CHARLESTON, W.Va. -- Workers who retired from Century Aluminum in Ravenswood recently lost many health benefits provided under Century's contract with the United Steelworkers of America, and the union has asked a federal judge to restore those benefits.
"At the end of October, Century informed the union they were going to eliminate retiree insurance benefits for people over 65 who were eligible for Medicare," said Joe Stuligross, a lawyer for the United Steelworkers in Pittsburgh.
"For those under 65, Century made significant alterations in their benefits, increasing their costs, primarily in premiums. Prior to this year, they paid no premiums," he said.
"This is a plant where pensions are relatively low. Workers made sacrifices over the years, both in wages and pensions. But employees had some comfort knowing their essential health insurance costs would be covered after they retired."
The USW is asking U.S. District Court Judge John Copenhaver for a preliminary injunction restoring those health benefits to retired workers.
Copenhaver heard oral arguments in the case on Feb. 19, and has not ruled yet.
Michael Dildine, a spokesman for Century Aluminum in Monterey, Calif., said the company's policy is not to comment on active legal matters.
George Roush, 79, lives with his 78-year-old wife in Gallipolis. Roush worked for the aluminum plant for 32 years before retiring in 1992.
(Kaiser Aluminum operated the plant between 1959 and 1989, when Century Aluminum, then called Ravenswood Aluminum, bought it.)
In a legal filing with the federal court, Roush detailed increased costs he will have to pay for hospital stays, doctor's visits and prescription drugs.
Under Century's prescription drug plan, the Roushes paid $8 for a three-month supply of each of 15 drugs they expect to take for the rest of their lives - costing them $480 a year.
After looking into buying a Medicare Part D prescription plan from AARP, Roush found that his wife, who takes 12 prescription drugs, would have to pay $8,074 for her drugs this year.
CHARLESTON, W.Va. -- Workers who retired from Century Aluminum in Ravenswood recently lost many health benefits provided under Century's contract with the United Steelworkers of America, and the union has asked a federal judge to restore those benefits.
"At the end of October, Century informed the union they were going to eliminate retiree insurance benefits for people over 65 who were eligible for Medicare," said Joe Stuligross, a lawyer for the United Steelworkers in Pittsburgh.
"For those under 65, Century made significant alterations in their benefits, increasing their costs, primarily in premiums. Prior to this year, they paid no premiums," he said.
"This is a plant where pensions are relatively low. Workers made sacrifices over the years, both in wages and pensions. But employees had some comfort knowing their essential health insurance costs would be covered after they retired."
The USW is asking U.S. District Court Judge John Copenhaver for a preliminary injunction restoring those health benefits to retired workers.
Copenhaver heard oral arguments in the case on Feb. 19, and has not ruled yet.
Michael Dildine, a spokesman for Century Aluminum in Monterey, Calif., said the company's policy is not to comment on active legal matters.
George Roush, 79, lives with his 78-year-old wife in Gallipolis. Roush worked for the aluminum plant for 32 years before retiring in 1992.
(Kaiser Aluminum operated the plant between 1959 and 1989, when Century Aluminum, then called Ravenswood Aluminum, bought it.)
In a legal filing with the federal court, Roush detailed increased costs he will have to pay for hospital stays, doctor's visits and prescription drugs.
Under Century's prescription drug plan, the Roushes paid $8 for a three-month supply of each of 15 drugs they expect to take for the rest of their lives - costing them $480 a year.
After looking into buying a Medicare Part D prescription plan from AARP, Roush found that his wife, who takes 12 prescription drugs, would have to pay $8,074 for her drugs this year.
"Our monthly income is approximately $2,600 from pension benefits and Social Security," Roush stated in his legal declaration. "We have very little in savings."
Leo Howerton, 74, lives with his 72-year-old wife in Evans. He worked for the aluminum plant for 31 years before retiring in 1991.
Howerton estimates drugs for himself and his wife, which would have cost $288 a year under the Century/USW labor agreement, would cost $10,197 under the AARP plan. Today, the Howertons make $2,354 in monthly income from pension benefits and Social Security.
"If Century Aluminum is permitted to reduce these benefits, my and my wife's standard of living will significantly decline," Howerton stated.
The company has argued that it has the right to terminate retiree benefits after any given labor contract expires.
But Stuligross said, "The company betrayed their promise when they eliminated those benefits.
"This was one of the very first plants in the country to provide health coverage for retired employees," he said.
"This goes all the way back to 1959, when Kaiser Aluminum ran the plant. The company paid these benefits for 50 years. Then, all of a sudden, they said they have no obligation.
"We believe the company provided these benefits out of a contractual commitment. They cannot back out of their obligation when a particular contact expires," Stuligross said.
He hopes Copenhaver grants an injunction to restore medical and pharmaceutical benefits to Century retirees while the rest of the case is argued.
Pittsburgh lawyer Bill Payne, who argued the union's case before Copenhaver, said, "In asking for a preliminary injunction, I said these people would suffer irreparable harm. The judge cut me off and said there is no question that there is irreparable harm in these circumstances."
Century Aluminum lawyers, Payne said, argued their company could go bankrupt unless it finds ways to save money.
Reach Paul J. Nyden at pjny...@wvgazette.com or 304-348-5164.
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