Wheeling-Pittsburgh Files NLRA Charge Against Steelworkers
06/12/2008 - Wheeling-Pittsburgh Steel files a charge under the National Labor Relations Act against the USW for its claims that it can block the proposed acquisition of the company by Essar Steel Holdings, as well as its attempts to block the sale.
Esmark Inc. subsidiary Wheeling-Pittsburgh Steel Corp. has filed a charge under the National Labor Relations Act (NLRA) against the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Services Workers International Union (the USW).
Wheeling-Pittsburgh’s charge alleges multiple violations of federal labor law in connection with the USW's repeated claims that they can block the proposed acquisition of the company by Essar Steel Holdings Limited, as well as its attempts to block the sale. The charge identifies specific public and private statements made on behalf of the USW stating that:
(1) The USW will not deal with Essar or enter into an agreement with Essar.
(2) The USW has the right to veto any proposed transaction between the company and Essar under the successorship provision of its collective bargaining agreement.
(3) The company must cease any proposed transaction with Essar because the USW supports the purchase of the company by OAO Severstal.
The company believes that these and other actions violate the NLRA, which governs issues between unions and employers.
The NLRA charge follows Essar’s written statement to the USW that it was prepared to recognize the USW as the employees' bargaining representative, to assume the collective bargaining agreement the USW has in place, and to negotiate a new collective bargaining agreement on an expedited basis if the USW so desired.
“The collective bargaining agreement with the USW has provisions designed to protect employees by requiring a purchaser to recognize the USW and assume their labor agreement under certain circumstances,” said Esmark President Craig Bouchard. “We have always supported that protection for our employees. The USW seeks to turn what was intended as a shield of employee protection into a sword to veto business transactions that lie within the proper province of the board of directors and shareholders of the company. The USW's unlawful conduct is particularly troubling given Essar's commitment to protect employees by assuming the existing contract, and their commitment to invest over $500 million dollars in the Ohio Valley.
“The company does not believe that the successorship provisions of the collective bargaining agreement apply to the proposed Essar transaction,” continued Bouchard, “and specifically the provisions do not apply to Essar's proposed purchase of shares through a tender offer. The USW's actions constitute labor-law violations that stand in the way of maximizing shareholder value. The company looks forward to a prompt resolution of this matter.”
Esmark Inc. is a vertically integrated steel producer and distributor, combining steel production capabilities through both blast furnace and electric arc furnace technologies with the just-in-time delivery of value-added steel products to a broad customer base concentrated in the Ohio Valley and Midwest regions.
