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Settlement at LTV Steel Co.

Negotiators for the LTV Steel Co. and the Steelworkers have reached a settlement extending their collective bargaining agreement by 10 months. The new agreement, which covers some 14,000 production and maintenance workers, supersedes the contract that was to expire in August 1993.

The pact enhances pension and health benefits while freezing wages and allowing a cutback of about 200 jobs. The accord averted a threatened strike by the union and an attempt to void the contract by the company, and allowed LTV, the third largest domestic steelmaker, to continue its efforts to complete its bankruptcy reorganization begun in July 1986.

The specific terms of the settlement called for

* a wage freeze (the current rate is about $14 an hour);

* an agreement on productivity improvements that are expected to result in elimination of some jobs and decreased staffing requirements;

* establishment of an optional managed-care health plan and increased "out-of-pocket" expenses for employees who retain the traditional indemnity plan;

* a 14-percent increase in the monthly pension rate, from $18.50 to $21.50, for each year of credited service;

* an increase in the monthly supplementary pension (for retirees with at least 30 years of service);

* continuation of company payments, but at a lower rate, for retirees' health care;

* company stock ownership plan concessions by employees;

* pension benefits for service before 1987 based on the greater of two calculation methods;

* 7 percent Of LTV Steel's common stock to employees when the company emerges from bankruptcy;

* a union seat on the board of directors of LTV Steel or its parent company, LTV Corp., depending on the structure of the company; and

* payments to permanently laid-off employees, ranging from $1,000 to $25,000.

LTV expects the contract to produce $60 million in annual savings, which will keep the company viable.
COPYRIGHT 1992 U.S. Bureau of Labor Statistics
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Title Annotation:collective bargaining agreement
Author:Cimini, Michael H.; Behrmann, Susan L.
Publication:Monthly Labor Review
Date:Nov 1, 1992
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