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Names of RG Steel ‘key employees’ released in court filings

November 15, 2012
Staff, wire reports

Bankrupt RG Steel has released the names of the 21 ''key employees'' for whom the company has sought high compensation to retain them through the end of the year.

The workers, previously described as "non-insiders" were made public in a recent court filings that also included a deadline for filing objections to the plan at 4 p.m. today.

The list includes four workers from the Warren plant, but includes no other identifying information including their job duties.

The Warren plant employees are listed as Michael Brunner; Jason Klingensmith; Daniel O'Bruba; and Margaret Thompson. Other workers listed are from Wheeling, Sparrows Point and the RG Steel corporate office.

The proposal has drawn heavy objections from political representatives and labor unions, particularly on the point of it including funds to pay for health care, something the now-unemployed steelworkers, former RG employees, previously saw covered through their collective bargaining agreements.

Officials for the United Steelworkers, the labor union representing the displaced workers who had worked at RG's various mills, have called the proposal "an inappropriate, unfair and outrageous effort."

The company's request is separate from an earlier plan, which was approved by the court, authorizing up to $20 million in bonus payments to 10 of the company's executives.

The proposed plan is built on offering 21 people three month's salary each and $2,000 monthly stipends to cover the cost of purchasing health insurance - a perk previously covered for them by the company.

A hearing on the original motion is set for 2 p.m. Tuesday.

This group of "key" employees are essential to the business RG has to conduct through the end of the year if it is to see it realized to its full financial potential. RG Steel's attorneys contend the company needs the employees' expertise to wind down its estate.

Without the proposed plan, the workers would at best "be less motivated to undertake the substantial responsibilities that they have been asked to undertake in connection with the 'wind-down process,' and at worst, would leave the debtors' employment entirely," said RG Steel's filing.

The union called the move a "slap in the face" to "steelworkers and retirees still owed monies for unpaid vacation, severance, medical claims and other broken promises."

 
 

 

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