Libbey Membership Update #8

Libbey Bankruptcy – August 17, 2020

Shortly after midnight on August 17, Libbey filed with the Bankruptcy Court in Delaware its motion under Sections 1113 and 1114 of the Bankruptcy Code to reject our collective bargaining agreements, freeze our pension plans and eliminate retiree healthcare. Below is a summary of what the company will attempt to impose, which is based upon the Company’s 4th proposal to the unions, which it presented on August 7:

  • An extension of all contracts until 2024.
  • The permanent closure of most of the Shreveport facility, with only the warehouse remaining and a transfer of the product we make in Shreveport to be made in China and Mexico with some equipment being moved to Toledo and most equipment going to Mexico.
  • A ten percent (10%) reduction in all wage rates in Toledo effective October 1st of this year.  A ten percent (10%) reduction in all remaining wages rates in the Shreveport warehouse effective January 1st of next year (a two-month lag).
  • A so-called “snapback” of wage increases conditioned upon the company reaching what it calls “free cash flow” triggers that the company admits likely would not provide any wage increase until the first quarter of 2024.
  • Cost increases to the health benefits of active employees effective January 1, 2021, with management maintaining a right without any further bargaining to change plan terms in 2022 and afterwards to match the benefits paid to non-represented employees anytime.
  • A permanent freeze of the current pension plan that would prevent the accrual of any additional service credit.
  • The permanent elimination of current and future retiree healthcare, effective January 1, 2021.
  • Elimination of all tool allowances.
  • Elimination of all multi-assignment allowances.
  • Elimination of all overtime premiums except as required by law that are hours worked in excess of 40 hours in a week.
  • Elimination of all double time premiums and all holiday premiums.
  • Increase the use of temporary employees even when union employees are laid off.
  • Reduce vacation amounts and vacation pay.
  • Elimination of December 26th – 29th as holidays.
  • Eliminate all skill adjustment premiums.

Libbey management continues to tell us that hourly workers and retirees must accept these sacrifices, and that if we don't, the federal court will to impose them.  We have assigned knowledgeable and experienced staff including Attorneys and Technicians, and we have engaged outside bankruptcy legal firms and financial advisors to assist in the process and we will continue to demand equity of sacrifice and a process to allow the company to exit bankruptcy, but if management continues to insist upon these draconian cuts to our contracts they will be met with legal actions that will exhibit our commitment to fair and equitable contracts.

Stay strong and be safe. We’ll keep you updated as we proceed.

In Solidarity – USW/IAM - Libbey Bargaining Committee