The USW sent a letter to Esmark on Friday demanding the company scrap its agreements with Essar, claiming the deal violates the union’s contract with Esmark. The contract, which expires September 1, gives the union the right to reject any deal that changes control of the company. The USW contends Esmark didn’t give it adequate notice and an opportunity to offer an alternative proposal before accepting Essar’s cash buyout offer.

Esmark also has agreed to pay Essar a $205 million fee if Essar’s proposed buyout offer fails. An Esmark spokesman did not immediately return a telephone message on Friday.

‘Frankly offensive’
Last year, the union sided with Esmark in the company’s takeover of twice-bankrupt Wheeling-Pittsburgh Corp, which has steel plants in West Virginia, Pennsylvania and Ohio. The merged company employs a total of 3,700.
“It is quite frankly offensive that after the support Esmark received from the steelworkers to get control of the company in the first place, that they would simply ignore the agreement they made with us,” USW President Leo Gerard said. “This will not be allowed,” he averred. Esmark Chief Executive Officer James Bouchard has said the company needs a strategic partner because of spiralling raw materials and transportation costs, difficulty securing long-term credit and investment challenges.