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Steelworkers sue over health benefits terminated during contract talks

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The United Steelworkers union has filed a lawsuit against Allegheny Ludlum L.L.C., a unit of Pittsburgh-based Allegheny Technologies Inc., for reportedly terminating insurance benefits for 95 union employees before their intended expiration date.

The lawsuit, filed Aug. 28 in Pittsburgh federal court, alleges Allegheny breached a contractual agreement by ignoring a Nov. 30 “lag date” provision in an insurance agreement, as well as refusing to submit the dispute to arbitration, according to a statement Friday by USW.

According to USW, insurance agreements covering steel industry employees commonly include lag dates extending insurance benefits beyond basic labor agreements' expiration dates.

The 95 New Bedford, Massachusetts and Pennsylvania workers cited in the lawsuit are part of more than 2,000 USW-represented workers in six states involved in a lockout that began Aug. 15, a USW spokesman said Monday.

According to an Aug. 14 statement by Allegheny Technologies, the company began formal negotiations with USW in May for contracts that expired June 30, and no extensions were in place.

Allegheny Technologies said in the statement that USW had not accepted the company's final offer issued Aug. 10 or allowed union employees to vote on it.

The firm's proposal includes $4,500 in lump-sum payments over the four-year agreement and continued incentive programs for ATI Flat Rolled Products employees, according to Allegheny Technologies' statement. The proposed agreement also included family health care “at about half of the cost that the average American worker pays,” the company said.

In a separate statement released Monday, USW said it will hold a rally and march Tuesday in Pittsburgh calling for fair contracts with Allegheny Technologies, Pittsburgh-based United States Steel Corp. and Luxemburg-based steel and mining company ArcelorMittal S.A.

Contracts with U.S. Steel and ArcelorMittal which cover about 30,000 USW-represented workers, are set to expire Sept. 1, according to the statement.

“Negotiations throughout the summer have been slowed by management's demands for unfair and unnecessary concessions from workers at all three companies,” USW said in the statement.

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