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Steel union says international partners killed deal to buy Sparrows Point mill
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The Sparrows Point steel mill as seen from Pasadena. Steel union officials said Wednesday that international buying partners and negotiation delays by the plant’s owners were responsible for its failed sale. – Kristine Buls/Examiner file Delays by the owner of Sparrows Point in negotiating union benefits spurred a disagreement between the prospective lead buyer of the plant and its international strategic partners — dooming the deal, union leaders said Wednesday. David McCall, chair of the United Steelworkers’ Negotiating Committee, said during a conference call Wednesday that at the time the deal failed, the union had reached an “understanding” with the buyer, E2 Acquisition Corp., on the union’s terms and was discussing a large, one-time payment by plant owner ArcelorMittal into a health care trust fund for current and retired workers. But those talks started too late, McCall and John Cirri, president of Local 9477 representing the plant’s workers, said in a letter to union members Monday. By that time, McCall said two E2 partners, Companhia Vale do Rio Doce of Brazil and Ukranian firm Industrial Union of Donbass Corp., objected to merging Sparrows Point with Wheeling-Pittsburgh Steel, owned by Illinois-based Esmark, E2’s leading partner. “I have been told by E2 that their partners, even though they understood that it was to be a merged company … would not commit to that,” McCall said. In their letter, McCall and Cirri said they believed the partners backed away “because they could not control the company.” Esmark President Craig Bouchard declined to comment specifically on the union’s claim, but said the company would make another bid for Sparrows Point with new partners. “Esmark picks its partners; the partners don’t pick us,” Bouchard said. “We are sitting down and preparing a new bid with American partners interested in building the best steel company on the East Coast.” In that bid, Bouchard said Esmark would be proactive in meeting the union’s health care concerns itself. “We will restructure the agreement to take care of the employee issues Mr. McCall refers to.” McCall said pairing Sparrows Point with Wheeling-Pittsburgh had benefits for both plants. “We think that [an Esmark bid] may not be the only way that it’s successful,” he said, “but certainly putting those facilities together does make a long-term stronger company.” Cirri said the revolving door of plant ownership and the failed deal has led to “frustration and anxiety” for Sparrows Point workers. “Just as you start to accept the changes that might be needed, along comes another owner,” Cirri said. “But overall I’m not worried. I’m very confident that whatever comes across, the people at the Point are up to it.” acahall@baltimoreexaminer.com |
