Fight looms over future of Pittsburgh Brewing

Tuesday, October 03, 2006
By Len Boselovic, Pittsburgh Post-Gazette

The unanimous rejection of Pittsburgh Brewing's final contract offer
could set the stage for a battle over control of the bankrupt brewer's
future.

Whether it seeks court permission to throw out the current contract or
returns to bargaining with the IUE/Communications Workers of America,
the brewery is facing an Oct. 15 deadline to file a reorganization plan
-- its explanation of how it intends to operate profitably once it
leaves bankruptcy.

Unless that deadline is extended, creditors and outside investors could
file their own plan for taking over the Lawrenceville brewery. Thus
far, no outside investors have emerged, but IUE/CWA business agent
George Sharkey expressed hope that one would.

In the meantime, union members want Joseph Piccirilli, who led a group
that purchased Pittsburgh Brewing at a bankruptcy court auction in
1995, to outline how he intends to save the brewery before they agree
to new contract terms.

"We want to see Joe's plan," Mr. Sharkey said.

Mr. Piccirilli says a new labor agreement is essential to the company's
survival. The contract proposal IUE/CWA members rejected Sunday called
for a 5 percent wage cut and other concessions. It was presented by
Jack P. Cerone, a Chicago attorney who is a minority investor in the
brewery as well as a secured creditor.

A spokeswoman for Mr. Piccirilli said the company was considering its
options.

One option the company has is to seek court approval to throw out the
existing contract, a bankruptcy law provision many companies have used
to get back on their feet. Pittsburgh Brewing sought permission to
abrogate the contract Aug. 4, but backed off and resumed negotiations
only to have its proposal rejected.

Some union members want new leadership at the company.

"This place is not going to survive with Mr. Piccirilli at the helm,"
bottler William Zaborowski said following Sunday's union vote.

Mr. Sharkey said there was little reason to ratify the proposal. If
U.S. Bankruptcy Judge M. Bruce McCullough agrees to let the company
impose its own contract terms on workers, those terms can't be any
worse than those contained in the rejected contract, Mr. Sharkey said.

Judge McCullough also could order the two sides to resume negotiations,
but Mr. Sharkey isn't sure the company would agree to further talks.

"I don't think we'll go back to the bargaining table unless the judge
suggests we go back," he said.