34572 Winter 2006X.qxp 2/9/2006 5:38 PM Page 1assets.usw.org/News/USWatWork_PDFs/34572.pdfuntil a final decision on the logo,slogan and magazine was unanimously accepted. Unity and

34572_Winter_2006X.qxp 2/9/2006 5:38 PM Page 1

2 w i n t e r 2 0 0 6 • U S W @ W o r k

USW@Work (ISSN 0883-3141) is published five times a year by the United Steelworkers AFL-CIO•CLC Five Gateway Center, Pittsburgh, PA 15222.Subscriptions to non-members: $12 for one year; $20 for two years. Periodicals postage paid at Pittsburgh, PA and additional mailing offices. POSTMASTER: Send address changes to: USW@Work, USW Membership Department, 1440 South Byrne Road, Toledo, OH 43614

Copyright 2006 by United Steelworkers, AFL-CIO•CLC. All rights reserved. No part of this publication may be reproduced without the written consent ofthe United Steelworkers.

Direct Inquiries and articles for USW@Work to:

United SteelworkersCommunications Department

Five Gateway CenterPittsburgh, PA 15222phone 412-562-2400

fax 412-562-2445on-line: www.steelworkers-usw.org

Communications Staff: Marco Trbovich, Assistant to the President/Communications

Jim McKay, EditorAaron Hudson and Kenny Carlisle, Designers Lynne Baker, Jim Coleman, John Duray, Maurice Henderson,Gary Hubbard, Emily Jefferson, Marcia McGee, ColleenMoore, Joanne Powers, Wayne Ranick, Frank Romano

Contributors: Gerald Dickey, Jim Frederick, Holly Hart, Tony Montana

Leo W. GerardInternational President

James D. EnglishSecretary-Treasurer

Leon LynchVice President

Thomas M. ConwayVice President

Ken NeumannNat’l. Dir. for Canada

Richard LaCosseJames E. Pannell

Ron HooverJames H. DunnLewis Peacock

James K. Phillips, Jr.

David R. McCallGerald P. Johnston

Harry E. LesterJon GeenenSteve Hunt

Gary B. CookWilliam J. PientaMichel Arsenault

Wayne FraserJim Robinson

William R. GibbonsErnest R. Thompson

Robert SmithLloyd Walters

Connie EntrekinDonald L. Langham

John DeFazioKenneth O. Test

David FosterTerry BondsRoger HeiserGary Beevers

InternationalExecutive Board

ONTHECOVER INSIDEUSW@WORK

Official publication of the United Steelworkers

Volume 01/No.1 Winter 2006

Paper Bargaining Solidarity U SW members forge action plan for renewed solidarity inpaper bargaining.

06

Solidarity at GerdauSteelworkers from Gerdau Ameristeel locations in NorthAmerica confront the company's renegade Tampa management.

09

Pension Security Under AttackLegislation passed by Congress under the guise of shoringup private pension protections will dismantle definedbenefit pensions.

18

Bush Backs China in Pipe TradePresident Bush ignores U.S. trade laws and rules againstAmerican pipe producers and USW workers.

22

Labor is prior to, andindependent of,

capital. Capital is onlythe fruit of labor, and

could never have existed if labor had

not first existed. Laboris the superior of

capital, and deservesmuch the higher consideration.

“

”Abraham Lincoln

in his First Annual Message toCongress, December 3, 1861

Features:Speaking OutCAPITOL LETTERSNews BytesWorker EconomicsUnion Security Notice

0416301235

On the cover: Paper mill Technician Nick Thompson is measuring a core at therewinder. Above: James Jackson. Both work for SCA Tissue North America inBarton, Alabama. Photos by Lynne Baker.

34572_Winter_2006.qxd 2/8/2006 6:42 AM Page 2

U S W @ W o r k • w i n t e r 2 0 0 6 3

oncluding a six month study ofmember- and non-member viewsof the newly-merged United

Steelworkers, the InternationalExecutive Board at its January meetingadopted a new logo for our union, ful-filling a commitment made as part of themerger agreement reached between theformer PACE and USWA last April.

The final decision on a new logo andslogan was arrived at following anextensive branding study conducted by aprofessional public relations and market-ing firm, Washington, D.C.-based Greer,Margolis, Mitchell, Byrnes (GMMB).

GMMB had provided similarservices to other unions seek-ing to re-brand. (A brandshould express, bothgraphically and literally,what an organizationstands for, and in doingso should strengthen thebond of the organizationwith its members.)

In depth researchThe study involved extensive inter-

views with leaders, union staff andmembers, a comprehensive review ofthe union's communications, and a widerange of research, including a poll ofmembers in both the U.S. and Canadaconducted by an independent researchfirm, as well as six focus group inter-views of the union's members and fivemore of workers who were not membersof a union.

The focus group interviews wereconducted in the Akron, Ohio, Houston,Tex., and Toronto, Ont., areas fromwhich the broadest cross section ofmembers could be drawn from thediverse industries in which our unionwas represented by both the formerPACE and USWA.

On the basis of this research, GMMBrecommended six slogans to theInternational Executive Board, all ofwhich had been viewed more favorably

by the membership than the current slo-gan, "Everybody's Union." In addition,GMMB recommended the new name onthe cover of this magazine,USW@Work, after the name testedfavorably among members.

Extensive E-Board involvement,unanimous support

GMMB and the union'sCommunications Department shared theresults of the extensive research onbranding, logo design and magazinename with the International ExecutiveBoard in three consecutive Board meet-

ings in November, December andJanuary.

In addition, two presentations on theprogress of the study were conducted forthe staff of the Canadian National Officeby the International's CommunicationsDirector.

At each of these meetings, recom-mendations from Board members weretaken into consideration, which led tomodifications in logo designs and a con-tinuing winnowing of desired slogansuntil a final decision on the logo, sloganand magazine was unanimously accepted.

Unity and Strength for WorkersThe Board expressed unanimous sup-

port for the slogan "Unity and Strengthfor Workers," which it felt reflected thevalue of the union to our members, aview strongly supported by member andnon-member participants in the focus

groups conducted by the consultingfirm. The first letters of the key wordsin the slogan spell out "USW."

In addition, the Board unanimouslypassed a resolution approving the logopictured on this page; the letters "USW"with the letter "S" portraying abstracthands joining together. The words"United Steelworkers" will appearimmediately above the letters; the slo-gan will appear below it.

The Board resolution explicitly statesthat identification of local union affili-ates and designations of industry andother descriptive subgroups will be per-

mitted under, but not on or above,the new logo.

To ensure consistency inthe brand, the Board resolu-tion also established navyblue as the official primarycolor, to be used exclusivelythroughout the union, and

further designated gold as thesecondary color to be used in

conjunction with navy blue.By March 1, new letterhead and

other published materials will be devel-oped incorporating the logo, slogan andofficial colors into them, whereverappropriate. A campaign will be devel-oped for ensuring the use of these mate-rials in each district and throughout ourunion's locals.

Union apparel and other materialsonline from the Steelworkers' store willalso be redesigned to reflect the changesto the union's brand.

"We have invested significantly in theopinions and guidance of our membersand leadership in reaching these deci-sions," said International President LeoW. Gerard. "Now it's up to all of us tomake sure that we turn these decisionsinto the consistent identity of theSteelworkers at every level of ourunion."

C


Perfect example of unityOn behalf of myself and your union

brothers at Local 13000-9, CII Carbons,Chalmette, LA., I would like to thank theInternational Executive Board, the RapidResponse Network, all of the locals andmembers, as well as all of the employeesof the International Union.

The hurricane relief funds were dis-tributed at a time when most of us losteverything we own. It is a great comfort toknow that our union brothers have extend-ed their heartfelt sympathy. This is the per-fect example of unity, the principle onwhich this great union was founded.

Thank you again for your caring andsupport.

I am proud to be your union brother.

Keith M. DiazLocal 13000-9Chalmette, LA.

Struggling with FEMAHurricane Katrina caused complete

devastation to St. Bernard and surroundingparishes where all of my members live.Most have returned to work at Murphy Oilwhere they are living in company-provid-ed trailers. Many have come back withouttheir families since they have no otherplace to live.

You can imagine what turmoil this hascaused for our families and children. Ourhope is that all will be reunited in the nearfuture.

The Steelworkers' hurricane relief fundcontribution to our local has given every-one the comfort of knowing that our unioncares. While we struggle to deal withFEMA, other agencies and insurance com-panies, it is a relief that the UnitedSteelworkers has provided assistance inour time of need. The money receivedwas totally unexpected but is needed andmuch appreciated by all of the members ofLocal 8363.

Joseph Thibodeaux, PresidentLocal 8363Chalmette, Louisiana

USW made a differenceThe 1,000 members of Local 13-447

would like to thank you for your supportthrough the Katrina Relief Fund.

Our members are scattered throughoutthe Greater New Orleans and surroundingareas and were all touched in one way oranother by the hurricane. More than 300of our members experienced significantdamage from water and wind with somehouses either completely gone or totallycovered by flood waters.

It has been wonderful to see the out-reach from our union brethren in thiseffort to help their fellow members.

While all members may have beenaffected not all had the same degree ofloss. We have set up an evaluation com-mittee to disburse the Katrina Relief Fundthat will consider not only the damagedone but need as well. We do this to insurethat the money donated by our brothersand sisters will go to the individuals withthe most dire circumstances.

As a new member of the UnitedSteelworkers Union it has been gratifyingto see that the vote we cast to merge withthe USW has truly been a blessing. WhileI don't doubt that our PACE Internationaland locals would have responded in thesame fashion during this disaster, there isstrength in numbers and this effort hasproven that.

In closing I would like to send my sin-cere gratitude to the USW International,the Executive Board, InternationalOfficers, Regional and Sub-regional offi-cers, staff and all of our members whohelped us in this unprecedented crisis. Youtruly made a difference in people's lives.Thank you.

Brent Petit, presidentLocal 13-447New Orleans

Global economy worksagainst us

In my opinion, the new global econo-my is being created by the World Trade

Organization, Wall Street, corporateAmerica and the Republican Party for thesake of making the rich richer and thepoor poorer.

We are losing our health insurance,pensions and other benefits while the bigboys get bonuses and outrageous salaries.Republicans won't even raise the mini-mum wage of $5.15 per hour. Try payingyour energy bills on $5.15 per hour.

The energy bill was created by VicePresident Dick Cheney and other energytycoons. Believe me, they weren't think-ing of us! One more term of Republicansrunning our country, future generationswill be living like it was in the 20s and30s.

Think about it. What has the Bush teamdone for the good of our country? He hasgot us further in the hole than all 42 presi-dents before him. Nothing but lies andmismanagement. Wake up America.

Donald Jankwietz185 Washington StreetManistee, MI 49660

Vote for changeI am 81 years old and I have never seen

our country in such a mess.Very little has been done to control the

effect global warming has caused theworld and George Bush does not have asolid program in place.

Our country has problems, concernsand disasters to deal with and we have nofederal financial support because ofmoney that has been spent helping othercountries. This careless spending willaffect taxpayers today and our greatgrandchildren.

Voters determine who is in office. If thebest interests of the United States has notbeen taken care of "we the people" canmake some needed changes in Congressand the White House.

Irene StrombergKileen, Texas

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USW active and retired members and their families are invited to “speak out” on these pages. Letters should be short and to the point. We reserve the

right to edit for length. Mail to USW@Work, Five Gateway Center, Pittsburgh PA15222 or e-mail to [email protected].

Speaking OutSpeaking Out


bortion has gotten most of theheadlines with George W. Bush'sSupreme Court picks, but less

noticed in the mainstream media hasbeen the president's persistent nomina-tion of candidates who gravely threatenworkers' interests.

Judge Samuel Alito was the latestexample of the pro-corporate bias in allthree Bush nominations to the SupremeCourt, including the earlier confirmationof Justice John Roberts and the failedbid of Bush aide Harriet Miers, who wasbrought down by an ugly barrage of con-servative criticism in the president's ownparty.

Hot button social issues such as abor-tion are actually a minority of the casesdecided by the Supreme Court, yet theyget most of the media coverage. It's theless explored but equally important eco-nomic issues decided by federal judgesthat impact whether workers or con-sumers get their day in court or corpora-tions prevail.

Alito's nomination was hailed by busi-ness groups, but a review of his lower-court cases by the AFL-CIO led to ascathing censure for his "disturbing ten-dency to take an extremely narrow andrestrictive view" of laws that protectworkers' rights. Majority opinions hewrote favored business by a three-to-onemargin over workers and unions.

He voted against enforcement ofworkplace safety standards in the chemi-cals industry (Aldern Leeds v. OSHA)and against holding high-level corporate

officers responsible for unpaidwages and benefits once their

companies filed for bankrupt-

cy protection (Belcufine v. Aloe). Heexcused companies for giving WARNAct notices when plants are ordered shut-down by the government (HERE v.Elsinore Shore Associates) and preventedan age discrimination trial despite evi-dence that a boss called a worker "tooold for the job." (Keller v. ORIX CreditAlliance)

"It is clear that his judicial philosophyis at odds with the interests of America'sworking families,'' said AFL-CIOPresident John Sweeney.

Civil rights and environmental groupsalso warned against Alito's confirmation.He was denounced by the NAACP, theMexican American Legal Defense andEducational Fund and the BlackLeadership Forum.

Alito's anti-worker record ranges fromdecisions that denied overtime pay tonewspaper employees (Reich v. GatewayPress) to undermining the right of gov-ernment employees to unpaid time offfor serious illnesses under the FamilyMedical and Leave Act (Chittister v.Department of Community andEconomic Development).

Business leaders also hailed Bush'sselection of Justice Roberts to theSupreme Court, where many cases canbe decided by a one-vote margin. Beforehe became a federal appellate judge,Roberts represented business interestsincluding Toyota MotorCorp. and WellPointHealth Network,Inc.

As a lawyer representing Toyota,Roberts won a unanimous 2002 SupremeCourt decision putting new curbs on law-suits by workers with repetitive-motioninjuries. As a result, workers suing underthe federal Americans With DisabilitiesAct must show not just an inability toperform their job but that they also haveproblems performing daily tasks such asbrushing their teeth.

Like Justice Roberts, Miers camefrom a corporate background. Althoughshe had no prior judicial background, herexperience as a litigator and head of alarge Texas law firm raised questionsover whether she would instinctivelysupport Big Business.

Miers defended Texas car dealersagainst price fixing, challenged claimsthat Microsoft had sold defective soft-ware and took on consumers who sued

mortgage companies for violatingdebt collection laws. She alsoserved on the corporate boardsof a securities fund and amortgage company.

A

U S W @ W o r k • w i n t e r 2 0 0 6 5


When USW Local 13-656 member Margaret Bell tells thestory of her local’s 2003 negotiations with Georgia-Pacific, she brings to mind the difficulties paper locals

have had the past 20 years in dealing with an industry with its ownbargaining agenda.

GP wanted more flexibility, elimination of the Sunday premiumpay, removal of time-and-a-half pay for Saturday work, reductionof overtime and increases in cost sharing for health care. Bellestimates the concessions cost her $10,000 in pay.

“I could tell from the local management six months prior tonegotiations that they had a bargaining strategy,” Bell said.“They brought the corporate negotiator into the plant and hevisited with workers. They started a lot earlier than we did andthey were a lot more prepared.”Changing picture

Paper workers who belong to the USW are taking controlover the timing, tempo and tone of their upcoming negotiationswith the paper industry.

Over 750 delegates to the National Paper Bargaining conferenceheld Jan. 22-25 in Las Vegas unanimously reaffirmed their solidarityand commitment to each other by adopting policies that will guidethe union’s future bargaining efforts in an industry that employsover 150,000 USW members under 900 separate labor agreements.

In one of its first actions, the conference voted to simplifystrike vote procedures to require a simple majority instead of theprevious two-thirds majority. This was done to address the

Renewed SolidarUnanimous Support for New Strategy in Paper Bargaining

bargaining tactics of some employers.Delegates also enacted a “Vision for the Future” statement that

includes flexible bargaining principles and two mandatory goalsfrom the council’s 2004 initial conference. Those mandatory goalsare no contract longer than three years unless it serves the union’sinterest and agenda and no contract that contains a waiver of theright to bargain over benefits.

“We can’t fight a unified industry contract by contract,” saidRichard “Dick” LaCosse, USW international vice president. “We haveto speak with one voice and we have to have a common agenda.”

“We’re giving birth to a vision that will be practical andsensible,” said USW President Leo W. Gerard. “The papercompanies must save the industry by being smart, not by theexploitation of workers.”

The vision developed as a result of a series of meetings heldlast fall with local union leaders from the paper industry. Theytalked about the issues and challenges they faced in bargainingand what could help them. They agreed that if they were tosucceed in restoring balance to the bargaining process, theywould have to have a common agenda and vision of their own.

“Decades ago, corporations decided to have a commonagenda and take away from us things our parents and grandpar-ents fought for,” said USW Local 4-9 member Rod Hiltz. “Nowwe’re going to use a common agenda to take back those thingsfor our children.”New Bargaining agenda

The bargaining agenda rests on three clear objectives:● Bringing contract expiration dates closer together so

locals bargain together instead of apart;● Continuing to refuse to not give up the right to bargain

over health care and other benefits;● Expanding the contract provisions for job security in this

time of rampant mergers and acquisitions in the paperindustry.

International Vice President Dick LaCosseaddresses delegates to the National PaperBargaining conference

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6 w i n t e r 2 0 0 6 • U S W @ W o r k


arity:As a general rule, contract terms should not exceed three years in

length. Any term longer than that must further the union’s interestsand bargaining agenda and be approved by the international president.

Having common expiration dates makes it harder for the papercompanies to pit one local against each other. “If dates are the same orclose, we could get more solidarity,” said Bell. She said it also makes itharder for companies to build a strategy against the union onceconcessions are obtained from one location.

The conference agreed that any contract terms that waive alocal’s right to negotiate over benefits will not be approved forratification by the international president. Delegates also agreed thatit will not be acceptable for companies to substitute an inferiorhealth care plan that does not have the waiver.

With these objectives the union will be firm, but will be flexiblewhen needed as opportunities arise to improve the union’s position,said LaCosse.Building Economic Security

Having a successorship clause in a contract guarantees thatworkers’ wages, benefits and working conditions will remainintact if their company is sold. This was a big issue for Local 2-87during its July 2005 negotiations with Neenah Paper, said memberToni Denman. She said the company tried to offer the workers athree percent wage increase if they did not agree to a successor-ship clause. This persuasion failed because the local educated itsmembers about successorship through constant meetings andpostings on the union bulletin board.

“The people in our mill wanted to have the security that ifsomebody bought us, our local would be recognized and our labormovement would be honored,” said Denman.

Delegates agreed that contracts should contain a neutralityclause so that employers will remain neutral when their employeesat other nonunion facilities want to organize. They also said thiswould be essential if a local engages in a partnership or otheremployee involvement program.

Any bargaining strategy needs to emphasize lengthof service and fairness over favoritism. “They

(companies) like to pick and choose thepeople they want for certain things,” saidDenman. “They don’t care aboutseniority.”

U S W @ W o r k • w i n t e r 2 0 0 6 7


Safer working conditionsMaking a living should not cost a life. Work-place safety

and health programs should focus on the root causes ofincidents, like the union’s Triangle of Prevention (TOP)program. Partnership and employee involvement programsshould have union involvement.

Fernie Mirelez said his employer, Temple- Inland, has putthe union on notice that it wants an “employee-driven,behavior-based safety program.”

“You know, once they (the company) put the corporate labelon it, they have little room for change. If they’re truly interestedin employee involvement, they’d be receptive to a program likeTOP that deals with root causes and not behaviors.”

Mirelez said his company also wants partnerships in otherareas. “If we’re going to be partners, we have to be partnersall the way,” he said. “It makes no sense to be partners in onearena and be fighting in another area.”Educate, educate, educate

The next step is for paper locals to educate their member-ship about the new vision and agenda for paper bargaining.Then locals can begin to strategize how they can makeprogress on these goals. Members will receive extensivetraining and be on contract action teams.

“We can’t blame our members if we don’t educate them,”said Bell. “Educate, educate, educate—that is the key.”

The delegates themselves got ample education and trainingat the conference. The USW’s top bargainers, organizers andcommunications professionals conducted workshops instrategic bargaining, contract mobilization and strategiccommunications.

Members see hope in this new vision and direction fornational paper bargaining. “They believe it’s very doable andthat it’s going to get us out of a cycle of lousy contracts andcontinual concessions,” said Delie.

“For 20 years we’ve taught our members to boband weave,” said LaCosse. “From this day forwardwe’re going to teach them how to punch. Any-thing is possible if we’re engaged.”

Strike vote changes hailedIn a significant change that will greatly strengthen our

union’s bargaining power, the conference unanimously agreedto change the strike vote from requiring a two-thirds majorityto a 50 percent plus one majority.

“Companies play on that 16 percent,” said Fernie Mirelez, aLocal 819 member. “They give you enough so that you do notstrike over it.”

“We were the victims of that several years ago,” Delie said.“We couldn’t get a strike vote and we were backed into acontract. Strike authority is a tool more than a reality. Some-times you need that tool to get the best possible agreement.”

The vote on changing this policy was unanimous, and wasgreeted with a long, standing ovation by the delegates.

The conference also agreed that lump sum payments andother signing bonuses, as well as two-tier wage agreements,should be avoided. “They (lump sums) don’t add to yourwage rate and they don’t compound with future wages,” saidLocal 2-213 member Dennis Delie. “You get it, you spend itand it’s gone. It’s a false wage increase.”

Having quality, affordable health care is a major priority.“Outside of health care becoming unaffordable, it’s becomingmore restricted,” said Delie. “I’ve had a number of people cometo me who have a serious condition and they deal with special-ists who understand their situation. But because of a change inthe health care plan, they could no longer see that doctor.”

While the delegates are not opposed to a 401k if it isoffered in addition to a defined benefit pension plan, they sawthe necessity of having a pension that is secure and backed bythe federal government.

“With a 401k, the stock market could tumble and yourretirement money would be gone,” said Delie. “It’s too riskyand that’s even if people handle it properly.”

The conference also addressed vacations, holidays, familyleave, paid funeral and jury duty leaves, disability and sicknessand accident, and life insurance.

“We’ve got to get the membership to understand thebenefits they have,” said Local 9-508 member Kim Smith.“The way we use those benefits makes an impact on ourability to increase benefits.”

For example, if a large percentage of workers sells back theirvacation time, it makes it harder to negotiate additional time off.

The paper companies must save theindustry by being smart, not by the

exploitation of workers.“ “

Rod Hiltz’s local became involved with strategic bargaining prior tothe first National Paper Bargaining conference in 2004. His Local 4-9in Maine was battling Sappi over concessions.

“With strategic bargaining we’ve been able to hold the line,” saidHiltz. “It’s helped us be more firm. I feel the process we’re engaging inwill educate our members to achieve the discipline necessary to besuccessful at bargaining.”

Jeff Welhouse of Local 2-9 said his local incorporated the goalsfrom the first National Paper Bargaining conference into its bargain-ing docket. He said his company, Stora Enso, agreed to the goals ofhaving a three-year contract and negotiating over health care.

He said the strategic bargaining process has activated his member-ship and council. There is a network within the council to communi-cate as well as an international communication network.

“It drives the company crazy because they hate us talking backand forth like that,” he said.

Activism increases with strategic bargaining

8 w i n t e r 2 0 0 6 • U S W @ W o r k


teelworker leaders from eightGerdau Ameristeel locations inNorth America gathered in

Minnesota to draw up plans to confrontone of the most anti-union managementsthat the USW has come up against indecades.

Gerdau is a Brazilian family that hasbeen in the steel business for 100 years,recently expanding globally by buyingup mini-mills, including former NorthStar Steel and others, in the UnitedStates, Canada and Spain.

While the company has a reputationin Brazil for a paternalistic approachtoward its workers, the management ofits recently acquired Tampa-based U.S.operations is the direct opposite. It has a30-year history of worker exploitation,going back to its union-busting daysduring the 1970s at Florida Steel.

The burgeoning pro-corporate polit-ical culture in the U.S. encourages theradical Tampa management, which hasno respect for workers' rights, to take onthe union. The company has drawn a

line in the sand and in negotiations ismaking an outright assault on unionwages, benefits and protections. Thelocal leaders at Gerdau facilities in theU.S. and Canada are standing up to thethreat and taking action — mobilizingthe membership.

The company fired its first salvolast May when it locked out members ofLocal 8586 in Beaumont, Texas. It wasa blatant attempt to force agreement onterms of a concessionary contract pro-posal. The workers stood firm, refusingany givebacks. Six months went by.Hurricane Rita hit Beaumont while theywere locked out. Our members inBeaumont proved to be tough Texans.Nothing was going to defeat them.

U S W @ W o r k • w i n t e r 2 0 0 6 9

S

Mike Ruffley, president Local 9473 in Perth Amboy, N.J.

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Going into the seventh month of thelockout, the company backed off andadmitted its mistake. It announced plansto end the lockout but illegally imposedits concessionary contract proposalsprior to any bargaining impasse. TheUSW has filed charges with theNational Labor Relations Board.

It's not over yet"Our people have not been called

back by seniority," said Local 8586 pres-ident Pete Savoy. "The company hasunlawfully and unilaterally implementedtheir proposal."

Workers in Beaumont do not have a

contract. They are not working underthe terms of the previous agreement.And there is no interim agreement.

"The company has engaged inunfair labor practices by unilaterallyimplementing their proposal and by ille-gally threatening our members," Savoysaid.

Workers at other Gerdau locationsare keeping close watch on what is hap-pening there.

"Our members in Whitby, Ontario,see the workers in Beaumont as heroes,"said Local 6571 president DenisKavanagh. "If they were defeated,eventually, Gerdau would get us all. We

will not let them beat us.We will win by stickingtogether. Solidarity willwin this for us."

Unanimous supportA strong commitment

to solidarity was rein-forced by all who attendedthe Jan. 9 and 10 meet-ings, highlighted by

reports from members at the two otherplants where contracts have alsoexpired.

"The compa-

ny's economic proposal includes cuts inovertime pay, two tier wages, cuts inretiree health care, no pension increase,attacks our job classifications and newwage rates that would freeze hourlypay," said Bill Clevenger, president ofLocal 8581 in Wilton, Iowa.

"It's concessionary across theboard," he said. "Our members won'tstand for it. We will do whatever wehave to do to protect ourselves."

"They've thrown obscene conces-sionary proposals at us," said MikeWodaszewski, president of Local 7263in St. Paul. "It's a disgrace. They wantto take away retiree health care andreduce our standard of living. It took us40 years to get where we are and there'sno reason for us to move backwards."

Brazilian metalworkerspledge cooperation

"Our metalworkers confederation isshowing solidarity with steelworkers inthe U.S. and Canada, because togetherwe gain strength. And with globaliza-tion, unions have to show globalstrength," said Nair Goulart, VicePresident of Forca Sindical. "That's the

way to achieve victory."There are two major

metalworkers unions in

10 w i n t e r 2 0 0 6 • U S W @ W o r k

Pete Savoy, presidentLocal 8586 in Beaumont

Union Leaders from the Gerdau Ameristeel North American and Brazilian plants take abreak from their meeting to welcome the street blimp to the streets of Minnesota

“Gerdau had a seemless transition whenthey took over the plant. We have a

skilled work force that made them $40million in their first year here. It took us40 years to get where we are and there’sno reason for us to move backwards.”

Mike Wodaszewski, presidentLocal 7263 in St. Paul


Brazil. The other is headed by FernandoLopes, an old friend who was featuredin Steelabor magazine during a visit toPittsburgh in the summer of 2002.Together, they represent all 15,000Gerdau steelworkers in Brazil.

"On behalf of 800,000 Brazilianmetalworkers, we support the fight ofworkers in the U.S. and Canada becausethe only way we can guarantee ourworkers' rights are to be sure that allworkers' rights are protected around theworld," Lopes said. He is the secretary-general of CNM/CUT, the NationalMetalworkers' Confederation of Brazil.

Since Gerdau has recentlyannounced acquisition of mills in Spain,union representatives from that countrywere unable to attend the meeting, butthey are hungry for information. MannyArmenta, a USW Sub-district Directorin Arizona who speaks fluent Spanish,will soon pay a visit to Spain to briefthem on the company's assault on ourstandard of living.

All plants bringing pressureWinning contracts with an obstinate

management takes everyone workingtogether. That sort of cooperation in thisbattle has already begun. The Texaslockout failed because the workers stood

their ground. Nobody fal-tered. They remain united.

Billboards in Beaumont pay trib-ute to the members of Local8586.

A USW billboard is alsoup near the plant in Wilton,Iowa, alerting the commu-nity to what is happening.

A rolling billboard,called a street blimp, trav-eled the streets of St. Paul,Minn., where the contracthas also expired. On a quietSaturday morning at the turnof the year, it went past theplant manager's house. Thedriver noted that drapes in thefront window were open wide.Just to make sure the boss sawit, the driver turned and wentback slowly to give him a secondlook. No such luck. The drapeswere drawn closed

One look must have beenenough. After all, the mes-sage had traveled aroundthe plant, St. Paul andMinneapolis all week.With a picture of acrocodile's mouthwide open, the bill-board read, "GerdauDevoured NorthStar Steel. Now itis after our stan-dard of living.What a crock..."

U S W @ W o r k • w i n t e r 2 0 0 6 11

Bill Clevenger, president Local 8581 in Wilton, Iowa

Brian Graves, president Local 9447 in Calvert City, Ky.

Nair Goulart, Vice President of Forca Sindical, an umbrella organization of Brazilian labor unions


12 w i n t e r 2 0 0 6 • U S W @ W o r k

Unions Add 213,000 Membersespite a political climate hostile to workers' rights, labor unions added213,000 members in the United States last year, according to the Bureau ofLabor Statistics (BLS).

The increase brought the total number of wage and salary workers who wereunion members last year to nearly 15.7 million. Density stayed steady at 12.5 per-cent.

Full-time wage and salary workers who belonged to unions had median usualweekly earnings of $802 last year, compared with a median of $622 for unrepresent-ed workers.

Wage Growth Slowsourly wages for most workers are not keeping pace with inflation eventhough there has been strong growth in labor productivity.

Middle- and low-wage workers are being hit with a one-two punch ofslower wage growth and faster inflation, according to the Economic Policy Institute(EPI), an economic think tank that does research on issues of concern to workingpeople.

The result for most workers is stagnating or falling real wages, the term used todescribe wages that have been adjusted for inflation. By comparison, high-wageearners have seen growth over the last five years.

In addition, EPI said wage growth for middle- and low-income workers isslowed by the fewer number of workplaces covered under union contracts, the fallin the real value of the minimum wage, the growing imbalance in international tradeand the offshoring of white-collar jobs.Hourly wages fell 18 oflast 20 months

Data released in Januaryby the BLS showed that mostworkers' hourly and weeklywages fell behind inflation in2005. Real hourly wageswere down 0.5% over thecourse of the year, while realweekly wages declined 0.4%.

Hourly wages fell in 18 ofthe past 20 months. That'shardly the "healthy" and"robust" recovery that so-called "economic experts"often claim we're in.

Execs Get Taxes Paidank-and-file workers mustreach into their own wallets topay taxes. But not Robert

Nardelli, chief executive of HomeDepot, the hardware retailer, and agrowing number of other U.S. execu-tives.

Many corporations pick up a bigchunk of execs' federal and stateincome taxes, reimbursing them fortaxes due on luxury cars, travel oncorporate jets, and forgiveness of mil-lions in loans.

The little-known tax payments,called "tax gross ups" seem to begrowing in popularity among execswho are paid extra sums to cover per-sonal tax bills and taxes on stockgrants, signing bonuses and severancepackages.

Equilar Inc., a compensationresearch firm, says 52 percent of com-panies disclosed they paid gross-upsto one or more executives last year,according to a study done for TheWall Street Journal. 0.0%

-0.5%

0.5%

-1.9%

-1.3%

0.6%

-1.0%

-1.5%

-2.5%

Low-WageWorkers

Middle-WageWorkers

Real wage changes — 2004-05 High-Wage

Workers

-2.0%

SOURCE: Economic Policy Institute

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WorkerEconomicsWorkerEconomics


U S W @ W o r k • w i n t e r 2 0 0 6 13

Minimum Wage Buys Lessnflation is eating away at the buying power of the minimum wage.

In the more than eight years since Congress passed the lastincrease in the minimum wage, its buying power has eroded by 17

percent and is currently at its second lowest level since 1955.The federal minimum wage, contained in the Fair Labor Standards

Act, is $5.15 an hour. Many states also have minimum wage laws. Inthose cases where an employee is subject to both, the employee is enti-tled to the higher of the two minimum wages.

Federal inaction on raising the minimum wage has led 17 states andthe District of Columbia to increase their state minimum wages abovethe federal rate.

China's Unfair Trade Juggernauthina continued its meteoric rise as a global economic power in2005, as its trade deficit with the rest of the world surged to $102billion, more than triple the $32 billion gap recorded in 2004.

The trade figures intensify pressure for Beijing to loosen foreignexchange controls that critics contend keep China's currency, the yuan,undervalued, giving China an unfair advantage in world markets bymaking its goods relatively cheap.

"What this does is just reinforce the case that China is manipulatingits currency,'' said Ernest Preeg, a senior fellow at the ManufacturersAlliance, a Virginia-based trade group. "China is a whole cloud overtrade policy."

Bush Administration Stalls on Outsourcing Study's Release

he Bush Administration is refusing to pro-vide Democratic members of Congress withinformation they requested concerning a

controversial report done in 2004 on the outsourc-ing of U.S. jobs in the high-tech sector.

The Commerce Department cited provisions ofthe Freedom of Information Act (FOIA) in saying itdid not have to comply with the request made byU.S. Rep. Bart Gordon (D-Tenn.), the rankingminority member of the House Science Committee.

A 12-page version of the report was released inSeptember 2005, based on an FOIA request. Itsbrevity and lack of original research caused some toquestion whether it was a complete representationof work done by the government's TechnologyAdministration, which was directed by Congress toassess workforce globalization in knowledge-basedindustries.

Make Tax Time Pays the annual April 15 tax filing deadline approaches, it might payto check and see if you or any of your friends or family qualifyfor the Earned Income Tax Credit or the Child Tax Credit.

The Earned Income Tax Credit (EITC) reduces tax burdens and sup-plements wages for low and moderate income workers who qualify.Generally, working families with children that have annual incomesbelow about $31,000 to $37,000 (depending on marital status and num-ber of children) are eligible.

The EITC is a refundable tax credit, which means that if a worker'sincome tax liability is less than the amount of the credit for which he orshe qualifies, the worker receives the difference between the liability andthe credit as a refund.

An emergency tax relief act passed by Congress allows hurricane vic-tims whose income dropped in 2005 to use their 2004 amount when fig-uring the Earned Income and Child Tax credit refunds.

American Middle Class Endangeredhe middle class in America is in danger of disappearing becauseof deliberate strategies by corporations to outsource jobs abroadand chip away at the benefits of U.S. workers, AFL-CIO

President John Sweeney said."Wounded workers aren't the only casualties of the corporate job-

killing strategy,'' Sweeney told the National Press Club. "It is also a self-destructive strategy because it leaves businesses with consumers whodon't have enough money to spend or save. It leaves government withmore demand for public services and subsidies and fewer taxpayers topay for them,'' he said.

Sweeney said businesses should be concentrating on creative solu-tions to global competition and becoming more innovative rather thancutting benefits and laying off employees. He also called for universalhealth care and blasted the trend among corporations to eliminate pen-sion coverage.

Outsourcing Boosts Demand for MBAs; Salaries Increase

he outsourcing of jobs to places like India ishelping to drive up demand for businessschool graduates with MBA degrees.

The Labor Department estimates that the out-sourcing industry will need 2,000 senior executivesthis year and 9,500 by 2012, up from only 100 in2000.

Salaries and signing bonuses of new MBA grad-uates took a double-digit jump in 2005 to a recordaverage $106,000, up 13.5 percent from 2004,according to a survey by the Graduate ManagementAdmissions Council, a testing administrator.

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Rx for Walgreen’s Union-BustingRx for Walgreen’s Union-BustingWork speedups aren’t confined

to factories and assemblylines. Union pharmacists at the

Walgreen Co. drug store chain are beingpushed to process more prescriptionswith less help.

Many Walgreen pharmacists sellmore than 20 prescriptions an hour, apotentially dangerous level, according tothe National Pharmacists Association,which has formed an alliance with theUnited Steelworkers.

The alliance bore fruit in Januarywhen Steelworkers joined pharmacistsfor a day of protest at two ofWalgreen’s busiest stores in Chicago, Il.and Merrillville, Ind. over the chain’srefusal to bargain a new contract.

Whether you are a blue-collar workeror a white-collar worker, the USWrecognizes that there are issues offairness on the job that a union canaddress.

“Money is not the issue,’’ retiredsteelworker Roy Collins, past presidentof USW Local 1657 at Acme Steel, saidas he joined the protest. “It’s howpeople are being treated.”

Combatting stressThe vast majority of pharmacists

who responded to an informal Steel-workers survey said they are “alwaysor often” stressed and feel like they areon an assembly line. Most of theircustomers are also frustrated over thetime it takes to have a prescription filledbecause of burdensome workloads,they added.

The survey was cited in a letter fromAFL-CIO Secretary-Treasurer RichardTrumka to Walgreen CEO DavidBernauer that called on the drug storechain to reform its pharmacy and laborpractices to protect consumers.

“Working Americans rely onWalgreen to provide quality pharmaceu-tical services, and the retirementsavings of America’s working familiesare invested in companies likeWalgreen,’’ Trumka said.

The USW offered assistance to theindependent pharmacists’ union lastyear after a brief contract strike againstWalgreen stores in Illinois and parts ofIndiana. The previous four-yearagreement expired in 2005.

Wages were not in contention. Majorbargaining issues included thecompany’s decision to limit pharma-cists’ input into staffing decisions, theelimination of dues deductions frompaychecks and ending the requirementthat pharmacists join the union.

With growing diversity among our850,000 members, the USW has some15,000 pharmaceutical workers asmembers, including about 1,400pharmacists, most of whom work forMedco Health Solutions, a mail-orderbenefits pharmacy.

Bill Gibbons, director of former PACE Region 9, leadspharmacy workers and USW members at a rally andinformational picket line outside a Walgreen store inChicago.

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14 w i n t e r 2 0 0 6 • U S W @ W o r k


o build on our union's drive tosecure basic protections for stu-dent-athletes that the National

Collegiate Athletic Association (NCAA)does not currently require, the USW co-sponsored two fundraising events for theCollegiate Athletes Coalition (CAC).

The CAC is a non-profit advocacygroup comprised of college athletesfrom across the nation that is buildingsupport for its cause with the financialand organizational help of our union.

The events featured players from theNFL's Cleveland Browns and the SuperBowl champion Pittsburgh Steelers whosupport the CAC's efforts.

USW International President Leo W.Gerard, Secretary-Treasurer Jim English,Directors Dave McCall (District 1) andJohn Defazio (District 10), along withother USW staff, joined the CAC'sRamogi Huma and hundreds of enthusi-astic Browns and Steelers' fans at theevents.

Browns' cornerback DaylonMcCutcheon and Steelers' safety MikeLogan hosted the events in their respec-tive cities as part of the CAC's effort tosecure protections.

"The NCAA is one of the mostrecognizable, well financed and

powerful institutions in America becauseof the student-athletes who make itssports programs so successful," presi-dent Gerard explained to those attend-ing. "That's why it's completely uncon-scionable that it refuses to address thebasic health and safety needs for theseyoung people and their families. As longas these inequities persist we will con-tinue to stand with the CAC and fight tochange them."

Between the Cleveland Browns eventheld in Strongsville, OH and the eventin Pittsburgh, the CAC was able to raisenearly $250,000.

"These events give fans an opportuni-ty to meet some of their football heroes,but they do much more to create aware-ness and raise support for current andfuture generations of student athletes,"said Huma, CAC's co-founder and chair-man and a former UCLA football player."All of this could not have happenedwithout the continued support ofplayers from the ClevelandBrowns, thePittsburgh

Steelers and especially Pres. Gerard andthe USW."

Since 2001, the CAC has been work-ing to secure protections for student-ath-letes such as:

• Health care coverage for all sports-related workouts;• Safety guidelines to help preventworkout-related deaths;• Protecting academic scholarshipsfor injured players;• Increasing scholarship money toinclude basic necessities; and,• Allowing universities to offer 5-year scholarship promises in writing. "The CAC came to the USW because

of its long history of fighting for people,and they have done that and more onbehalf of student-athletes," Huma addedwith a smile. "I'm so thankful for that."

U S W @ W o r k • w i n t e r 2 0 0 6 15

TEAMWORKNFL Stars Join Our Union's Drive for Student AthletesTEAMWORKT

Ramogi Huma and Browns' cornerbackDaylon McCutcheon on stage at theCleveland fund raiser.Right: Steelers’ players Mike Logan andClark Haggans sign autographs for fans.

Photo by Eustacio Humphrey

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he U.S. Congress took a long holi-day rest and came back toWashington, ready to do its job -

or to continue doing a job on the rightsof working men and women - dependingon your view of how things work inD.C. these days.

Lately, most of the news has beenhard to swallow: 14 coal miners deadfrom lack of funding and enforcementwhile Mine Safety and HealthAdministration (MSHA) officials walkout of Senate hearings before they canbe questioned; Judge Alito rubber-stamped out of the Judiciary Committeeby party-line vote — ready to breezethrough the Senate onto the SupremeCourt because Democrats likely won'tmount a filibuster; Karl Rove, Bush'spolitical hit man, orchestrating anAdministration PR blitz of epic propor-tions to justify domestic spying andkeep people from focusing on yet moresmoking guns - convicted felon and for-mer lobbyist, Jack Abramoff, and thePresident in pictures the White Housewon't release and reports that the WhiteHouse knew Katrina was going to dev-astate New Orleans two days before thestorm hit. And that's just the regularnews - what's really happening?

Disgraceful Greed:The $2.4 million in bribes that drove

former U.S. Rep. Randy "Duke"Cunningham (R-Ca.) to resign fromCongress in disgrace included Frenchantique dressers made of burled walnut,hand-woven Persian carpets and silver-plated candelabras.

The eight-term Republican pleadedguilty to accepting bribes from defensecontractors and others in exchange forgovernment business and other favors,the first in a series of corruption scan-dals gripping the Republicans inCongress.

As part of his plea, Cunninghamagreed to forfeit $1.8 million in cash anda 7,682-square foot, seven-bath mansionnear San Diego in Rancho Santa Fe, oneof America's wealthiest communities.The home was sold in December for$2.6 million. Stay tuned.

HMO Bonanza:Before Congress ran out of town in

the dead of night for the Christmasrecess, they gave private insurers a bigpresent by restoring $26 billion in pay-ments to private HMO's for incentives toparticipate in Medicare in the DeficitReduction Act of 2005. Instead, the $26billion will be made up by those that canreally afford it - like student's payingmore for loans, Medicaid recipients pay-ing more and cuts in child supportenforcement. When the House comesback at the beginning of February, theyhave to try to ram this budget reconcilia-tion bill through one more time sincechanges were made in the Senate.

Hammering The Hammer:You remember Tom Delay?

Democrats and many Republicansheaved a sign of relief when "TheHammer" had to give up his post as aHouse Majority Leader. EvenRepublicans were sick of his bullyingtactics to get bills passed. After a furiouscompetition, House Republicans electeda self-proclaimed reform candidate, Rep.John Boehner of Ohio, as their newmajority leader, to replace Delay, who ischarged with campaign finance viola-tions in Texas. "No matter who theRepublicans elect, it's easy to showthey're supporting more of the same …part of a pay-to-play system that's madeWashington the mess that it is rightnow,'' said Bill Burton, a spokesman forthe House Democratic campaign organi-zation.

Ignorance is Bull:The big lobbying scandal has law-

makers frantically donating their JackAbramoff contributions to charitieswhile publicly pretending not to knowtheir lobbyist buddies. All are "totally

unaware" and "sincerely shocked" thatthey were getting contributions, lavishtrips and parties for any particular rea-son. Senator Rick Santorum - who hasreceived more money from lobbyiststhan any other congressional candidatein the 2006 election cycle (according tothe Center for Responsive Politics) - isthe man charged by the RepublicanParty with drafting the law to moretightly regulate lobbyists. So far his billpreserves the "K Street Project" - whereGOP-approved personnel were saltedinto the lobbying community - andmerely limits gifts. Democrats havejumped into the fray with their ownreform bill that will ban all gifts, end theK Street Project and ban midnight legis-lating.

Workers Beware:Workers really stand to lose if S. 852,

the Fairness in Asbestos InjuryResolution Act of 2005, passes. S. 852is scheduled for the Senate floor begin-ning the week of Feb. 6 and there isnothing "fair" in this bill for victims.There are numerous deficiencies in S.852 that will deny fair and timely com-pensation to tens of thousands of victimsof asbestos related disease. TheCongressional Budget Office has raisedserious doubts that the $140 billion fundwill be enough to pay expected claimsand some estimate the potential claimsto be as high as $300 billion. USWmembers need to be aware that manyemployers have already asked theirworkers to help get this bill passed asthey will be shielded from liability if itdoes. However, we owe it to those whohave been sickened by their work to vig-orously oppose S. 852.

Pension Bill in Limbo:And pensions? Well, stay tuned -

now that S. 1783 and HR 2830 havepassed the Senate and House, the squab-bling is just beginning on who will chairthe conference committee and who willbe part of the conference. According toHill sources, the pensions will likely beaddressed at the end of March or April.

16 w i n t e r 2 0 0 6 • U S W @ W o r k

CAPITOL LETTERSCAPITOL LETTERSThe inside scoop on what's going down in D.C.

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Union Blasts BP’s Final ReportUnion Blasts BP’s Final ReportIndependent Safety Review Panel Listens to Workers

lthough BP claims to accept responsibility forthe March 23 blast and fire at its Texas City,Texas, refinery, it continues to insist that the oper-

ators’ “failure to follow procedures” was a root causeof the explosion.

The company issued its final investigation report inDecember. Ross Pillari, president of BP Products NorthAmerica Inc., told the public that the report describes“the underlying causes and management system failures”which contributed to the incident that killed 15 workersand injured 170 more.

The USW says BP’s final report wrongly blames work-ers. Union members who were on the company’s investiga-tive team refused to sign the final report becausethey disagreed with how the findings were presented.

“They’re continuing to blame the operators and supervi-sors and that’s not the root cause; that’s not the bottomline,” said Kim Nibarger, the USW’s lead investigator on theTexas City explosion.

A key factor was the company’s continued use of obso-lete equipment. U.S. Chemical Safety and Hazard Investiga-tion Board (CSB) lead investigator Don Holmstrom told theindependent safety review panel on Nov. 10 that the equip-ment used was “half-century-old technology.”BP Footdragging

“If the company had taken the union’s advice to pipethe atmospheric vent to the flare system, there wouldhave been no fire and there would have been no deaths,”said USW District 13 Director Gary Beevers.

An incident last December at BP’s Whiting, Ind., re-finery confirms Beevers’ statement. While bringing aunit back on line from a shutdown, operators accidentallyoverfilled a distillation tower because a level indicator onthe tower gave them a false reading.

Instead of going to a vent, the liquid was directed to-ward a flare where it could be burned off. No explosionoccurred and no one was injured or killed.

Nibarger said there was a failure by the managementsystem to ensure that a pre-startup review and walkthrough with the crew took place prior to the March 23startup. He said that if this had happened, the operatorswould have identified many of the shortcomings with thestartup methods and that the procedure was incorrect.Some instrumentation issues also might have been identified.

Nibarger, who interviewed workers at the Texas City site,said they told him that when they raised safety concerns withmanagement, the problem would only get fixed if the costwas minimal.

A

How can you follow aprocedure that’s not correct?“

““System is broken”

The independent safety review panel is visiting BP’s fiveU.S. sites to talk to workers. It also has been holding publicmeetings at each location. The first meeting was held in TexasCity on Dec. 22. Workers and union leaders said safety at BPhad been compromised in exchange for production andprofits. They talked about worker fatigue, deferred mainte-nance, employee shortages, inconsistent guidelines, the needfor more training and management’s lack of respect for theiropinions and suggestions on replacing old equipment.

“The entire system is broke out there. We have no ideawhere we are going or how we’re going to get there thesedays,” said Lloyd Jewell, a USW local 13-1 member. “Safetyis for sale. The only thing we do consistently is remaininconsistent.”

The 11-member independent panel, which is chaired byformer Secretary of State James A. Baker III, has one laborappointee. The USW selected Glenn Erwin, who directs theunion’s Triangle of Prevention (TOP) program, to be on thepanel. Prior to joining the union’s staff in 1994, Erwin was aunit operator and instrument technician at the Amoco chemi-cal plant in Texas City, which is now a BP facility. NeitherErwin nor the USW will receive compensationfrom BP.

U S W @ W o r k • w i n t e r 2 0 0 6 17


18 w i n t e r 2 0 0 6 • U S W @ W o r k

egislation passed by Congress designedallegedly to shore up private pension protec-tions instead appears intended to shut down

the traditional defined benefit pension system.As this magazine went to press, our union and its

allies were working to change in conference committeesome of the more damaging provisions of pension rule bills

passed late in 2005 by the House of Representatives and the U.S. Senate.The legislation — the most extensive revamping of the federally-insured employer

defined benefit system since the 1974 passage of the Employee Retirement IncomeSecurity Act (ERISA) — was cloaked in Bush Administration rhetoric as a plan to

strengthen retirement security and make corporations keep promises made to workers andretirees.

But the bills' details actually revealed an effort by the Republican leadership and its corporate allies to undermine defined benefitplans, in which retirees get a monthly check based on their pay and years of employment. The new legislation would have the effectof shifting more of the burden of financing retirements off employers and onto their workers. That is expected to happen as dramat-ic increases in funding requirements simply push companies to drop their DB plans and replace them with 401(k) plans that putinvestment risk entirely on the individual.

"It's the ultimate wolf in sheep's clothing," said International President Leo W. Gerard. "It's a direct assault on the retirementsecurity of our members and every worker in this country." Shutdown pensions in danger

Current law, for example, provides no limits on collective bargaining for pensions or pension improvements. But both bills

L


would prohibit plans from improving benefits if they fall below80 percent of a newer stricter definition of full funding. TheHouse bill would freeze the accrual of pensions once a plangoes below 60 percent funding.

"You cease to earn any extra pension until your companycan dig itself out,'' USW General Counsel Paul Whitehead said."Imagine a freeze. It is really dramatic."

The House bill as originally proposed would have prohibitedthe granting of any new so-called shutdown pensions to work-ers with long service when their factories or plants close, evenif the employer is healthy and the plan fully funded. A last-minute change to the bill, however, would allow shutdown pro-

visions as long as the pension plan is funded at 80 percent ormore.

Currently, if a shutdown benefit has beenavailable under a pension plan for over five

years prior to the plan's termination, thePBGC will guarantee it, subject to limitations

and excluding any monthly "supplements." The Senate bill would key that five-year

phase-in to a plant's shutdown rather than howlong the benefit has been in a contract. For every

year after a facility is closed and shutdown bene-fits are granted, one-fifth of the benefit is covered

by the PBGC should the plan be terminated. So, if acompany shuts down totally and the pension plan is

terminated the next day, the shutdown pensions wouldbe zero guaranteed by the PBGC. If the plan is termi-

nated two years after a shutdown, two-fifths of the bene-fit would be guaranteed. In effect, the Senate bill requires

a benefit to be in place for five years before it gets fullPBGC coverage in a plan termination, even if the shutdown

pension had been in the plan for decades.USW legislative director Bill Klinefelter said the union is

working hard to fix provisions in the bills such as the shut-down pension issue during the conference committee proceed-ings. He said the legislation as currently written is anotherattack on the three-legged retirement system that included com-pany-paid pensions, Social Security, and personal savings.

"It will end pensions as we know it,'' adds pension expertTeresa Ghilarducci, an associate professor of economics atNotre Dame and a former advisor to the Pension BenefitGuaranty Corp. during the Clinton Administration.Defined Benefit plans undermined

The defined benefit system, which for decades representedthe gold standard in retirement benefits, covers about 44 mil-lion workers in single and multi-employer retirement programs,or about 20 percent of the private U.S. workforce, many ofthem industrial workers.

There is no quarrel with some of the legislative provisions.Both the Senate and House bills increase the flat-rate premiumspaid by corporations to the PBGC, the government agency thatinsures defined benefit plans. Both bills also increase publicdisclosure of a plan's financial health.

The PBGC, which is financed entirely by those premiumsand interest on investments, reported a deficit of $22.8 billionat the end of the fiscal 2005 on Sept. 30. The government insur-ance system, as many Steelworkers whose companies havebeen in bankruptcy know, does not fully guarantee benefitspromised in a contractual plan. Last year, though, the PBGC

assumed responsibility for the benefits of an additional 235,000workers and retirees, bringing the total to 1.3 million, and paidbenefits of about $3.7 billion.

Both bills would raise premiums paid by employers from$19 a year to $30 per worker. Higher premiums would help afinancially-strapped PBGC pummeled by a perfect storm ofeconomic conditions that included a fallen stock market, a cri-sis in the steel industry marked by bankruptcies and consolida-tions, and another disaster in the airline industry that followedthe Sept. 11 terrorist attacks.

But other details, professor Ghilarducci warns, could detercorporations from offering new defined benefit plans or fromfunding and keeping alive plans that are already in existence -pushing corporations and their workers to rely more on definedcontribution plans, such as 401(k)s.Worker choice short circuited

Under current law, when 401(k) accounts are offered,employees must often elect to participate. Both bills wouldencourage automatic enrollment of new hires and the Senatebill would extend that to current employees.

Much of the horse-trading in Washington over the final leg-islation is expected to revolve around how companies measureand pay for pensions, including whether employers with junk-rated bonds must pay more into their plans. Under an approachbeing pushed by the Bush Administration, the sicker a companyis financially, the heavier the burden it will have to carry. Theunion opposes this strongly.

Klinefelter and other observers predicted that non-unionizedemployers will drop defined benefit pension plans rather thancontinue to maintain them under the new rules. And as the poolof companies offering defined benefit plans continue to drop,he predicted there will be Republican and business-led effortsto get the government entirely out of the business of guarantee-ing pensions.

"We're trying to salvage as much as we can out of a reallyterrible piece of legislation,'' he said.

U S W @ W o r k • w i n t e r 2 0 0 6 19

U.S. Labor Secretary Elaine L. Chao says defined benefit pension plans “werethe favored retirement plans of the Ozzie and Harriet generation.” With the BushAdministration’s blessing, employers are moving away from providing thosetypes of guaranteed monthly benefits. But Chao won’t have to worry. She andher husband, U.S. Sen. Mitch McConnell (R-Ky.), are both eligible for traditionaldefined benefit plans, including automatic inflation adjustments.


hen Alcoa idled its aluminum smelting plant near Frederick,Md., because of high energy costs, maintenance man PhilWagner and many co-workers qualified for early shutdown pen-

sions negotiated by the United Steelworkers years before.Wagner was 51 with 32 years of service when the plant was moth-

balled in December, making him eligible to retire immediately with bene-fits from Eastalco, a joint venture of Pittsburgh-based Alcoa and aJapanese consortium led by Mitsui & Co. Ltd.

So-called shutdown pensions, meant to help veteran workers likeWagner who fall short of normal retirement age when a plant closes,would be endangered and possibly left unguaranteed by the PensionBenefit Guaranty Corp., the government insurer, under a pension reformbill (H.R.2830) passed by the U.S. House of Representatives last year.

Several hundred Eastalco workers were laid off at Christmas by Alcoa,which blamed the curtailment on its inability to negotiate competitivepower pricing from Allegheny Power, the utility serving the plant. Bysummer only a handful of 600 employees will remain as caretakers.

Although Wagner and other Eastalco employees were able to retire, heis well aware of the national trend away from traditional employer-paiddefined benefit pension plans to programs that shift responsibility forretirement planning onto employees. And he has seen bankruptcies andpension plan terminations leave workers elsewhere with reduced benefits.

"We're certainly concerned about our pensions because we see whathas happened at other places. Pensions have really come under attack,''Wagner said. "You work hard all of your life and you think you're look-ing at the end of the rainbow only to have the rug jerked out from under

you as many people have. It is just wrong."Pennsylvania retiree Richard Sterner quali-

fied for a shutdown pension in 2000 when theformer Bethlehem Steel foundry where he wasworking went belly up. Now 62, Sternerworked in heavy construction after the foundryclosed but was persuaded to retire from thatback-breaking work last year by his physician.

As had happened to many Steelworkers inhis situation, Sterner's pension was reducedwhen it was assumed by the PBGC in 2003.He lost life insurance and medical coverage atthe same time.

Still, the pension represents half of hisincome and keeps him from losing his home,an old stone house in the small community ofWind Gap, north of Bethlehem, Pa.

"You get your lumps and bumps in your lifebut you don't expect them to keep coming.Everybody told me don't worry, the pension isguaranteed, you're in good shape,'' Sternersaid. "But the only thing that's guaranteed isthe rich stay rich and the poor get poorer."

20 w i n t e r 2 0 0 6 • U S W @ W o r k

W

(AP Photos/Timothy Jacobsen)

Left: Ingots at EastalcoRight: Phil Wagner


egotiators for World TradeOrganization countries meeting inHong Kong played kick the can

on important manufacturing issues duringa highly contentious week of talks markedby movement on agriculture and demon-strations in the streets and the city's harbor.

No changes were made to WTO rulesthat protect U.S. workers on dumping andcountervailing duty petitions, items of par-ticular importance to the steel industry,even though most other WTO membercountries would like the U.S. to eliminateits anti-dumping laws.

There was no victory only delay. TheWTO ministers spent much of their timein Hong Kong on agriculture and agreedto work towards dismantling trade barriersin manufacturing and services as part of aplan to reach a broad and binding interna-tional global treaty by late 2006.

In agriculture, the agreement approvedby all the WTO's 149-member countriesand territories calls for rich countries toeliminate all export subsidies on cotton by2006 and gives the world's poorest nationsspecial trade privileges.

The real negotiations on dumping andcountervailing duty petitions will nowmove to WTO headquarters in Geneva,where the USW's opponents are expectedto be more aggressive than they were inHong Kong. The rules committee negotia-tions start in February and are set to runinto July.

The USW-backed Committee toSupport US Trade Laws (CSUSTL) was atthe WTO to press for the interests of laborunions, workers, companies and tradeassociations who want enhanced U.S.

trade laws to benefit domestic manufactur-ing, technology, agriculture, mining andenergy and service employers.

Also showing the flag in Hong Kongwas Stand Up For Steel, a labor-manage-ment coalition of the USW and the lead-ing integrated steel producers — MittalSteel, U.S. Steel Corp. and WCI Steel.SUFS works to preserve and strengthenthe U.S. trade laws and to improve healthcare benefits and pension security foractive Steelworkers and retirees.

In the weeks leading up to the talks,SUFS lobbied U.S. government negotia-tors not to give away current trade lawsthat protect workers. Advertisements post-ed in Capitol Hill publications and otherinside-the-beltway media noted that threemillion manufacturing jobs have been lostover five years largely due to dumping,currency manipulation and foreign subsi-dies.

"American manufacturers can win afair fight anywhere in the world,'' one ofthe ads stated. "It's up to our negotiators tosee that they get the chance."

Past globalization meetings served as abattleground for anti-globalization protestsand Hong Kong was no exception. Butthis time police prevented eruptions fromspoiling the high-level discussions.

More than 900 people were arrestedafter skirmishes on Dec. 17 when protes-tors broke through police cordons andtried to storm the venue where financeministers and officials were holding tradeliberalization talks. Police fired tear gas tofight off demonstrators, who then staged a14-hour standoff with police, shuttingdown sections of downtown Hong Kong.

owing to pressure from theWorld Trade Organization,the Republican-controlled

Congress repealed the "Byrdamendment," which allowed U.S.companies to collect revenues fromanti-dumping lawsuits filed againstforeign companies.

The repeal came when VicePresident Cheney broke a 50-50 tiein the Senate at year's end to pass abudget reconciliation bill that alsoimposed the first restraints in near-ly a decade in federal benefit pro-grams such as Medicaid, Medicareand student loans.

Under the Byrd amendment,more formally known as theContinued Dumping and SubsidyOffset Act of 2000, the U.S. gov-ernment distributed anti-dumpingand anti-subsidies duties to theU.S. companies that brought thecases.Manufacturing Drought

Since the program was enactedin 2001, U.S. companies receivedmore than $1.26 billion in payoutsmeant to cover expenses such asthe investment in manufacturingfacilities and technology acquisi-tion.

USW President Leo W. Gerardsaid the repeal will accelerate thepredatory practices of foreign com-petitors who are subsidized by theirgovernments to unfairly dumpproducts in America and hurtAmerican workers struggling tocompete in the global marketplace.

The WTO has declared the Byrdamendment a violation of interna-tional trade rules and authorized$114 million in import sanctionsagainst U.S. companies by Canada,the European Union, Japan andMexico. Our union was instru-mental in winning passage of theamendment and will continue towork for reinstating it.

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n a test case of the White House'scommitment to protect Americanjobs from unfair Chinese competi-

tion, President Bush ignored U.S. tradelaws and ruled for China againstAmerican pipe producers and theirUSW workers.Bush's decision to deny relief to steelpipe makers that had been recommend-ed by the government's ownInternational Trade Commission (ITC)was roundly condemned by the UnitedSteelworkers and its industry employersnow fighting for their economic lives.

"Our members are not going toaccept this presidential determination,"USW President Leo W. Gerard said."We'll be raising our voices in the 2006election to send the message thatAmerica's fair trade laws must beenforced. We can't afford the loss offamily-supportive jobs tounfair trade byChina."

Without the quotas sought by ourunion and the companies, industryexperts believe the volume of steel pipecoming in to North America from Chinawill only increase, leading to plant shut-downs and the loss of thousands of jobs.

"We're very upset with it. Every otherelected official believes we should betrying to save American jobs over theChinese. But the president doesn'tbelieve that," said Mickey Bolt, a labtechnician at Wheatland Tube inWheatland, Pa., and volunteer Chairmanof the Western Pa. Committee to SaveOur Manufacturing Industries. "Hebelieves we should place Chinese inter-ests over American jobs.''

Finished standard pipefrom China isflooding

into the U.S. at prices below the cost ofraw materials even though domestic pro-ducers are far more efficient. Domesticplants can produce 1,200 feet of pipe aminute compared with village-operatedfacilities in China that turn out pipe at amuch slower rate of 60 feet per minute.

Chinese-made imports of these prod-ucts shot up from 10,114 tons in all of2002 to 87,890 during the first sixmonths of 2004 and 185,019 tons in thefirst half of 2005. Full-year projectionsfor 2005 were 400,000 tons.

The petition to the ITCasking for quotarelief

22 w i n t e r 2 0 0 6 • U S W @ W o r k

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USW and SOAR members protest PresidentBush in Chicago after he denied import relieffor domestic pipe producers.

Right, USW members and pipe producersstood in freezing rain outside the WhiteHouse after a day of lobbying for quotas onChina pipe imports.

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was filed under a law enacted byCongress in 2000 allowing industries toask the president to slow or stop surgingChinese imports. The request from thepipe industry, made by seven companiesand the union under Section 421 of theTrade Act of 1974, was the fourth to bemade and the fourth to be rejected, allwith the same explanation from theWhite House. Other industries deniedSection 421 petitions include wire gar-

ment hangers, iron waterworks fittingsand wheelchair parts.

In each case, Bush said raising barri-ers to Chinese-made goods would harmconsumers by raising prices while offer-ing little relief to U.S. manufacturers. Hesaid other foreign producers would likelystep in to fill the demand.

"It's sad that an American presidentcannot enforce the trade laws written byCongress because this administration isso beholden to foreign countries, primar-ily China, to finance our budget deficitand our foreign policy," said RogerSchagrin, a Washington attorney who

represented the domestic industry andthe USW in the case.

The ITC found in October thatChinese producers were dumpingimports of circular welded non-alloysteel pipe on the U.S. market at unfairlycheap prices. ITC Chairman StephenKoplan recommended quotas, denied byBush at year's end.

Standard pipe covered by the ruling isused to carry water, steam and gases and istypically found in plumbing, heating andcooling systems, building fire sprinklers,fences, sign posts and other applications.

In addition to the USW, petitionerswere Allied Tube & Conduit Corp.;IPSCO Tubulars Inc.; MaruichiAmerican Corp.; Maverick Tube Corp.;Sharon Tube Co.; Western Tube &

Conduit Corp; and, Wheatland Tube Co.They operate plants in Arizona,Arkansas, California, Illinois, Iowa,Ohio, Pennsylvania and Tennessee.

With the denial of quotas on pipe, noAmerican industry or worker has yetreceived any relief under Section 421,passed by Congress in response to con-cerns about American jobs after China'saccession to the WTO.

"We followed the law. We followed itstep by step, used what Congress passedto get help. We even had the ITC agree

with us," said Steve Kramer, a pipeworker at Allied Tube in Harvey, Ill. andpresident of USW Local 9777.

Kramer said he was disappointed inthe president and some members ofCongress who did not support the initia-tive even though they had pipe plants intheir districts.

"We've got to put Congress on noticethis year. We support those who supportus and we're looking for them to help notonly the American worker but to helpthis country. We've got to be pro-American."

USW International Vice President TomConway urged pipe workers and the com-munities in which they live and work tocondemn the presidentfor not supporting

American industry and jobs."We followed the rules approved by

Congress for trade law enforcement,showing China pipe imports are unfairlysurging within the past three years, andthe U.S. government's own investigationagreed. Yet President Bush has chosen tosupport China over America's interests,''Conway said. "How many moreAmerican jobs will the Republican lead-ership sacrifice before it shows somebackbone?"

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WORLDWATCH

Ted White, a mill operatorwith Allied Tube in Harvey,IL., calls a White House hot-line on behalf of the steelpipe industry.


he 2005 trade figures released bythe Department of Commercepaint a revealing picture: a tsuna-

mi of red ink increasingly fueled by theskyrocketing trade deficit with China.Year after year thedeficitwith

China has been growing at an annualrate of 20% or more. The President andhis Administration have not been idleduring this time — far from it. Theiractions — and inactions — have actual-ly added fuel to the fire and led to anacceleration of offshoring, outsourcingand the decline of our nation's manu-facturing base.

Five years ago, the U.S. Congressgranted Permanent Normal TradeRelations (PNTR) status to thePeople's Republic of China, pavingthe way for China to become a mem-ber of the World Trade Organization(WTO). Central to the highly con-tentious debate was the question ofwhether deeper economic engage-ment with China would result infurther democratic reform inChina, expansion of human rightsand the spread of freedom, whilealso advancing the economic

interests of China and itspeople.Worker rightstrampled

Proponents ofPNTR argued that eco-

nomic engagementwould lead to politicalreform. There can be noargument that China's

track record, to date,has not lived up to

those promises.The Chinese

government

continues to trample on human rights,workers rights and religious freedom.Freedom of speech is curtailed, withcountless individuals having beenimprisoned for merely criticizing thestate. China is reported to have as manyas 30,000 Internet cops, surfing theInternet to find individuals who "threat-en" the regime by talking about democ-racy, freedom and other similar issues.

Corruption in China is rampant, andthe mechanisms which could expose andprevent corruption — transparency,accountability and sunshine created by afree and independent media — are sti-fled. Last year, according to Chinesegovernment statistics, more than 70,000incidents of public unrest occurredacross the country. Many of these "inci-dents" were responded to with deadlyforce by government officials. Laborunrest is on the rise with similarresponses by the government.Trade relations lopsided

PNTR proponents also made grandpromises about gains for the U.S. econo-my. But, the record of trade relationswith China continues to be severely lop-sided in China's favor, resulting in atrade deficit of more than $162 billion in2004, a figure expected to top $200 bil-lion for 2005. Projections of marketaccess for commodity after commodityhave failed to meet expectations asChina has failed to abide by its WTOaccession commitments on a broadrange of products and services.

China continues to build up capacityin steel, autos, tires and other basicindustries, despite a glut of capacity inthese industries worldwide. China'sactions are helping to spur the layoffsthroughout the auto parts industry andhave already wreaked havoc in steel.Other industries will soon experienceChina's onslaught.

TWe’re Getting the

By George Becker

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We’re Getting the U.S.-China RelaU.S.-China Rela


Violations rampantRampant violations of U.S. intellectu-

al property rights have resulted in a lossof billions of dollars per year. This is inspite of five separate agreements signedby the Chinese government in the past10 years to crack down on this problem.Interestingly, the Chinese government issuccessfully protecting its interests inthe official logo for the 2008 Olympics,of which there is virtually no piracy.

And intellectual property rights viola-tions aren't just impacting movies, musicand software — they strike at the heartof manufacturing. Not only does Chinaoutright copy the basic industrial designsof our companies, but their violationsalso result in downstream damage.Reverse engineering of productionequipment — resulting in equipmentthat costs but a fraction of what our pro-ducers have to pay — leads to lowercosts for their manufacturers. Even inindustries where labor is but a small costof the overall cost of production, Chinais finding a way to unfairly bend therules of competition.Unfair competition

Here at home, our manufacturers arefinding it harder and harder to compete

against an economic system that doesnot allow workers to share in the fruitsof their labor, is built on subsidizedinputs and capital, stolen intellectualproperty and other unfair advantages.The "China Price" is a common termused by U.S. businesses as the pricethey must meet if they are going to beable to compete, telling suppliers what isnecessary if they are to buy their prod-ucts. Many have decided they cannotcompete and have gone out of businessor relocated their facilities. Other com-panies like Delphi, have cut theAmerican Dream to shreds by declaringbankruptcy and planning on major shiftsof production and jobs to China whilethey try to abandon the promise of asafe and secure retirement and healthcare for their employees.Trend accelerates

American companies are acceleratingthe trend of production moving toChina. Today, almost 60 percent ofproducts exported to the U.S. fromChina come from foreign-invested enter-prises. Rather than relocating to Chinato serve the Chinese market, they havechosen to source from China to servetheir customers here at home - accelerat-ing the relocation of production andfueling the high and rising trade deficit.But, they are not stopping at movingtheir factories; increasingly they aremoving their research and developmentto China too. This latest trend is evenmore ominous, as it will accelerate themovement of production that is the keyto future profitability and the high end,high paying jobs that go with it.

There is much discussion these daysabout whether a rising China is a threat

or an opportunity. U.S. policy hasfocused too much on opportunity forsome and too little on the risks for us all.Because of this policy blind-spot, the"threat" in terms of economic relationswith China has turned into reality. Jobs,lives and livelihoods are being lost asour standard of living comes underattack.

It is not too late, however, to replacethe current approach with a clear, con-sistent set of policies that will ensurethat our trade laws are properly enforcedand that we begin to restore vitality toour nation's manufacturing base. At thesame time, a comprehensive set of poli-cies must also be advanced to promotethe interests of our service and agricul-ture sectors, which face similar pres-sures to those that the manufacturingsector has experienced. And China isaggressively pursuing the developmentof its high tech sector resulting in thefact that we now have a $36 billiondeficit with China in advanced technolo-gy products.Swept under the rug

The Bush Administration continuesto try and sweep the problems under therug. They have virtually ignoredChina's manipulation of its currency.Only recently have they begun toaddress China's rampant violations ofour intellectual property rights as thepiracy of our rights continues to exceed90%. A trade deficit of roughly $200billion is hard to ignore, but PresidentBush is doing a pretty good job of justthat. Hundreds of thousands of goodpaying jobs have been lost, and little isbeing done by the Administration.

Despite the failure of last month'sWTO meeting in Hong Kong, thePresident is still pushing for a multilater-al trade deal. Common sense would dic-tate that we demand compliance withpast promises before we offer them newbenefits based on the mistaken beliefthat they will live up to not only theirpast promises, but the new ones theynow promise to keep. President Bushshould take to heart the Chineseproverb, "Fool me once shame on you.Fool me twice, shame on me."

U S W @ W o r k • w i n t e r 2 0 0 6 25

George Becker is a commissioner on theCongressionally-created U.S.-China Economic andSecurity Review Commission and is the immediatepast President of the United Steelworkers.

e Shaft

Former President Becker rallying thethousands of steelworkers whom hemobilized to protest PNTR at thenation’s capital.

e Shaft

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ations:ations:

Part one of a two-part series


ontinental Tire North America'sdecision to lay off more than 500workers in Charlotte, N.C.

revealed a company deaf to workers'concerns and equally handicapped indealing with the highly competitive U.S.consumer market.

Unlike other companies that haveworked successfully with our union todevelop strategies to win market share,German-owned Continental appearsdetermined to service its shrinkingdemand in the U.S. and Canada withimports.

"Continental never developed a ratio-nal marketing strategy nordid it make ade-quate invest-ments in

product research and development theway other successful companies have,"said USW executive vice president RonHoover.Company repeats mistakes

"Instead of developing a constructivedialogue with our union and pursuingnew solutions, this company keepsrepeating its mistakes while demandingconcessions from us.''

In January, Continental announcedplans to lay off 241 employees from itsCharlotte plant in March, and another272 in late June. The plant, one of thelargest manufacturing employers in

Charlotte, employed morethan 1,000 workers

before the cuts wereannounced.

Three days after the layoff announce-ment, Continental unveiled a plan toinvest $60 million to $70 million in anon-union tire plant in Mount Vernon,Ill. The tire maker said it will cut hourlywages there by 10 percent and requirenon-union employees to contribute tohealth care coverage for the first time.

A few months earlier, in October,Continental laid the cornerstone for anew $260 million tire plant in theBrazilian state of Bahia that will have anannual capacity of 6 million passengertires and 700,000 commercial tires.

The layoff announcement followed awarning from the company last fall thatthe Charlotte plant might be in jeopardyand would reduce production if workersdid not agree to a 35 percent cut inwages and benefits. The company's tirebusiness is a unit of a German automo-tive giant, Continental Group.

“We never had any problem sittingdown with the company to discuss effi-ciencies and how the plant could becomemore cost effective," said MarkCieslikowski, president of USW Local850 . "But for solutions to be developed,both sides need to share critical informa-tion and engage in meaningful dialogue.” Layoffs will hurt community

The members of Local 850 are con-cerned that the layoffs, possible wagecuts and other reductions in productionwill severely impact the Charlotte com-munity, impairing workers' ability topurchase goods and services and paytaxes.

"We remain open to the possibility ofinvestigating ways to maintain produc-tion in Charlotte,'' Cieslikowski said."It's up to the company to decidewhether they will disclose informationvital to generating the sincere dialoguerequired to come up with real solutions."

The union's current contract withContinental expires April 30.

If Continental's announcement isimplemented, production at theCharlotte plant would be roughly cut inhalf to 12,000 tires a day. Some produc-tion is expected to shift to the non-unionplant in Mount Vernon, or other loca-tions outside the United States.

CContinental's failed strategies trigger layoffs

Deaf to Workers,Blind to InnovationDeaf to Workers,Blind to Innovation

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U S W @ W o r k • w i n t e r 2 0 0 6 27

Before Titan Tire Corp., a sub-sidiary of Titan International Inc.,could close on its $100 million

acquisition of Goodyear's North Americanfarm tire business it had to provide USWmembers with job protections.

It took some 10 months of toughnegotiations, but in the end, a 725-memberUSW Local at Freeport, Ill., won enoughemployment security language to allowTitan to purchase their Kelly-Springfieldplant, which had been part of the largerGoodyear group for 42 years.

"If you're going to leave the security ofa Goodyear, an $18 billion a year compa-ny, then you had better replace it withsomething in the contract that makes jobsecurity a priority for the members yourepresent,'' Local 745 President SteveVanderheyden said.

In addition to the contract approval inFreeport, some 500 Local 164 members atTitan's large farm tire plant in Des Moines,Iowa, also approved a new contract withsimilar terms and a common expiration.Damage claims dismissed

Soon after, Titan withdrew a civil Ricosuit it had filed in September, 2000,against the USW, two of its local unionsand 125 individual defendants related to acorporate campaign waged against thecompany during a record 40-month strikeat plants in Des Moines and Natchez,Miss.

Although Titan had sought $240 mil-lion in damages, the company will receiveno money and there was no admission ofany wrongdoing by any of the defendants.

"We opposed this action every step ofthe way and we never gave an inch,"USW President Leo W. Gerard said. "I'mpleased this is finally over with absolutelyno payment of money, let alone any hintof wrongdoing by any defendant, and wenow look forward to an improved relation-ship with Titan."

The sale of the Goodyear farm tirebusiness to Titan included the factory,property and equipment in Freeport aswell as tire inventories. Titan will pay roy-alties to manufacture and sell Goodyearand Kelly brand tires in North America.Plant closures barred

Plant closures are barred for at leastfive years and there are no possibilities oflayoffs for at least two years under theFreeport contract, which was negotiated asa result of a successor agreement betweenthe union and Goodyear. After two years,manning levels are guaranteed at 90 per-cent of current levels for production workand at 95 percent for maintenance,Vanderheyden said.

Additionally, the contract includedwage and pension increases, maintenanceof current health care plansand language guarantee-ing that products soldby Titan must be manu-factured in Freeport orat a sister plant in DesMoines, Iowa.

Goodyear is coveringhealth care benefits forcurrent retirees.

Current employees

with 20 years of service will continue toearn service credit for a Goodyear pensionwhen their combined years of service withTitan and Goodyear reach eligibilityrequirements. A new Titan pension planwas set up through the SteelworkerPension Trust for other employees.

Most new hires will start at 70 percentof the full rate for jobs assigned andprogress to full pay over five years.Employees currently laid off will not beconsidered as new hires for pay purposeswhen recalled.

"This was an extraordinarily complexset of negotiations that involved represen-tatives of the international union, Local164 in Des Moines, many benefit adminis-trators and Goodyear as well as Titanmanagement,'' Vanderheyden said.

"There are tons of transition issueswhen you have contract changes thatrelate to a change in ownership so we real-ly appreciated the ability to access neces-sary resources, especially the InternationalUnion."

Members win protections, Titan withdraws RICO suit

BTitan Job SecurityTitan Job Security


The sale of Georgia-Pacific (GP) Corp. to Koch(pronounced “coke”) Industries Inc. will notaffect USW contracts because of a successor-

ship clause that is in place.Privately-held Koch purchased GP for $13.2 billion

and will assume $7.8 billion of the company’s out-standing debt. Both companies finalized the deal onDec. 23, 2005. GP will become an indirect whollyowned facility of Koch and will retain its name.

GP is the third largest pulp, paper, and forest productscompany in North America and the fourth largest in theworld. With the purchase of GP, Koch becomes the larg-est private company in the U.S., ahead of Cargill.

Since GP agreed to a successorship clause for collectivebargaining agreements with the former PACE in June 2001, the USW’s contractterms and provisions with GP will remain in place through the expiration of theagreements.Koch mostly non-union

Most of Koch’s operations are nonunion. Other than GP, there is USW rep-resentation at the company’s Flint Hills Resources refinery in Minnesota, KochCellulose fluff pulp mill in Brunswick, Ga., Koch Nitrogen Company anhydrousammonia production plants in Sterlington, La., and Cardinal Pumps & Exchangersfacility in Salem, Ohio.

By being a privately owned company, Koch does not have to release its financialstatements or other financial data. The company says it has a historical practice ofreinvesting up to 90 percent of its earnings back into the business and that beingprivately owned gives it the ability to focus on long term profits and growth.

Operating under a philosophy called Market Based Management®, Kochconsiders its employees to be entrepreneurs who are expected to use theirknowledge and skills to find better ways of doing their jobs. The company saysit believes in rewarding employees based on merit, not seniority, a policymarkedly at odds with our union’s belief in the right of qualified workers to bepromoted on the basis of seniority.

Folding carton producer Rock-Tenn agreedin January to maintain its existing definedbenefit pension plan at its Clinton, Iowa, plant

The company originally proposed a two-tierpension plan: All new hires would be excludedfrom the company’s defined benefit pensionplan. Existing employees would only havereceived enhancements to their 401(k) plan.

“We think the coordinated efforts of theRock-Tenn union council and the mobilizationwe engaged in contributed to the companychanging its position,” said Regional DirectorBill Gibbons.

He said local unions within the council

coordinated their mobilization efforts,exchanged information and were in constantcommunication with each other. They handedout leaflets, wore stickers and organizedparking lot rallies.

The council is committed to three majorpriorities: affordable, quality health care forevery worker; maintaining and improving adefined benefit pension plan for all employees,including new hires; and achieving reasonablewage increases.

Negotiations are continuing at the company’sother locations in Lynchburg, Va., Chattanooga,Tenn., Dallas, Texas, and Merced, Calif.

Solidarity pays off for Rock-Tenn Council

A forklift operator prepares to load a semi-truck with Brawny shop towels at aGeorgia-Pacific facility.

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anada has bestowed one of itshighest honors for lifetimeachievement, the Order of

Canada, on Lynn Williams, retired presi-dent of the United Steelworkers union.

Williams, 81, of Toronto, the firstCanadian to serve as InternationalPresident of the Union, was appointedan Officer of the Order of Canada onFeb. 3 with 55 others who made positivecontributions to the arts, business, edu-cation, science and social services.

Created in 1967, the Order wasestablished to recognize the exemplarylifetime contributions made byCanadians to Canada and to humanity atlarge. Its motto is Desiderantesmeliorem patriam, which means,"Desiring a better country."

Williams, who grew up in Ontarioduring the Great Depression in a social-ly-conscious family, became president ofthe USW in 1983 on the death of hispredecessor, Lloyd McBride.Turbulent times

He led the union from 1983 to 1994,economic turbulent times when the steelindustry was confronting unfairly pricedimported products and undergoing mas-sive changes that destroyed tens of thou-sands of jobs.

Almost immediately on assumingoffice, Williams had to deal withattempts by Wheeling-Pittsburgh Steelin 1985, and then USX Corp. in 1986, todestroy the union at both of those com-panies.

His innovative leadership in bar-gaining resulted in agreements thatempowered members to participate in alllevels of a company's decision-making.In several steel companies, such partici-pation extended from the shop floor tothe board of directors.

Involving workers in helping acompany run as efficiently and effec-tively as possible, he felt, would lead tobetter jobs and better lives for workersand their families as well as increaseproductivity and profitability foremployers.

"Workers really have something tosay. But it has to be done in a waywhere working people are recognized asimportant in the institutions where theywork," he said.

Williams was also behind the cre-ation of the Institute for CareerDevelopment and Voluntary EmployeeBenefit Associations (VEBAs) as wellas financing through contracts of theStand Up for Steel coalition with indus-try. VEBAs have become invaluable instrengthening workers' retirement securi-ty.

His faith that ordinary people work-ing together could bring about enormousimprovements in their own lives and insociety evolved during his early years insouthern Ontario.

He helped his father, a pastor for theUnited Church, deliver food baskets tothe needy at Christmas time during theDepression and participatedin family discussions aboutthe economic system andhow it should be changed toput people back towork.

Later, as a coun-selor at a YMCACamp on Lake Erie,he learned from amentor, camp directorHowardConquergood, how astrong labor move-ment could affectsocial and politicalchange.

He joined the AirTraining Corps duringthe early years ofWorld War II while astudent at McMasterUniversity. Aftergraduation, he trans-ferred to the CanadianNavy and wasassigned as a telegraph operator inNewfoundland.

After the service, he returned to theYMCA, doing community work andorganizing boy's clubs in Hamilton, andstudied for a Master's degree in econom-ics at the University of Toronto.

In 1947, he took a job at John InglisCo., a USW-organized appliance manu-facturing plant in Toronto, where hejoined the union. Within a few months,he was recruited by the CanadianCongress of Labour to organize depart-

ment stores in Ontario and Regina,Saskatchewan.

In 1956, he was hired by LarrySefton, then a director of USW District6. He organized new members on theNiagara Peninsula and led major negoti-ations in the nickel and other nonferrousindustries in Canada.

Williams was elected director ofDistrict 6 in 1973 and USWInternational Secretary in 1977. Hebecame the union's fifth InternationalPresident in 1983 by a vote of theInternational Executive Board followingMcBride's death.

Elected by the membership to com-

plete McBride's term on March 29,1984, he was unopposed for election toa full term in 1985, and again in 1989.While president, he was a member ofthe AFL-CIO Executive Council andserved on the boards of the IndustrialUnion Department, the InternationalMetalworkers Federation and theInternational Confederation of FreeTrade Unions. He was a member ofmany other national and internationalorganizations.

CCanada Honors Lynn WilliamsCanada Honors Lynn Williams

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USW Members atCorning Ratify Pattern-setting Pact.

four-year contract covering1,500 USW-represented work-ers at several Corning Inc.

plants in Corning, N.Y., is setting thepattern for bargaining at other companyplants around the country.

The contract, ratified Jan. 20 bymembers of USW Local 1000, providesa $500 signing bonus and wageincreases of 4 percent in the first yearand 3 percent in the second, third andfourth years. Other improvementsincluded gains in pensions, disabilitypay and life and dental insurance cover-age.

The pattern was continued inHarrodsburg, Ky., where negotiationswere concluded on Jan. 28, said TimTuttle, who chairs the USW's GlassIndustry Conference. Corning contractswith five other USW locals at plants inCanton and Oneonta, N.Y.,Wilmington, N.C., and Danville andBlacksburg Va., all expire by the end ofJuly.

Pipe Plant Reopens, Saved From China Saleroduction and maintenance employees of Durabond Pipe approved their firstUnited Steelworkers contract by a 4-to-1 margin at a Pennsylvania plant thatwas nearly sold to Chinese investors before the union intervened.

The five-year agreement covers 77 production and maintenance workers at afacility in Steelton, Pa. that was once owned by the former Bethlehem Steel Corp.Contract highlights include wage hikes averaging 3 percent, substantial job classincreases, health care and dental coverage, a company-matched 401k plan and profitsharing.

Bethlehem had attempted to sell the plant's equipment to the Chinese but topunion officers intervened to halt the sale, allowing Local Union 1688, plant officials,local and state agencies and economic development groups time to make a success-ful offer to the bankruptcy court.

Durabond produces large diameter pipe for oil and gas transmission and also hasa pipe coating operation, and a steel structural fabricating and coating operation atthe Steelton facility. The facility produced its first commercial order of pipe in thesummer of 2005.

Decreased Tuition Availablenion members' immediate families and those belonging to Working America,a community affiliate of the AFL-CIO, are eligible to pay a reduced tuitionrate of $200 per credit hour for the National Labor College's Bachelors in

Professional/Technical Studies (BPTS) degree program. Tuition had been $982 percredit hour.

The BPTS program allows workers to get college credit for their significant tech-nical or professional training and experience, and offers a degree completion cur-riculum that focuses on general studies. Students can earn their bachelors degreewithout significant disruption to their work schedules and family life. Tuition forunion members remains at $150 per credit hour.

More information can be found at http://www.georgemeany.org/.

ABG Office Closings part of the ongoing consolida-tion of facilities related to merg-ers, the former ABG office head-

quarters at 3362 Hollenberg Drive,Bridgeton, Mo., will close on March 17,2006. For any assistance after that date,contact your District Director.

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rotestors were kept at a distance when President Bush addressed business lead-ers and other conservative supporters at the Grand Ole Opry House in Nashvilleon Feb. 1, the day following his State of the Union address. Labor activists

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Wal-Mart: The High Cost of Low Pricehink you're getting a bargain by shopping at Wal-Mart? You might reconsider once yousee the feature length documentary about the retail giant's assault on worker rights, jobsand community values. Producer/director Robert Greenwald takes viewers into the lives

of families, communities and businesses who are struggling to survive and fight the corporatebehemoth.

Copies of the film are available in the DVD or VHS format for $12.95 and can be obtainedby going to the movie's website at http://www.walmartmovie.com/.

OCAW Secretary-TreasurerErnie Rousselle Passes at 71

ormer Oil, Chemical & AtomicWorkers Secretary-Treasurer ErnieRousselle died Jan. 27 from complica-

tions of lung cancer. He was 71.Rousselle, of Bridge City, La., joinedOCAW in 1955 when he was an employeeof the American Cyanamid Fortier plant in

Avondale, La. He served Local 4-603 as a trustee, recordingsecretary, financial secretary and negotiating committee mem-ber. When Local 4-603 merged with Local 4-447, he waselected president and District 4 alternate member of theOCAW executive board.

In 1966, Rousselle was appointed an international repre-sentative. He was an OCAW Vice President from 1979 to1981, and was in charge of the union's Health and Safety andCollective Bargaining departments. He also served in theAFL-CIO Maritime Trades department and was on the execu-tive board of the AFL-CIO Industrial Union department.

In 1991 he was elected OCAW secretary-treasurer, a posi-tion he held until his retirement at the union's last regular con-vention in August 1997.

Women Discuss Leadership Issuesnternational vice president Tom Conway attended a meeting withPennsylvania's District 10 Women of Steel to share informationon what is happening in their workplaces and communities.

Yvette D'Ath of the Australian Workers Union was a special guest.She talked about the women's movement in Australia and said theissues facing working class women there are very similar to the chal-lenges and struggles faced by working-class women in the UnitedStates.

Gloria Bingle, a long time activist, told Conway that he shouldpress to change the culture of the USW, making it more inclusive ofwomen and minorities from the bottom to the highest levels of theorganization.

Conway acknowledged their goals and encouraged them, sayingthat they must be more involved in the collective bargaining processbecause that is where new leaders can make a mark.

The Women of Steel program gives our members opportunities tonetwork and has helped give the union a family image. The nextstep is getting more women elected or appointed to key positions.

Seated are Sandy Powell (Local 3657), Yvette D'Ath (Australian Workers Union), Tom Conway (International Vice President) and Jan Finnegan (Local 2227). Standing areAnn Hustwit (Local 1408), Gloria Bingle (Women's Coordinator, District 10), Lee Ann Jendrejeski (Local 1196), Barbara Kuhn (Local 1196), Candace Crail (Local 1138).

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URW’s Joseph Johnson Dies at 76

oseph Johnston, an International VicePresident of the United RubberWorkers union for nine years in the

1980s, died on Jan. 30 at the University ofPenn Hospital in Philadelphia. He was 76.Johnston, of Cape May, N.J., served asURW vice president from 1981 to 1990.

Prior to that, he had been a director of URW District 2, head-quartered in Trenton, N.J. He retired in 1993.

"He always put the plight of the working man first and wastotally dedicated to the labor movement,'' said Ron Hoover,USW International executive vice president, R/PIC. "I learneda lot from him."

Johnston joined URW Local 434 in 1952 at a Goodrichplant in his native Riverside, N.J. At various times, he servedthe local union as president, vice president, chief steward,shop steward and time study representative. He was appointeda URW field representative in 1968.

He was a vice president of the New Jersey State AFL-CIO,an executive board member of the New Jersey State IndustrialUnion Council, AFL-CIO.

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USW members opened our hearts and our wallets tothe victims of Hurricanes Rita and Katrina in theGulf Coast and to tornado victims in southern

Indiana.Some $1.2 million in individual contributions were

collected through the union’s Rapid Response networkfrom USW members and distributed to others who losttheir homes, their jobs or had substantial damage toproperty. The International donated an additional $100,000to relief efforts.

The outpouring of help came from hundreds of localsacross the country and through plant gate collections,fund-raising raffles and donations from local unions,which often matched individual member contributions.

Donations came from former PACE and USWA localsalike—concrete proof that last year’s merger is proving asuccess in more ways than one.Joint effort

“This is one of the real early evidences that we had amerger, not an affiliation,” said International Secretary-Treasurer Jim English. “No one asked how many peoplewere steelworkers, how many were PACE members. Itwas just a joint effort.”

The USW sent the money to local unions in areasaffected by the hurricanes and the tornado, and auditorsfrom the International trained the locals on how toproperly distribute it on the basis of need. Preference wasgiven to members who lost their homes and/or their jobs.

All of the USW-represented workers at FishkingProcessors, a fish processing plant in the smallAlabama community of Bayou La Batre,received financial aid because theirfacility was entirely shut down by Katrina.The hurricane flooded the building witheight feet of water, knocking out refriger-ation, air conditioning and electricity neededto maintain operations.

More than 1,000 USW members hadhomes that were completely destroyed and 767reported severe damage. A first round of payouts averaged$428 for those who lost homes and $311 for those withserious damage; a second round of checks paid onaverage $419 and $301 to homeowners with complete loss

and serious damage. “You will never know how much this can help each

family,” Gailen Morrison of Wiggins, Miss., wrote in athank-you letter to the union and its members. “It is hardto get back on your feet after such devastation.”

After the storms, blue tarps covered the roofs of mostof the homes in Wiggins, located 30 miles inland, and thehome of a Coastal Paper Co. plant whose members werethe first group to organize after the PACE-USW merger.

Often, the money was only partof the effort. For example,Local 5702 members inGramercy, La. donatedmoney from theirtreasury, gatheredclothing, food andother supplies andhelped distribute dona-tions made from relieforganizations. Retireeseven helped cook forthose withoutpower.

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BATON ROUGE - Not long after Hurricanes Katrinaand Rita ravaged the Gulf Coast, residents returning to theirhomes and workplaces began complaining about coughs,sore throats, breathing difficulties and skin rashes—illnessesmany doctors believe are caused by mold, dust and otherhazards left behind by churning floodwaters.

To help prevent these illnesses, a unique training programbegan last November by the Tony Mazzocchi Center forSafety, Health and Environmental Education, a project of theUnited Steelworkers and the Labor Institute, along with theDeep South Center for Environmental Justice. Grant supportcame from the National Institute of Environmental HealthSciences.

The initiative shares with the community the USWmembership’s expertise in preventing dangerous environmentalexposures—a knowledge gained over the years through theunion’s successful occupational safety and health programs.

“Tens of thousands of Gulf Coast residents survivedferocious winds and water,” explained USW President LeoW. Gerard. “We don’t want them getting sick or sufferingany more. We want to do everything in our power to helpthem recover and rebuild their communities.”

Many homes were deemed too dangerous to enter withoutprotective gear, so the union provided training participantswith respirators to limit mold spore inhalation. Tyvekprotective suits, rubber gloves, boots and goggles weredistributed to provide head-to-toe protection.

Hurricane VictimsReturn Home SafeThanks to Union Training

“Most people don’t have the equipment or the knowledgeto properly clean up their homes and workplaces and protectthemselves from harm and the program helps to remedythat,” said Jim Frederick, Assistant Director USW Health,Safety and Environment Department.

More than 1,000 homes around a Murphy Oil refinery inChalmette, La., for example, were contaminated with oilysludge after a storm surge from Hurricane Katrina dislodgeda storage tank from its foundation spilling its crude. Moldwas growing on walls, ceilings, furniture and fabrics.

“People have a right to return to healthy homes andneighborhoods, and acquiring this equipment will help themexercise that right,” added Paul Renner, Associate Director ofthe Labor Institute, a New York nonprofit that developed thecurriculum.

The first training session, held at the Elm Grove BaptistChurch in Baton Rouge, alerted union members and otherhurricane victims to a range of potential hazards from faultyelectrical wiring and mold contamination to heavy metals nearSuperfund sites.

Organizers were looking for opportunities to share theunion’s knowledge on preventing dangerous environmentalexposures. Two programs were held by the end ofDecember, with additional sessions planned for Baton Rouge,New Orleans, Houston, Memphis and Dallas.

(Right) USW members receive special training dealingwith health and safety issues following HurricaneKatrina. (Bottom Left) Bessie Good, a 19-year employeeat Fishking Processors in Bayou La Batre, Alabama,receives her Katrina relief fund check.

U S W @ W o r k • w i n t e r 2 0 0 6 33


National Wire Fabric Attacks Seniorityability to adequately train workers for those jobs.“We know they’re not spending much time on training,”said McClain. He said he also heard that the company isnot meeting its quotas and that there have been morework injuries.Dutch workers apply pressure

National Wire Fabric is a manufacturer of wovensynthetic and metallic screens for forming, pressing anddrying applications in the pulp and paper industry. Many ofthe largest USW employers in the paper industry are itscustomers: Blue Ridge Paper, Domtar, Green BayPackaging, Georgia-Pacific, International Paper, PotlatchCorporation, Smurfit-Stone, Temple-Inland, WausauMosinee and Weyerhaeuser.

NWF is a subsidiary of Gamma Holding, Inc., which isbased in The Netherlands. The USW contacted the majorDutch industrial union, FNV Bondgenoten, for help insetting up a meeting with Gamma officials. LastNovember a delegation from Local 1671 traveled to TheNetherlands to meet with FNV union stewards, workercouncil members and Gamma corporate executives,including the CEO, Dr. Meint Veninga, and the head ofhuman resources, Fokko Keun.Replacement workers hired

Denying that the company was engaged in unionbusting, the company officials said they were not violatingany U.S. laws and would retain the replacement workers.

The company’s response surprised FNV members, butthey immediately took action. They arranged forthe USW delegation to speak at the FNVstewards’ meeting of Gamma subsidiary Vlisco.They translated a press release into Dutch andobtained coverage in all of the major Dutchnewspapers. They prepared an English/Dutchflyer and distributed it outside the Vlisco facilityand at all Gamma’s European facilities.

In addition, the International Textile, Garment andLeather Workers’ Federation wrote a letter to Mr. Veninga,expressing concern over the breakdown in industrialrelations at the Star City facility.

In January, the USW sent a letter to the U.S. State Dept.,charging NWF and Gamma with violation of the Organizationfor Economic Cooperation and Development (OECD)Guidelines for Multinational Enterprises. The basis of thecomplaint to the OECD is that Gamma is holding up thesettlement of the labor dispute by its refusal to reinstateworkers after all substantive issues related to the contractwere agreed upon. The union asked the State Dept. tointervene in the dispute.

USW members are responding to the strikers, call forhelp. Local 1671 members spoke to delegates at the USWhealth and safety school last fall and collected over $1,000.Delegates to the Jan. 23-25 National Paper Bargainingconference collected over $4,000 for the NWF strikers.

Those wishing to send messages of support and walkon the picket line can contact Local 1671 Vice PresidentDan Morrison at [email protected].

Six months into their strike, National Wire Fabric(NWF) workers stay united in their defense ofseniority rights at the Star City, Ark., plant and reach

out for support from other USW locals and internationalunions.

None of the 56 strikers from USW Local 1671 havecrossed the picket line since the strike began July 23,2005. They remain firm despite the company’s hiring ofabout 35 replacement workers and insistence that thoseworkers stay if a contract is ratified.

Workers voted on Jan. 17 against an unconditionalreturn to work because they did not want to train thereplacement workers and have them try to decertify theunion a year later, said Local 1671 President MichaelMcClain.

Seniority at the plant ranges from seven to 41 years.Thirty-six employees have at least 21 years of service,said McClain.

Despite the workers’ long years of service, NWFproposed to eliminate seniority rights and givemanagement total flexibility to assign work. That wouldhave meant putting people into positions where they hadlittle experience and ignoring seniority when it came toshifts worked.

“These are skilled jobs, they aren’t jobs you walk in offthe street and do,” said McClain.

He is concerned about how flexible work rules couldimpact safety and does not have confidence in the company’s

These are skilled jobs, theyaren’t jobs you walk in off

the street and do.“ “

Dutch workers distribute flyers on National Wiresituation to employees of Vlisco, a subsidiary ofGamma Holding, Inc., in The Netherlands.

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The Procedure is available to any USW representedemployee who is subject to a union security clause but who isa non-member and who objects to his or her union securityfees being expended on nonrepresentational activities.Paragraph 1 of the Procedure states:

"1. Any individual, who is not a member of the UnitedSteelworkers of America and who is required as a condition ofemployment to pay dues to the United Steelworkers ofAmerica pursuant to a union security arrangement but objectsto supporting ... political or ideological expenditures by theUnited Steelworkers of America which are not necessarily orreasonably incurred for the purpose of performing the duties ofan exclusive collective bargaining representative shall have theright upon perfecting a notice of objection to obtain anadvance reduction of a portion of such individual's dues oblig-ation commensurate with expenditures unrelated to collectivebargaining as required by law."

An eligible employee who objects to the USW expendingmonies for nonrepresentational activities such as charitable orpolitical activities may choose to perfect a notice of objectionunder Paragraph 2 of the Procedure, which states:

"2. To perfect a notice of objection, the individual mustsend an individually signed notice to the InternationalSecretary-Treasurer during the first thirty days following eitherthe individual's initial date of hire into the USW representedunit or an anniversary date of such hiring: provided, however,that if the individual lacked knowledge of this Procedure, theindividual shall have a 30 day period commencing on the datethe individual became aware of the Procedure to perfect anotice of objection; and, provided, further, that a member whoresigns membership shall have the opportunity to object withinthe 30 day period following resignation.1 Any objection thusperfected shall expire on the next appropriate hiring anniver-sary date unless renewed by a notice of objection perfected asspecified above.

1 Any right of a resignee to pay a reduced amount under thisProcedure may or may not be superceded by the resignee'scheck-off authorization."

Objectors are not USW members and have no right to votein union elections or to be a candidate, no right to participatein union meetings or activities, and no right to vote on contractratification.

Upon perfecting properly a notice of objection, the objectoris entitled to an advance reduction of a portion of his or herunion security obligation commensurate with expendituresunrelated to collective bargaining, as required by law.International Secretary-Treasurer James D. English has madethe determination, based upon expenditures for the calendaryear 2003, that the reduction percentage under the Procedureis 7.88% (25.97% if organizing expenditures were to beincluded).

There are court decisions holding that organizing activitiesare non-representational activities. The USW does not agreewith those rulings. However, without intending to waive itsposition that its organizing expenditures are not subject toobjection and without intending to waive its right to assert itsposition if there is a challenge to the reduction percentage, theUSW has deemed it expedient to apply the 25.97% figure tomost current and future objectors. Therefore, an objector willbe charged 74.03% of the regular dues amount. Each objectorwill be given a detailed breakdown between representationaland non-representational activities with a report by an inde-pendent auditor.

The Procedure contains an appeals system under whichchallenges to the reduction percentage determination must befiled within 30 days of the Notice of Determination and are tobe decided by an impartial arbitrator appointed by theAmerican Arbitration Association. Disputed amounts areescrowed pending appeal.

While a notice must be individually signed and timelymailed, there is no form for a notice. Processing is faster, how-ever, when the notice contains the objector's name, address,local union number, and employer.

NOTICE TO ALL EMPLOYEES COVEREDBY A UNION SECURITY CLAUSE

All USW represented employees covered by a union security clause have the right, under NLRB v. GeneralMotors, 373 U.S. 734 (1963), to be and remain a nonmember subject only to the duty to pay the equivalent ofunion initiation fees and periodic dues. Further, only such non-member employees have the right, underCommunications Workers v. Beck, 487 U.S. 735 (1988), to limit payment of union-security dues and initiationfees to certain moneys spent on activities germane to a union's role as collective bargaining representative. Thislatter statutory right is embodied in the USW's Nonmember Objection Procedure.

1 Any right of a resignee to pay a reduced amount under this Proceedure may or may notbe superceded by the resignee’s check-off authorization

U S W @ W o r k • w i n t e r 2 0 0 6 35


Have You Moved?Notify your local union financial secretary, or clip out this form with your old address label and send your new address to:USW@Work, USW Membership Department, 1440 South Byrne Road, Toledo, OH 43614

Name

New Address

City

State Zip

he Sago coal mine in Upshur County, W.Va., where 12miners were killed after a Jan. 3 explosion more thantwo miles in from the mine entrance, had a history of

safety violations, yet government records show the mine own-ers escaped significant fines.

One week later, a coal miner was killed in a roof fall inPikeville, Ky. Three weeks after Sago, two more coal minersdied as a result of a smoky blaze that began on an undergroundconveyor belt at the Aracoma Coal Alma No. 1 mine inMelville, W.Va. In all three cases, the fatally-injured minersdid not have union protections.

The tragedies led to Congressional hearings in Washingtonand the introduction of legislation in West Virginia to speed upemergency response to mine disasters, employ technology totrack miners and mandate reserve oxygen supplies in mines.

Since taking office in 2001, the Bush administration has cutfunding and staff at the Mine Safety and Health Administration(MSHA), the federal agency in charge of enforcing the nation'smine safety laws.

These tragedies, along with the March 2005 explosion at aUSW-represented BP refinery in Texas, serve as reminders ofthe importance of effective health and safety programs thatinclude and involve workers and unions.

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Documents

34572 Winter 2006X.qxp 2/9/2006 5:38 PM Page 1assets.usw.org/News/USWatWork_PDFs/34572.pdfuntil a final decision on the logo,slogan and magazine was unanimously accepted. Unity and