Who to go to for advice while negotiating an important contract with a large steel company?
For the United Steelworkers, that would be the same law firm that helped negotiate the termination of benefits and pensions for 4,000 USW workers at Sparrows Point and other RG Steel mills.
The Brew has discovered that the USW hired Willkie Farr & Gallagher, chief counsel for RG Steel, to advise the union in its current contract talks with ArcelorMittal.
The surprise disclosure came in a filing at the US Bankruptcy Court in Wilmington.
Mr Matthew A Feldman, a partner at Willkie, noted in a Fourth Supplemental Affidavit that the law firm was recently retained by the USW to provide advice regarding certain corporate, tax and securities law issues implicated in the ongoing negotiations of the collective bargaining agreement with a steel manufacturer that is also a party in interest in these cases.
Mr Dave McCall heads the USW's ArcelorMittal negotiation team.
The party in question is ArcelorMittal, who has been involved in a property easement dispute arising from the sale of RG Steel's Warren mill.
Earlier this month, the Willkie firm represented RG Steel in its settlement agreement with the USW that terminated all SUB (supplemental unemployment benefits) on August 10th 2012 and all health benefits, pensions and life insurance for unionized RG workers on August 31st 2012.
The connecting tie between RG Steel and the ArcelorMittal negotiations is USW District 1 Director Mr David McCall.
As chief union negotiator in the RG bankruptcy case, Mr McCall was the sole signer of the settlement agreement that terminated the union's contract with RG Steel.
RG Steel is expected to retain only about 100 union workers until Sparrows Point is sold to liquidator Hilco Industries and Warren to property developer CJ Betters, which is expected to take place in mid to late September 2012.
Mr McCall is also chairman of the USW committee that is negotiating a new contract with America's biggest steel producer, ArcelorMittal.
The current contract ends on September 1st 2012 and ArcelorMittal is demanding a two tier wage scale similar to the auto industry, in which new hires will receive lower wages and no pension benefits.
According to bankruptcy court filings, in the RG Steel case, Feldman received USD 1,090 an hour and has billed RG Steel USD 240,236 in fees between May 31st 2012 and July 31st 2012.
Altogether, the Willkie Farr group has billed RG Steel USD 2.97 million for two months of lawyering.
Source - Baltimore Brew
(www.steelguru.com)
