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Updated: 5:17 p.m. Thursday, Aug. 30, 2012 | Posted: 5:03 p.m. Thursday, Aug. 30, 2012
By Kelly Camarote and NEWS9
STEUBENVILLE, Ohio —
Steelworkers who are expecting to lose their insurance because of RG Steel's bankruptcy filing are down to the wire to find replacement insurance.
In response, union leaders are encouraging active and retiring steelworkers to be very selective about benefits during this uncertain time.
On Thursday, TLC Insurance Group held an informational session in Steubenville about benefits it offers. The company is one of several who are setting their sights on the Ohio Valley since news of the RG Steel and its subsequent bankruptcy.
Don Eynon, a sales manager with TLC, set up the session at the Best Western in Steubenville at the last minute since some steelworkers found out just this week they will lose their insurance.
"Normally when this has happened in the past they've had 60 or 90 days to get something in order or get a new plan but since this has happened so fast most of them lose their coverage on Sept. 1 if we get an application in before midnight September. First the application will have to be processed but they will be effective Sept. 1," Eynon said.
Along with information sessions from private companies, the union halls are scheduling their own informational meetings to keep members informed about their options.
Jerry Conners, USW Local 1223 president, said, "There are a lot of insurance companies that are coming around right now trying to entice our members to buy insurance. My best recommendation is get the packet, look at it and go shop and get the best value for what you can get."
Conners said this is something that's new for a lot of union members.
"That's a shock because it's something that we have not had to go out and shop for. It's something that a lot of our members are not familiar with -- the difference deductibles and what you actually get, what's available for you, how to get the best bang for your buck," he said. "There are a lot of people who retired previous to 2003 that will not be affected the only ones that will be affected are the ones who have retired since the 2003 contract going forward."
The information session with TLC at the Best Western continues from 9 a.m. to 4 p.m. Friday. Conners reminded members that it is one of many companies offering plans to union members at this time, and each individual and their family will have to decide what's best for them.
Also in conjunction with RG Steel's bankruptcy, many active and retired steelworkers are receiving notices regarding a deadline to file claims in the RG Steel bankruptcy case. An attorney for the USW said people don't need to file proofs of claim for anything arising under the labor agreements.
Even though the union and RG agreed to terminate the contract, the company did not inform the union of any intention to not pay what was owned before the termination. The attorney said if they do, the USW will file the claim for all steelworkers affected.
In addition, the United Steelworkers of America is responding to criticism from a Maryland publication that the union is to blame for the uncertain future of the former RG Steel facilities.
In the statement, the USW specifically names the Baltimore Brew, accusing the publication of misreporting and not getting the full story. The USW said in some situations, representatives are not allowed to release details about the future of the facilities because of confidentiality agreements with potential operators.
That's something that local presidents in the Valley have also echoed about the search for new operators.
Ernie Gambellin, USW Local 1190 president, said, "If they are potentially going to buy your source and that's going to be the company you're going to be working for and they're asking you not to mention their name publicly for whatever reason that they have, how could you hoping that they would be the person that could buy you? I can assure you that if any company comes in here interested in running our Wheeling facility that USW Union Local 1190 will listen to their every word."
NEWS9 contacted the Baltimore Brew for comment about the criticism to its reporting on the bankruptcy. The publication released a statement on its website saying "readers are welcome to review their statement and our reporting and draw their own conclusions."
Stay with NEWS9, WTOV9.com and WTOV9 Mobile for continuing steel news.
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