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Esmark's President Speaks Out On Union Fighting Esmark's Plan To Accept Buyout

POSTED: 11:28 pm EDT May 16, 2008
UPDATED: 12:01 am EDT May 18, 2008

Saturday afternoon, the President of Esmark, Jim Bouchard told News9 that while this news is still fresh, the company is not commenting about anything right now. They may react to the news come early next week.

The United Steel Workers union is fighting Esmark's plan to accept a $670 million buyout from India's Essar Steel.

Friday night, the USW sent a letter to Esmark demanding the company scrap its agreements because the union is claiming it violates the union’s contract with Esmark.

The steel union has remained quiet since the proposed merger between Esmark and Essar Steel about a month ago, but now it is taking action.

Until Sept. 1, the union had the option to reject the deal that could change control of the company.

The USW said that Esmark did not give fair notice and the opportunity to offer an alternative proposal before Essar's cash buyout offer.

If the proposed buyout fails, Esmark has agreed to pay Essar a $20 million fee.


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