruptcy to a successful, timely conclusion," Kelly said.
 LTV Steel is a leader in the manufacture of high-quality engineered flat rolled, tin and tubular steel products for demanding customer applications. It is a wholly owned subsidiary of The LTV Corporation.
 -0- 6/22/92
 /CONTACT: Jerry Dalton of The LTV Corporation, 214-979-7964; or Mark R. Tomasch of LTV Steel Company, 216-622-4635/
 (QLTV) CO: LTV Corporation ST: Texas IN: MNG SU:


BM -- CL010 -- 2367 06/22/92 11:50 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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