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Posted: 10:36 a.m. Tuesday, Nov. 20, 2012
By Kelly Camarote and NEWS9
Union members who used to work under RG Steel are speaking out as the liquidated company requests permission from U.S. Bankruptcy Court to give the remaining salaried employees more than $700,000 in incentives to stay with the company through the end of the year.
RG Steel's Key Employee Retention Plan would pay $767,000 to 21 salaried personnel if they stay through the end of 2012.
A bankruptcy court judge in Delaware is reviewing RG Steel's proposal on Tuesday, while attorneys for the union plan to speak out in that same courtroom on behalf of steelworkers.
When asked what he thought would come out of the hearing, USW Local 1223 President Jerry Conners said, "Truthfully, nothing."
Conners said that's the only way he can feel as he looks at unpaid insurance claims pile up on his desk. "And there's more out there," he said.
Former RG Steel workers in the Ohio Valley are still affected by the company's bankruptcy because the union – as an unsecured creditor -- doesn't expect to see any money returned for its losses.
"GE Capital, Cerberus and Renco were the three that will be receiving money back from the bankruptcy, and those were the only three out of the secured creditors who would receive any of the money from this whole debacle," Conners said.
With regard to RG Steel's Key Employee Retention Plan, Conners said those 21 salaried workers shouldn't receive any benefits that union workers aren't receiving.
"We've lost jobs. We've lost benefits. We've lost a way of life. And then to have … them say that (for) 21 key people, we'll give them a three-month bonus at the end of their service when our guys won't be able to collect any severance pay; to give them health care insurance through the end of the year when our guys actually have bills," Conners said. "These guys shouldn't be getting any benefits that our members aren't getting."
It was unclear how long the hearing in bankruptcy court is expected to last. Stay with NEWS9, WTOV9.com and WTOV9 Mobile for continuing coverage.
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