Union makes contract concessions to aid bankrupt St. Joseph com

ST. JOSEPH, Mo. -- A union that had threatened a debilitating strike against bankrupt Wire Rope Corp. of America, a major employer, has made sweeping concessions on its contract, the company has announced.

The decision by the United Steelworkers of America will save Wire Rope about $3.9 million and make it more attractive to potential investors, the company said Friday.

The deal came five days before Wire Rope's lenders planned to pull out of a $40 million credit agreement. The lenders had required changes in the union contract in order to continue a financing agreement for the company, which filed for Chapter 11 bankruptcy in May.

Wire Rope employs about 500 people in St. Joseph. The company also has facilities in Chillicothe, Mo., Sedalia, Mo. and Kirksville, Mo.

The union, which represents about 290 production workers, threatened to go on strike in the next several days if the company imposed major changes on its four-year collective-bargaining contract, which was to expire next spring. The company was seeking a court order to have the contract thrown out.

Officials said the agreement helps reduce the possibility of the piecemeal liquidation of St. Joseph's largest locally owned manufacturer.

Emil Ramirez, staff representative for the steelworkers' union, said the agreement provides job security to St. Joseph employees.