Steelworkers Union Wins Right to Bid Arbitration: Esmark Report Is False

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

PITTSBURGH – Yesterday, the United Steelworkers (USW) and Esmark agreed to make no public comments regarding arbitrator Richard I. Block’s decision that upheld the USW’s contractual “right to bid” against Esmark’s willful violation of the parties’ collective bargaining agreement.

Today, at 4 p.m., with no notice to the USW, Esmark, in keeping with its practice of violating agreements that it makes with the union, released a completely inaccurate account of the company’s defeat at the hands of an impartial arbitrator.

The arbitrator made clear, in no uncertain terms, that the company violated its USW contract when Esmark entered into its Memorandum of Agreement with Essar Steel Holdings, Ltd.

Block ordered the Memorandum rescinded and made clear that it is of no force or effect. In his award, Block questioned, “It is fair to ask whether the April 30 memorandum put Essar into a ‘leg up’ position. The answer is it did.”

Finally, in his formal award, the arbitrator stated clearly and unambiguously, “The grievance is granted. As remedy, the April 30 memorandum is to be set aside.”

The USW looks forward to continuing to stop Esmark from violating its Agreement with the union and is confident that when OAO Severstal, Inc. owns the company, it will repudiate this disgraceful conduct and all of those associated with it.