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Keep companies from escaping contractual obligations during bankruptcy precedings

Created by E.S. on December 16, 2012

In March 2011 RG Steel LLC entered into a contract with the United Steelworkers of America. In June of 2012 they filed chapter 11 bankruptcy. While in proceedings the company asked to be allowed to pay 20 million in bonuses to 10 "key managers" to help secure a buyer. In addition after the buyer was named these managers were to be paid their salaries and other monies to included money to buy health insurance. Meanwhile the 2000+ Union workers were laid off and unemployed. Their medical benefits were stopped September 1 of 2012. Unfortunately the insurance provider was issued an order to stop paying claims two weeks before the end date. As well as other monies promised in the contract that was voided. Stop companies from rewarding bad behavior. Make them abide by the contract.

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