Esmark Allegations a Pathetic Sideshow to Bouchards’ Failed Scheme

Contact: Tony Montana (USW) 412-562-2592

PITTSBURGH – The United Steelworkers (USW) today dismissed claims by Esmark that the union violated federal labor law in regard to discussions the union has had with Essar Steel Holdings, Ltd., an Indian steel company, and OAO Severstal, Inc., currently in a bidding war with each other over Esmark.

“Esmark’s contention that the union has invoked its contractual successorship protection to interfere with the proposed transaction between Esmark and Essar is ludicrous,” the union said. “Craig Bouchard’s allegations are a pathetic attempt to drag his loyal employees down with him as his business plan fails, even while the rest of the domestic steel industry enjoys a historic surge. It is absurd to hear the Bouchards talk about the Steelworkers illegally standing in the way of maximizing shareholder value when they have driven the company into the ground in the hottest steel market in the history of the world.”

The USW said that Esmark has refused to provide information that the union considers necessary to enforce the contractual obligations that protect its members in the event of a proposed sale and has frustrated the USW’s discussions with both Essar and Severstal.

The union reiterated that Esmark has violated the legal and contractual protections by entering into the agreement with Essar and closing on related financing without first providing the Steelworkers with appropriate notice and an opportunity to bring forward an alternative proposal.

“Without the hard work and sacrifices of USW members through many years, there would not even be a company to sell. The outsiders who run Esmark have failed these employees by every meaningful and measurable standard, while lining their own pockets and flying in private jets at the expense of both USW members and shareholders,” the USW said. “Now, less than two years after USW members helped Esmark gain control of Wheeling Pitt by invoking their successorship rights, Esmark is seeking to deprive them of those very same rights.”

The USW represents 850,000 workers in the United States and Canada employed in the metals, rubber, chemicals, paper, oil refining and other industries as well as the service and public sectors, including over 3,000 hourly production and maintenance employees at Wheeling Pitt facilities in Ohio, Pennsylvania and West Virginia.

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