Libbey Inc., one of the world’s biggest manufacturers of glass tableware, asked the judge overseeing its bankruptcy to allow the company to reject some collective bargaining agreements and cut worker wages by 10 percent, according to a court filing yesterday, Bloomberg News reported. The company’s latest offer to two of its unions, the United Steelworkers and the International Association of Machinists & Aerospace Workers, also includes freezing its defined benefit pension plan for hourly workers. The proposed changes provide cost reductions that are essential to a successful reorganization, the company said yesterday. Libbey expects to emerge from bankruptcy with less than $200 million of funded debt, compared to more than $400 million when it filed for chapter 11 in June, according to the release. The COVID-19 pandemic intensified a burdensome debt load and strained its access to cash.
