Update #13

To: The bargaining unit of Local Union 3059

We met in Pittsburgh on Wednesday, January 27 with PTC and Black Diamond. We were joined by International Vice President Tom Conway and two members of the grievance committee from USW Local Union 9305-05, which represents workers at PTC’s Darlington, Pennsylvania plant.

PTC presented a new proposal dealing with a variety of non-economic issues that went over and above the economic term agreement that PTC had already made. PTC explained its proposal, we asked numerous questions, and we ended the meeting saying that we would review the proposal. 

In the PBGC case seeking to terminate our pension plan, the USW filed a motion to intervene in the matter. By intervening, the USW would have a full right to participate in the litigation and present our views. The District Court in Pittsburgh will decide the motion to intervene at a later time.

This is going to be an uphill fight but understand that your local union officials along with USW officials are committed to working this out. Make no mistake about it, we will have our work cut out for us and we need your support to stay tough and together. If you have any questions please talk to one of the local union grievance committee or officers or visit us at usw3059.blogspot.com. 

Update #12

Update on PTC Alliance Bankruptcy Sale Hearing.

On January 14, 2010, the Bankruptcy Court in Delaware announced that it was granting the objection that CIT Group had filed to PTC’s plan to sell its business to Black Diamond. CIT is one of PTC’s pre-bankruptcy lenders and has liens on some of PTC’s assets. PTC complained that proposed sale to Black Diamond would cause CIT to receive less than what they are owed as a result of its liens. The Bankruptcy Court agreed, and by granting CIT’s objection, the Bankruptcy Court denied the sale motion.

It is our understanding that Black Diamond still wishes to own PTC, though nothing has been filed with the Bankruptcy Court to revise the sale motion. If PTC files a revised sale motion, it is possible that there may be some additional time to allow other potential purchasers to make a bid. Regardless of what happens, we expect that we will need to deal with Black Diamond. And, if PTC files a revised sale motion, the Union’s objections to the sale will still be able to be heard if we are unable to negotiate a mutually agreeable contract with PTC and Black Diamond.

We know that the uncertainty of the recent months has been difficult for all of us. Your continued support of your union and this Grievance Committee, particularly as we return to the bargaining table, remains the key to our success.

Update #11

We understand that there is a lot of misinformation out there and wanted to take time and let everyone know where things are at and how they got there. The Bankruptcy Court in Delaware continues to consider PTC’s efforts to sell its business to Black Diamond. PTC conducted an auction on December 16 and 17. Black Diamond was the only party that made an offer for all of PTC’s U.S. assets. There was an auction for the sale of PTC’s stock in its German affiliate, and Black Diamond outbid a German company for that stock.

The sale hearing began on December 17. The USW objected to the sale, arguing that the sale to Black Diamond should not approved until the USW and Black Diamond have negotiated a new labor agreement for the Alliance and Darlington plants. Prior to the start of the auction, the USW reached an agreement with PTC and Black Diamond that postponed any consideration of the union’s objection until additional time has been allowed for bargaining.

PTC and Black Diamond pointed out that they do not intend to close the sale until either there is a new agreement mutually negotiated or PTC obtains bankruptcy court approval under Section 1113 to reject the labor agreements. In the event of a Section 1113 contract rejection motion, the Union will be in court to vigorously fight the motion. The USW is awaiting word from PTC about resuming negotiations. Further, PTC and Black Diamond agreed that in the event that Black Diamond wanted to close the sale without having first negotiated an agreement or obtaining Section 1113 relief, the USW would be given 5 days notice and would have the opportunity to present our case to the bankruptcy court.

The sale hearing has continued since January 1. Other parties, including one of PTC’s lenders, CIT, have objected to the sale. In addition, the failed bidder for the German stock continues to object. Because the bankruptcy judge has been unable to offer consecutive days for the hearing, or even full days, the hearing has been held on several short days. It is possible that the hearing could conclude the week of January 18.

We have met with the company three times and each time they wanted to discuss the number of job classifications and look at any redundancies and/or out dated jobs that did not exist. You will have a voice and vote in this process.