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Sat. 9:02am: RG Steel unveils retention plan

October 27, 2012
Tribune Chronicle | TribToday.com

YORKVILLE - Bankrupt RG Steel plans to spend at least $770,000 across 21 people identified in a proposed "key employee retention plan" if the federal bankruptcy court allows its implementation and use through year's end - what is being called a wind-down phase.

Attorneys for RG filed the motion requesting approval of the plan and its activation Thursday.

The court appointed reorganization officer helped design the particulars of the proposal and is asking the court for its approval, according to the filing.

The requested funds would be paid the individuals to allow their purchase of healthcare coverage previously paid for as a benefit of employment with RG Steel, and which has been discontinued as a direct result of its bankruptcy reorganization.

RG's newly filed motion will come before the federal bankruptcy court at a hearing scheduled for Tuesday, Nov. 20.

The action drew a response from the United Steelworkers issued Friday afternoon in the form of an "update" to its members via email describing the proposal as "inappropriate, unfair and outrageous".

"Specifically the company wants to pay a $2,000 monthly stipend for each individual to allow them to purchase health insurance, along with bonus payments of three months' salary if the individual stays through December 31," said the USW communication of RG's motion.

The names of the selected individuals were not publicly released through general access to the filing, though it identified the "essential functions" these employees perform as including sales, accounting, treasury, IT and other related responsibilities.

 
 
 

 

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