| Return to Steel News Headlines| Print This Page |

Weirton Steel to Provide $1.4 Million
for Management Retirees

April 3, 2004 — Weirton Steel Corp. will provide $1.4 million to fund insurance benefits assistance for approximately 1,000 non-union represented retirees. The payment is the result of an agreement between the company and a committee comprised of hourly and management retirees. The committee was formed under federal bankruptcy law to deal with retiree benefit issues.

Last month, bankruptcy Judge L. Edward Friend II granted Weirton Steel’s motion to terminate health care and life insurance benefits for 9,500 retirees, their spouses and certain dependents. The termination was effective April 1. An agreement between the Independent Steelworkers Union (ISU) and International Steel Group (ISG) Inc. resulted in benefits assistance funds to be paid by ISG, but only for union-represented retirees.

“Since management retirees were not included in the ISU/ISG program, an agreement was reached with the retiree committee in which Weirton would provide funds to help the committee formulate a term life insurance program for this retiree group. With these funds, the non-union retirees could develop a term life insurance program. Any such assistance will provide at least some peace of mind for these retirees and their loved ones,” said D. Leonard Wise, Weirton Steel CEO.

Weirton Steel has agreed to sell virtually all of its assets to ISG for $225 million subject to court approval. A hearing on the sale is set for April 14. The ISU recently ratified a labor agreement with ISG.

Weirton Steel is the fifth-largest U.S. integrated steel producer and the nation’s second largest producer of tin mill products. The company filed a voluntary petition for Chapter 11 bankruptcy on May 19, 2003, in Wheeling, W.Va.

Close Window