LTV Seeks to Have Labor Pact Overturned

LTV Corp. asked a Bankruptcy Court to overturn its existing labor contract as a way to jump-start talks with the steelworkers’ union over corporate restructuring plans.

The Cleveland-based company, which filed for Chapter 11 bankruptcy protection in December, said it will be forced to liquidate if the court rejects the proposal.

The motion asks that LTV be allowed to impose its own plan for health benefits while negotiations with the union continue. LTV said it has been unable to reach an agreement with the union on health-care costs, but it remained open to additional talks.

A spokesman for the United Steelworkers of America called LTV’s announcement “deeply disappointing,” particularly in light of significant steps the White House has taken recently to help the beleaguered industry.

LTV, which employs 15,200 people, is closing a mill and cutting 900 jobs in Cleveland. Its shares fell nearly 6 cents to close at 12 cents in over-the-counter trading.