Leader for Century Aluminum retirees raises new concerns in letter

Karen Gorrell, a leader and representative for Century Aluminum retirees, expressed new concerns about a continuing lack of health-care benefits in a letter she sent to Sens. Jay Rockefeller and Joe Manchin, both D-W.Va., Gov. Earl Ray Tomblin and Century President Michael A. Bless.

Gorrell, whose husband is a Century Aluminum retiree, released her letter on Tuesday. She focused on the May 11 announcement by West Virginia's Public Service Commission that Century and Appalachian Power had not reached an agreement about lower electricity fees.

The PSC will hold hearings about the agreement in late July, but is unlikely to make any decision about the Century/Appalachian Power agreement until September.

Susan Small, communications director for the PSC, said on Tuesday, "There is not anything I can say at this point."

In her letter, Gorrell wrote, "According to the quarterly conference call of Century Aluminum, [President] Michael Bless indicated it will take another four months [after PSC approves the agreement] to prepare the plant for the restart if all goes well."

When retirees negotiated with Century about retirement benefits earlier this year, Century told them they hoped to reopen the Ravenswood plant by the end of August.

Bless stressed that lower electricity rates are key to reopening the Ravenswood plant and generating savings "to fund a trust for the retirement group."

When Century closed its Jackson County aluminum plant on Feb. 15, 2009, it laid off 651 workers. When the company reopens the plant, 450 jobs are likely to be restored almost immediately. Another 200 jobs could be added later.

Last July, Century's retirees lost all company health benefits they believed they had been promised under union contracts negotiated by the United Steelworkers.

The retired Century workers and their spouses reached a compromise agreement with Century on March 15.

"We were beyond frustrated and disappointed at that time," Gorrell wrote, "that Century would not agree to start contributions immediately to begin health care coverage for those of us that were uninsured.

"We suggested adding the uninsured retirees to the other pool of early retirees that are still receiving health-care benefits from Century and that request was also denied.

"The retirees agreed because we felt we had no other options," Gorrell wrote. "We felt if we could get coverage by August, that would have to be okay."

Rockefeller said on Wednesday, "I have a long history with this plant, and I know how important it is to Century's workers, its retirees, Jackson County residents and the entire state. "It's frustrating that our retirees are still hurting and that we don't have more jobs available in this community right now, but there are a number of factors currently being evaluated by the PSC. I have and will always remain committed to making sure Century Aluminum workers and retirees are treated fairly and with respect." In May, Randy Moore, a USW staff representative, said he believed there were no major disagreements between Century and Appalachian Power. Gorrell said several retired workers and their spouses, including herself, are currently not seeking the medical attention they need until they have insurance. "I feel the retirees and the state have bent over backwards for the good of all concerned, to come to an agreement with Century and move forward with the process of getting the plant running. "Everyone involved is well aware that we settled for a portion of the benefits we paid for over several decades. "We understand that some times things happen that are not expected and can cause delays," Gorrell wrote. "However, catastrophic illnesses do not wait for PSC approval." Gorrell urged political and company leaders to put "your heads together and come up with a plan to get our benefits started immediately." Gorrell believes Century is sincere in their efforts to restart the plant. In its most recent quarterly report, filed on May 12, Century stated that it had reached "an agreement in principle" with the Ravenswood retirees to make contributions to a Voluntary Employee Beneficiary Association Trust Fund (VEBA) to provide "certain health care benefits to these retirees and their eligible dependents in the event of a restart of our Ravenswood facility." Century said its obligations under the agreement with the retirees, including VEBA contributions, depend on "several future events that are necessary in order to restart the Ravenswood facility. "None of these events, including the finalization of this agreement, are certain to occur." Earlier this year, Century reported making more than $9 million in additional profits because of last year's reductions in retiree benefits at the Ravenswood plant. "We would need to verify the actual amount needed, but I am assuming that a $2 million dollar contribution would run the VEBA through 2012," Gorrell wrote. "Retirees are good people and we are trying to be as fair and respectable as we know how to be, but enough is enough and we desperately need health care benefits," she wrote. "Please do not delay this any further."