CHARLESTON, W.Va. — The United Steelworkers union announced Friday that Century Aluminum has agreed to fund health care benefits for the retirees of its closed smelter in Ravenswood, Jackson County.
The settlement, dated Feb. 9, would end years of litigation if it is approved in court.
“This settlement is a testament to the solidarity and hard work of USW retirees who never gave up trying to win back benefits earned over a lifetime of hard work, “ stated United Steelworkers International Vice President Tom Conway.
“This would not have happened without the retirees who made their voices heard and the union that stood behind them during a long and difficult struggle.”
If the court approves, Century will pay $23 million into a trust fund that will provide reimbursement for some past retiree medical costs, and assistance with future retiree costs, according to an announcement released Friday by the steelworkers union.
An estimated 758 retirees, spouses or surviving spouses will benefit from the USW/Century Aluminum Retires Health and Welfare Trust, also known as a voluntary employees’ beneficiary association, or VEBA, the announcement stated.
Sen. Joe Manchin issued a statement praising the settlement.
“I applaud Century Aluminum and CEO Mike Bless for honoring the healthcare benefits that these retired steelworkers have earned and deserve. I am also so proud of the United Steelworkers union for fighting for the benefits that they have earned through a lifetime of hard work and for never giving up the fight,” Manchin stated.
“Karen Gorrell led these efforts from day one on behalf of these retirees. In 2009, the plant closed and in 2010, all the employees were told all of their health care benefits, that had been promised to them and negotiated in good faith, were gone by the stroke of a pen. These are some of the hardest-working people. They don’t ask for a whole lot, just an opportunity to take care of themselves and their family. This is great news for them and their families.”
Retirees from the plant began receiving medical insurance benefits in 1959 from Kaiser Aluminum. Those benefits continued through different owners until Century began to eliminate them in 2010.
Century idled the Ravenswood smelter in February 2009 amid the recession and falling worldwide aluminum prices. In January 2010, Century ended health-care coverage for Medicare-eligible retirees. The company dropped younger retirees in 2011.
The company said the cuts were needed to control costs at the plant in case it were to be reactivated.
The USW and representative retirees filed a lawsuit seeking benefit reinstatement immediately after Century moved to cut retiree benefits.
The smelting complex was declared permanently closed in 2015. The property has since been sold to a developer with plans to tear down the facility and redevelop the 1,800-acre site.
On Jan. 27, Century Aluminum completed the sale of its facility in Ravenswood to Applied Partners Inc. for about $15 million.
Applied Partners, which is incorporated in Delaware, plans to place one of its own subsidiaries on the site while also making lots available for other companies. The smelter would be torn down.
