STEELWORKERS PLAN VALLEY RALLY TO SUPPORT PROPOSED BUYOUT OF SHENANGO INC.
SHARPSVILLE, Pa., March 9 /PRNewswire/ -- Steelworkers and other trade unionists from throughout the Shenango Valley will gather here Wednesday, March 10, for a "Rally In The Valley" in support of the effort by the 200 members of United Steelworkers of America (USWA) Local 1032 to purchase the bankrupt Shenango Inc., whose owner has ended production and plans to liquidate the facility, the union said today. The rally is scheduled to begin at 3:30 p.m., at the plant's front gate. It is part of an ongoing campaign begun last Friday, March 5, when the company ended production in preparation for an April 26 closing and eventual liquidation. Jeff Swogger, president of USWA Local 1032, said he was told today by the company that it saw no purpose to a joint meeting with Mellon Bank, Shenango's principal creditor, about the proposed buyout. Swogger said the union would therefore seek a meeting directly with Mellon. A feasibility study conducted for the union by Locker Associates of New York determined that a worker buyout under an Employee Stock Ownership Plan (ESOP) would be viable and that the plant could compete effectively once it emerges from bankruptcy. Shenango Inc., which produces ingot molds for the basic steel and specialty steel industries, filed for bankruptcy protection last Dec. 14. Union members voted Feb. 24, to accept $5.10 an hour in wage and benefit reductions to help the company stay in operation, on condition the company obtain financing through April, and that it reline two furnaces. The conditions were not met, the union said. The workers had made concessions totaling $6.06 an hour last year. Andrew Aloe, president of Shenango Group Inc., told the union that Mellon had not approved the terms of the latest concession package. -0- 3/9/93 /CONTACT: Frank Laaks or Jeff Swogger, both of USWA, in Sharon, Pa., 412-346-3537; or USWA Communications Department, in Pittsburgh, 412-562-2442/
CO: United Steelworkers of America; Shenango Inc. ST: Pennsylvania IN: MNG SU:
CD -- PG010 -- 4616 03/09/93 15:32 EST
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|Date:||Mar 9, 1993|
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