USW Welcomes Sale of Severstal Operations to the Renco Group

For more information contact:  Tony Montana (USW) – 412-562-2592

PITTSBURGH – The United Steelworkers (USW) today welcomed the announced stock purchase of Severstal’s USW-represented assets by the Renco Group, including the former Wheeling-Pittsburgh Steel facilities in the Ohio Valley, including Wheeling Corrugating in Wheeling, W. Va. and the Allenport facility in Allenport, Pa.; the former WCI Steel facility in Warren, Ohio; and the former Bethlehem Steel facility in Sparrows Point, Md., along with a 50 percent ownership of Mountain State Carbon in Follansbee, W. Va. and Ohio Coatings in Ohio.

The USW and Renco have reached tentative agreement on a contract covering all the USW-represented hourly production and maintenance workers, subject to membership ratification.

USW International President Leo W. Gerard praised union members and retirees at all of the facilities for standing together throughout the sales process, which began during the global economic crisis that led to a dramatic drop in steel demand.

“Our members have withstood two years of uncertainty brought about by circumstances beyond their control,” Gerard said. “Finally, their patience and solidarity have been rewarded, and the ownership issues have finally been resolved.”

USW District 1 Director David McCall, who chairs the union’s negotiating committee, said that he looks forward to working with the new management during the transition and into the future.

“Our members are ready to focus again on making steel safely and efficiently, as they have in all of these communities for generations,” McCall said. “We must now do everything we can to ensure the profitability of these plants and the sustainability of RG Steel as a long-term employer.”

The USW represents 1.2 million active and retired workers in North America in a wide variety of industries in both the public and private sectors, including about 6,000 employees at the plants affected by the announced sale.

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