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EXTENSIONS of REMARKS December 16, 1980 34356 EXTENSIONS OF REMARKS December 16, 1980 . EXTENSIONS OF REMARKS U.S. STEELMAKING GIANTS industrial country. Nevertheless, the The corporate catchword for this crisis is SIPHON OFF PROFITS American steel industry is in trouble. productivity. In the United States produc­ The problems of the industry, ac­ tivity is increased mainly by requiring a worker to do two or three jobs and by cut­ HON. JOHN F. SEIBERLING cording to Mr. Fisher, are that the ting back the maintenance of equipment OF OHIO large steel corporations have siphoned rather than improving facilities. IN THE HOUSE OF REPRESENTATIVES the money out of steelmaking and An example of the cutbacks is U.S. Steel's have invested it in other more profit­ South Works plant in Chicago, where half Monday, December 15, 1980 able enterprises, such as the chemical, the 8,000 employees are furloughed. Most of e Mr. SEIBERLING. Mr. Speaker, the oil-drilling equipment, and plastics in­ them expect to be back at work by spring, steel industry is not only a key sector dustries. In the case of the Youngs­ but metallurgical inspector Don Jordan of the economy of the region of the town Sheet & Tube Co. and Jones & says, "U.S. Steel told us they were going to run the plant permanently with 4,000 work­ country from which I come but is vital Laughlin Steel Corp., the steel firms ers, and now they're doing it. This is not a to the economy of the Nation. It is were purchased by conglomerates who temporary cutback." also essential for our military defense. used their cash flow for other invest­ In fact, rather than developing new facili­ Several years ago, a number of us ments and let the steel plants deterio­ ties, steel corporations profit by dismantling Members joined together to form the rate. plants and eliminating workers. For exam­ Congressional Steel Caucus, an action Mr. Speaker, this problem is not ple, Bethlehem Steel Corp. closed major sec­ triggered by the closing of the new. I recall that, as long ago as the tions of its Johnstown, Pa., and Lacka­ Youngstown Sheet & Tube plants in 1950's, the studies of a Senate commit­ wanna, N.Y., plants in late 1977. Although much of the actual loss did not the Youngstown, Ohio area and the tee chaired by Senator Estes Kefauver affect Bethlehem in the third quarter of problems the industry as a whole was brought out that, even at that time, 1977, it was entered in the books that way. facing from foreign competition, some the big American steelmakers were This $477 million paper loss enabled Bethle­ fair and some unfair. While the ad­ behind the rest of the world in innova­ hem to offset its profits of the previous ministration's so-called trigger-price tion and in the adoption of new tech­ three years. The corporation got a tax mechanism has since helped curb nology. Apparently, this is still the refund of close to $140 million. some of the unfair competition, the case, over 25 years later. The newest domestic steel plant was built problems of the industry continue and Mr. Speaker, as a result of the elec­ in 1964 near Burns Harbor, Ind. Few steel the steel plants continue to shut down. toral success of Ronald Reagan, we are corporations have made any significant cap­ ital improvements in the last 25 years. What The Akron Beacon Journal of De­ witnessing a temendous drive to elimi­ improvements have been made seem to be a cember 11, 1980, contained a reprint of nate many of the Government regula­ result of pressure from government and en­ an article from the Los Angeles Times tions and Government incentives that vironmentalists. Bethlehem Steel was en­ by Alan Fisher, which contains some affect American industry and to rely couraged to build a new blast furnace at its startling and provocative information exclusively on the marketplace to reg­ Sparrows Point, Md., plant by the threat of as to the factors behind the tragic, ulate the Nation's economy. Undoubt­ $1,000-a-day fines from the state water re­ indeed dangerous, condition of the edly, it is a healthy thing to review ex­ sources board. The old, obsolete blast fur­ American steel industry. Mr. Fisher, isting programs to determine whether naces had caused tremendous pollution. The himself an employee of Bethlehem newly built "L" furnace is the largest, most they are necessary or compatible with efficient blast furnace in the Western Hemi­ Steel, is the editor of Steelworkers the Nation's basic needs. At the same sphere. Local 2609's newsletter. time, the steel industry stands as an The steel industry's work force was re­ The article points out that the example of the fact that not all regu­ duced from 544,000 in 1953 to 342,000 last newest domestic steel plant was built lation is undesirable and that the mar­ year. Today there are 80,000 fewer workers. in 1964 in Indiana and that few steel ketplace does not always produce the In spite of this, steelworkers turned out 25 corporations have made any signifi­ best results either for the Nation's percent more steel last year than in 1953. cant capital improvements in the last A study of 50 corporations by the consult­ economy or its defense. Given the im­ ing firm of Theodore Barry and Associates 25 years. He adds, interestingly portance of a strong steel industry to says that "the blame for lagging productiv­ enough, "What improvements have our well-being and national security, ity rests squarely on the shoulders of man­ been made seem to be a result from we can be sure that a continued fail­ agement-from chief executive to frontline pressure from the Government and ure of big steel to remain competitive supervisor." It adds that "the work ethic is environmentalists." He notes that will lead to eventual nationalization of alive and well" among the employees of Bethlehem was encouraged to build a the industry. these firms. new blast furnace at the plant where The full text of Mr. Fisher's article It is "alive and well" for Kevin Fahey, he works by the threat of fines from who works at a small, relatively new U.S. follows these remarks: Steel facility in Mountain Iron, Minn. "In the State water resources board be­ U.S. STEELMAKING GIANTS SIPHON OFF 1968, when our plant started operations, cause of the tremendous pollution PROFITS U.S. Steel expected us to produce 3.5 million caused by its old, obsolete blast fur­ BALTIMORE.-Formerly productive steel tons of iron ore pellets in the first year.... naces. He states that the newly built mills sit idle, empty of the machinery that We gave them 6 million tons." blast furnace is the largest, most effi­ forged the 1-beams and plate steel to build "We are the best work force in the world," cient blast furnace in the Western America. Older Workers who operated the says Fahey. A June 1980 congressional Hemisphere. open hearths and annealing pots are rel­ study on technology and steel industry com­ Mr. Fisher goes on to note that a egated to rocking chairs through early re­ petitiveness agrees, noting that U.S. steel­ tirement, while younger workers search for workers are still the most productive in the June 1980 congressional study states other jobs in other cities. world, though their rate of productivity has that American steelworker.s are still Great sections of the Mahoning Valley, not increased as rapidly as some others. The the most productive in the world but long called "America's Ruhr Valley," are study blames the slower increase in domes­ that a lower rate of productivity in­ now quiet. Twelve thousand steelworkers tic productivity on "continuing U.S. depend­ crease, as compared to foreign plants, who once filled the valley with the sounds ence on relatively small, old and poorly is the result of continuing dependence of steelmaking are gone. Sixty-five thou­ laid-out plants." on relatively small, old, and poorly sand other U.S. steelworkers are idled be­ The congressional report also showed that cause of plant cutbacks and shutdowns. It domestic steel profits over the last decade laid-out plants. The congressional has happened throughout Pennsylvania, were greater than those of any other indus­ report also showed, he notes, that do­ and in industrial cities such as Chicago, Bal­ trial country when compared to the assets mestic steel profits over the last timore and Los Angeles. invested. decade, as a percentage of investment, Veteran steelworkers say they have never These corporations have siphoned this were greater than those of any other seen things so bad. money out of steelmaking. They have diver- e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. December 16, 1980 EXTENSIONS OF REMARKS 34357 sified. The giant of the industry, U.S. Steel, the polls as to whether or not they de­ important House Banking Committee to has put its capital into more profitable en­ served it. Making such a decision now, take the chair of the Joint Economic Com­ terprises, such as the chemical industry and after the elections, when the vast ma­ mittee, a group not directly involved in leg­ oil-drilling equipment. islation. Bethlehem has bought into the plastics jority of us will be returning in a few "I can assure you I am in complete control industry. In addition, two major steel corpo­ weeks to take up the work of the 97th of my faculties in leaving the Banking Com­ rations, Youngstown Sheet and Tube and Congress, seems to me to be an inap­ mittee," Reuss said during a recent inteview.
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