USW Sues Bankrupt Equistar Over Severance Benefits

Law360, New York (July 16, 2009, 2:03 PM EDT) -- The United Steelworkers union has hit Equistar Chemicals LP with an adversary proceeding claiming the petrochemical company, a subsidiary of bankrupt Lyondell Chemical Co., failed to pay severance benefits to laid-off employees at one of its Texas facilities.

The union, along with its Local 13-243 chapter, is seeking to force the company to arbitrate the dispute, according to a complaint filed Wednesday in the U.S. Bankruptcy Court for the Southern District of New York.

Equistar terminated the employees, who worked at the company's Beaumont, Texas, facility,...
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