Bankruptcy court approves new motion that effects laid off Warre - 21 News Now, More Local News for Youngstown, Ohio -

Bankruptcy court approves new motion that effects laid off Warren RG Steel workers

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WARREN, Ohio - A bankruptcy court has approved a motion that essentially throws out the union contract for the 1200 steelworkers laid off from Warren's RG steel.

That plant and other RG steel plants around the country are being sold.  The owner of the company with the high bid on the Warren operations does not plan to reopen the plant, but says for the next nine months, he'll try to sell the facility to someone who will make steel there.  There is no word yet on if that bid won the courts final approval.

The court on Thursday approved a new agreement between RG Steel and the Steelworkers union that  terminates the existing contract no later than August 31st, the same day that all active and retiree benefit programs will expire.

The order also terminates all Supplemental Unemployment Benefits, and Company Pension plan obligations and contributions retroactively to August 10th.

RG Steel agrees to support worker claims for Trade Adjustment Assistance, and agrees to refrain from using outside contractors should any steel operations resume.  21 News' calls to union officials for comment have not been returned. 

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