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THE UNITED WAY INSIDEUSW@WORK Greetings: Tire Industry Contracts As International President of the , I am asking The USW and Michelin-owned BFGoodrich reach agree- your local union and membership to support the 2006 campaign for the 06 ment on a three-year contract that the union expects will United Way. Members of the American labor movement have always serve as a pattern in bargaining with Goodyear, worked to help our brothers, sisters and neighbors in times of need. The United Way is one of our longstanding partners in sharing this Bridgestone-Firestone and other tire makers. value, helping working families every day with access to vital resources and services. Through this partnership we make a difference. We are not only helping those who are lacking basic necessities today, but working on long-term solutions that address the root causes of our nation's social service needs. Auto Trade Deficit Exploding I urge you to support the 2006 United Way Campaign. In doing so, The U.S. trade deficit with China in automobiles and auto we can continue to build stronger communities and change lives. 10 parts is exploding with potentially devastating effects on Thank you for making your community a better place to live and American jobs and living standards. More than 175,000 work. USW members make auto parts. In solidarity,

Leo W. Gerard

International Executive Board Labor Day Rapid Response Leo W. Gerard Hundreds of USW members and activists go to International President symbolizes our 12 Washington to learn about pressing issues facing workers James D. English “determination to in this country and how to confront their legislators with Int’l. Secretary-Treasurer help from members back home. Thomas M. Conway achieve an economic Int’l. Vice President (Administration) freedom for the Fred Redmond average man which Int’l. Vice President (Human Affairs) will give his political Ken Neumann freedom reality. New Day for Kaiser Nat’l. Dir. for After a tumultuous lockout and bankruptcy reorganization, 18 Kaiser Aluminum has new management, a new relationship Richard LaCosse Int’l. Vice President ” with the USW and new stock, much of it held in trust to President Franklin D. Roosevelt, Gary Beevers benefit workers and retirees. Int’l. Vice President Fireside Chat Sept. 1936 James H. Dunn Associate Secretary-Treasurer Ron Hoover Exec. Vice President (R/PIC) ONTHECOVER Lewis Peacock Cover Photo by Steve Linsenmayer. Finished Tires Features: Vice President (Organizing) are stacked for shipping at the BFGoodrich plant Speaking Out 03 James K. Phillips, Jr. in Fort Wayne, Ind. Vice President at Large CAPITOL LETTERS 16 News Bytes 28 Directors Worker Economics 30 David R. McCall, District 1 Jon Geenen, District 2 Stephen Hunt, District 3 William J. Pienta, District 4 Communications Staff: Volume 01/No.4 Labor Day 2006 Michel Arsenault, District 5 Marco Trbovich, Assistant to the President/Communications Official publication of the United Steelworkers Wayne Fraser, District 6 Gary Hubbard, Director of Public Affairs, Washington, D.C. Direct Inquiries and articles for USW@Work to: Jim Robinson, District 7 Jim McKay, Editor Ernest R. “Billy” Thompson, District 8 United Steelworkers Aaron Hudson and Kenny Carlisle, Designers Communications Department Connie Entrekin, District 9 Lynne Baker, Kelly Barr, Jim Coleman, Deb Davidek, Gerald Dickey, Five Gateway Center John DeFazio, District 10 Joanne Powers, Wayne Ranick, Frank Romano , PA 15222 Robert Bratulich, District 11 Contributors: phone 412-562-2400 fax 412-562-2445 Terry L. Bonds, District 12 Holly Hart, Erin Schubert, Desiree Bartoe on-line: www.usw.org J.M. “Mickey” Breaux, District 13

Co-Directors USW@Work (ISSN 0883-3141) is published five times a year by the United Steelworkers AFL-CIO•CLC Five Gateway Center, Pittsburgh, PA Gerald P. Johnston, District 1 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, 3340 Perimeter Hill Drive, Nashville, TN 37211 Lloyd Walters, District 9 Kenneth O. Test Copyright 2006 by United Steelworkers, AFL-CIO•CLC. All rights reserved. No part of this publication may be reproduced without the written consent of the United Steelworkers.

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SpeakingSpeaking OutOut 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 PA 15222 or e-mail to [email protected]. Hung out to dry echo of the silence is deafening. It's my My husband hired-in at Continental personal view of Continental's decision Tire's plant in Mayfield, Ky. in 1977. He to move work once performed by At one time I read our wages were is one of the victims of the company's Americans to a foreign nation like the highest and health standards close to retrenchment. Brazil. the highest, and we ranked at or near the Only a handful of workers are left, Can anybody tell me if any runaway top in many other categories. I do know producing rubber. That allows manage- company has ever lowered prices on everyone was much more relaxed then ment to get by with calling it a layoff their products and passed that savings and optimistic about their future and the not a closure; therefore, he receives no on to the American consumer when they future of our country. shutdown benefits. cut their wage costs by going overseas? I am an associate member who joined My husband went back to school. But If $15 per hour versus $1 per hour at the age of 70. All my life I had been a after three semesters, the government computes to a savings of $14 per hour in white-collar worker who envied and decided his program was not a "job in wage costs, it would logically follow respected unions for the good they creat- need" so they refuse to pay for any more that the price of total production would ed for their workers and their country. of it through federal TRA funding. fall. So who benefits and who suffers? The associate member program is It's a joke if people out there think wonderful, and I hope it continues to Mark West, Local 850 grow. these guys received anything for all of Charlotte, N.C. the years they put in at Continental Peter Daniels General Tire. My husband has been ReUNION applauded Polson, Mont. hung out to dry and there is not a thing As a retired proud member of the we can do about it. United Steelworkers, I would like to What to buy? I believe what goes around comes take this opportunity to thank President I read with interest the article in around. Surely, those of higher rank who Leo W. Gerard and our international Volume 1/3 of USW@Work entitled are robbing employees of what they union for promoting the birth of the "Free Trade or Free to Enslave?" spent their whole lives working for will ReUNION project. Most of us are guilty of buying cloth- find themselves in the same boat one I now proudly serve as a ReUNION ing at Kohl's, Target, L.L. Bean, K-Mart, day. The sooner the better! coordinator in Maryland and I hear and JC Penney's, etc. Please tell me what brand of clothing supports American Rhonda Darnell see from many retirees who now realize workers, or at least does not contribute Mayfield, Ky. that they are not "forgotten Americans." Again, a great deal of thanks for the to the degradation of people in Third Tire machines go silent chance to promote this venture to the World Countries. There was a time when a person retirees of our great union. Where should I be shopping and could go to work right out of high what brand of clothing should I look Don Kellner for? school for a manufacturer and earn a Dundalk, Md. wage decent enough to support a family. This was the rule, rather than the excep- Editor's note: ReUNION, a joint pro- Shirley Adamczak tion. ject of the United Steelworkers and lead- Duluth, Minn. Now, it is nearly impossible to find a ing domestic steel companies, mobilizes Editor's note: It is, unfortunately, dif- manufacturing job with a fair wage and around the issues of health care, retiree ficult to find union-made clothes that adequate health care benefits. This income security and trade. If interested, support U.S. workers. But it is not downward trend is rooting out the mid- call toll free at (866) 365-2203 or write impossible. Check the web site of dle class in America. to ReUNION at 60 Boulevard of the UNITE HERE!, a union representing With more than 28 years of service at Allies, BSIC, 7th Floor, Pittsburgh, Pa. needle trades’ workers, for a directory of the Continental Tire plant in Charlotte, 15222. clothing brands under union contract. "good-bye-ey-ey-ey" is the echo that I Unions improve lives The directory is divided into categories personally hear. including athletic uniforms, belts, denim It has always been my belief that Tire machines and other machinery jeans, hats and caps, etc. when American union membership was that once made a raucous noise in a The site is www.unitehere.org. Click at its peak our standard of living was the vibrant facility are now silenced. The on Buy Union. highest in the world.

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or most of us, Labor Day means end-of-summer picnics, parades, Fspeeches, blow-out department store sales and a last dip in the swim- Whether the pendulum swings back grandchildren and their communities. ming pool before the start of another our way is an open question, the answer This is challenging work in the face school year. to which depends on us. of a Republican-led, right-wing agenda It's also a natural time to take stock of Politicians won't act unless they are bent on privatizing some of our most the labor movement and a working per- pushed to act, and they won't feel valued public assets and diminishing son's lot in life. Labor Day, after all, is pushed until we can muster a voter any meaningful government role in the one holiday that honors the everyday uprising, an uprising necessarily built on securing our well-being. worker rather than public figures or a much larger coalition than one made It is a challenge that demands sacri- events. up of labor stalwarts alone. fices of time and energy. So, we must Where do we stand, then, in the pur- ask ourselves what we, our families and suit of the American dream — the way neighbors are willing to sacrifice to of life that our parents and grandparents bring about the changes that we believe struggled over the years to build for us? must be made to redirect our country. Are you satisfied? Do we continue to sit on our hands Are you satisfied with the way — as many have — and remain compla- America is working and content with cent, comforting ourselves with our how the future is unfolding? Or are you hard-won contract gains, rightfully angry, steamed enough at the way things appalled by a political system marinat- are going to start fighting back? ing in money? If so, we may be at a tipping point. Or do we shake ourselves free of Washington isn't listening to working cynicism and get involved with the America. Big business and other power- union, the Rapid Response program, and ful interests are abandoning American the crucial election campaigns coming workers by using lousy trade deals to up this year and in 2008? send millions of good jobs overseas. These are questions many of us are We have become the world's biggest already trying to tackle. They're ques- debtor, thanks to an annual trade deficit tions that cry out for consideration, if we Building alliances hope to build the power necessary for that is approaching $800 billion. Our That's why the USW has launched an economy is being propped up by China changing the direction of this nation and associate member drive to recruit thou- restoring the progress toward economic and other foreign governments who are sands of Americans who share our val- buying our debt, our dollars and our and social security that are the founda- ues but do not belong to a union in their tion on which our union has been built. assets, putting our fate beyond our gov- workplace. And it's why the union has ernment's control. allied with the in a Blue Answering tough questions Corporations, with the help of politi- Green Alliance for good jobs, a clean How each of us answers these ques- cians and the bankruptcy courts, are environment and a world safe from tions will determine whether changes abandoning traditional values, chopping chemical hazards. It's also why we've are made in the direction the U.S. is health care benefits and breaking pen- led a dozen other unions into the Apollo heading, or whether jobs keep getting sion promises. Alliance for good union jobs in pursuit outsourced, health care costs will keep Change depends on us of energy independence. skyrocketing and our pensions will keep All the while, our members — like Each of these initiatives seeks to getting undermined. the rest of the middle class — are being galvanize a growing base of worker- As former president George Becker cooked in the soup of global trade, friendly coalitions committed to changes used to say, "Failure is not an option." record trade deficits, and the soaring that secure the future, not only for our As things have turned out, neither is sit- costs of fuel, drugs and health care. members, but for their children, their ting on our hands.

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ndy Volzkel became a USW USW has a concentration of members us but I think we're going in the right activist after he lost one job to and a chance at influencing the electoral direction,'' said Activist Corps member Alow-wage workers in Mexico results: Minnesota, Ohio, Steve Meyer, of Local 224 in Wausau, and was concerned that the same thing and Wisconsin. Wis. "I'm very positive about where we could happen again with a second Campaign captains are already in are." employer. place in those states and busy recruiting Letting the activists loose once the Still reeling from job loss at an elec- volunteers who are being asked to sign next election is over is something like trical products company, Volzkel was an Activist Corps pledge card. turning off a metal-making furnace cold stunned when a manager at the Harley- Once on board, the activists will be — rather than going to hot idle. It costs Davidson plant in Wisconsin, where he easy to spot. They will be issued dark more to reactivate later. now works, told him that outsourcing blue union shirts with USW Activist The union is looking for new work is always an option for the emblazoned in large type on the back. activists, people who are not already company. "It's very important that we get active officers of the union, or who are not involved in their region's central labor council. Training will be provided.

Energizing and important "When I try to get people involved I Activist Corps members meet tell them they don't have to put in a lot with Pennsylvania gubernatorial candidate Bob Casey. of time,'' said Volkzel, who recruits fel- If you want to be involved, low members of Local 2-209 at Harley- you may contact the Activist Davidson. "But the minute they start Corps at (412) 562-1990. working the streets, they come back for more." The work can be energizing. "It can be fun because we're from Harley-Davidson," Volkzel said. "People say 'wow, we're really glad to meet you.' It gets us on base." "That was the event that fueled me. I and involved to Despite the economic con- lost one job because of outsourcing and save our jobs,'' said ditions we see around us, it's I saw so many other people lose jobs," Mike Spoehr, a not always easy to convince Volzkel, 50, recalled. "I said, 'no more. paper worker with USW members to spend their free time I'm not going to take this any more.' " Local 2-1822 at Pacon volunteering as an activist. There are Today, Volzkel is recruiting would- Corp. in Appleton, Wis. "If we don't, often competing demands of job, over- be union activists in his local for a new things aren't going to change." time and family. pilot program — the Activist Corps — Jeff Welhouse, the USW Activist "It's a commitment,'' said Jerry that is being developed by the USW's Corps captain in Wisconsin, hopes to Laycak, a political action coordinator for political department in advance of the recruit 50 union activists like Volzkel, USW Local 1557 in Clairton, Pa. key election campaigns this year and in who is responsible for developing the "Every minute off work is precious." 2008. network in 173 USW locals in the state. Laycak and his assistant, Eric Reese, By mid-July, Welhouse had 38 people have responsibility for mobilizing mem- Year-round activism signed-up. bers at more than 250 work sites in eight The plan is to grow member activism western Pennsylvania counties around in the union by building a year-round Leafleting, door knocking Pittsburgh. network of volunteers who are willing to By fall, Welhouse expects to have "It's important that people learn the throw their energy into political mobi- upwards of 800 volunteers overall in truth,'' said Reese. "They think their lization, organizing, strategic campaigns Wisconsin engaged in political activity opinion and vote do not matter. But it and Building Power programs. including leafleting, door knocking, and does. Every little bit helps. Their The pilot project is targeting four key telephone banks. activism starts to snowball." election battleground states where the "We've got a big challenge in front of

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tire industry bargaining pattern Separate negotiations with Just as it did in the 2003 negotiations, worth fighting for was estab- Goodyear involve 14,000 workers at a the union showed it can be an innova- A lished with a three-year dozen plants. Bridgestone/Firestone tive partner with employers who engage BFGoodrich agreement that protects employs 6,000 USW members at eight in a fully informed and open dialogue retirees and secures jobs for active plants, six of which are covered by a workers. master agreement. BFGoodrich was the designated tar- get company in this year's round of tire Pattern established and rubber industry negotiations that The BFGoodrich settlement, also include U.S. competitors Goodyear reached July 25 three days after The pattern set at and Bridgestone/Firestone. the previous contract expired, BFGoodrich: was ratified in early August The deal with BFGoodrich, a unit Retains defined benefit pensions for by local members. It was of Michelin Group, covers 4,000 USW- current and future members represented workers at plants in Opelika accepted as a pattern by a and Tuscaloosa, Ala., and Fort Wayne, nine-member committee Retains health care coverage for current and Ind. of representatives from all future retirees three major companies. Preserves Cost of Living Adjustment gained in 1976 BFGoodrich employees in Tuscaloosa, Ala. check the Protects the wages of current members, while picket board at the union hall for assignments just putting in place wages for future members before a tentative agreement was reached. Tuscaloosa News photo by Michael E. Palmer that are above average by current industry standards Protects our plants from closure

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and acknowledge their substantial con- No plant closures vigorously attack the wages of all pro- tinuing obligations to our members, The guarantees include: duction employees, with the exception retirees and communities. • no plant closures during the life of of the technical maintenance crew. The union's negotiators ultimately the agreement; The settlement instead protects pre- resisted enormous economic conces- sent wages of all employees. A new • a pledge that production will not sions demanded by BFGoodrich and five-level wage structure and pay pro- drop below 90 percent of each plant's protected 11,500 retirees and surviving gression will be implemented for all ticket or tonnage as measured on July spouses from massive health care cost new employees hired into production 1; and shifting proposed by the company. and non-technical maintenance jobs. Other primary objectives were to • Special separation benefits offered save our jobs and ensure a future for to a maximum 435 employees who Retiree trust funded plants endangered by foreign imports choose to retire or leave the company. The Cost-of-Living Adjustment and a lack of capital investment — all Additionally, the company must (COLA) formula won through a 141-day goals established last October by the make minimum capital expenditures of strike in 1976 was unchanged. However, Rubber and Plastics Industry Conference $100 million to install equipment neces- the first dollar will be diverted to fund (R/PIC). sary to make higher-margin, larger-sized the BFG/USW Retiree Trust Fund. The tires at all of our plants. (Smaller size rest will be incorporated into the wage Guaranteed plant investment tires are most vulnerable to imports.) structure up until October, 2008, with The agreement includes minimum BFGoodrich's initial proposal was to the last four quarters of COLA paid to employment levels and guaranteed employees as a lump sum. investments in plants so our members The union was also able to negotiate can produce profitable larger-size tires PLANT LOCATIONS a large company cash infusion of $27 that are in demand today. million to the retiree trust fund. "We believe we achieved our indus- BFGoodrich/Michelin Negotiators fought off company pro- try goals when it comes to protecting Opelika, Ala. - Local 753 posals to eliminate guaranteed pension retiree health care benefits and securing Tuscaloosa, Ala. - Local 351 benefits and retiree health care for many additional job protection measures for Fort Wayne, Ind. - Local 715 of our existing employees as well as all our active members," said USW execu- new hires. tive vice President Ron Hoover, who BFS Initially, the company proposed a leads R/PIC. Akron, Ohio - Local 7 very modest pension increase for current “The purpose of pattern bargaining is Des Moines, Iowa - Local 310 employees with ten or more years of to place all the companies on a level Oklahoma City, Okla. - Local 998 service and no increase for employees playing field when it comes to contrac- LaVergne, Tenn. - Local 1055 with 10 or fewer years of service. tual terms,’’ said Hoover. “Competitive Noblesville, Ind. - Local 138 The union insisted that all current advantages should be gained through Russellville, Ark. - Local 884 employees continue to participate in the efficiencies and good management prac- Bloomington, Ill. - Local 787 defined benefit pension plan. Ultimately, tices. This compels employers to com- Warren County, Tenn. - Local 1155 the USW proposal was successful. pete on the basis of product and service Health care coverage for active work- quality, efficiencies, innovation, up-to- Goodyear ers was a tremendous challenge as well. date technology and management.” Akron, Ohio - Local 2 The company's initial proposal would The agreement designates all USW- Gadsden, Ala. - Local 12 have shifted almost $13 million in cost represented BFGoodrich plants in the Buffalo, N.Y. - Local 135 each year onto the backs of workers as "protected facilities," St. Marys, Ohio - Local 200 through drastic benefit cuts and which requires the company to enhance Lincoln, Neb. - Local 286 employee-paid premiums. job security during the agreement. Topeka, Kan. - Local 307 While some changes in benefits were This is a dramatic step toward secur- Tyler, Texas - Local 746 necessary, we were able to avoid the ing a long term future in a global econo- Danville, Va. - Local 831 imposition of premiums and maintain my where tire makers can shift invest- Marysville, Ohio - Local 843 coverage at the highest levels within the ment and production to China, Eastern Union City, Tenn. - Local 878 tire industry. Europe or anywhere else. Sun Prairie, Wis. - Local 904 Fayetteville, N.C. - Local 959 USW@Work • Labor Day Issue 2006 7 37696_P01_34.qxp 8/8/2006 11:18 AM Page 8

he National Labor Relations Board has confirmed USW in annual concessions. Despite multiple requests for documen- accusations that Continental Tire is a lawbreaker. tation, the company never did explain how it came up with the T In a complaint filed against the tire maker in July, the $32 million target. NLRB alleged Conti illegally moved tire production from its Without those savings, Continental initially threatened to USW-represented plant in Charlotte, N.C. to Mexico, Brazil cease tire production in September. But after it unilaterally and a non-union plant in Mount Vernon, Ill., where wages and implemented the savings it sought when the contract expired, benefits had been unilaterally cut by management. Continental accelerated the Charlotte closing. The company illegally refused to provide necessary infor- mation requested by the USW during negotiations and failed Union package rejected to examine all avenues to reach a settlement before unilaterally During negotiations, the USW submitted proposals that implementing its "last best and final offer," the complaint would have yielded an estimated $16 million through wage alleged. and health benefit concessions, increased production efficien- "It became increasingly obvious during negotiations that cies and cost controls on spiraling health care and prescription Conti didn't intend to bargain in earnest,'' USW executive vice drug costs. president Ron Hoover said. Even though our union believed the parties were making Continental failed and refused to bargain to impasse over progress in negotiations, the company short-circuited bargain- production curtailments and layoffs, which are mandatory sub- ing by wrongly claiming that talks had reached an impasse. jects of bargaining. It also prematurely declared impasse on The union maintained it still had ideas or proposals that might April 30 when the union's previous contract expired, and uni- bridge the gap. laterally implemented its final offer on May 1, the labor board "Our members do not view this as a victory," said USW said. Local 850 President Mark Cieslikowski. "A victory would be Layoffs took place in March, May and on July 7, when achieving a contract with long-term job security. We see these tire production was halted. A small number of workers remain charges as validation of our statements that the company pre- in rubber mixing, warehouse and maintenance operations, sented us with an unjustified 'take it or leave it' proposal." which allows the company to avoid paying pension and insur- ance obligations outlined in the previous contract's plant clo- Hearing set sure language. A hearing on the complaint is scheduled for Aug. 22 in Charlotte. Under NLRB procedures, the company has the right Concessions never justified to request a trial of the evidence against it. From the onset of talks this spring, Continental made clear If an administrative law judge rules against Continental, the it would accept only an agreement which provided $32 million company could be forced to pay employees back-wages and

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ontinental Tire (CTNA) has decided to he membership of USW Local 890 is making shut down its remaining operations at its plant in off-the-road tires in Bryan, Ohio, under a new four- Mayfield, Ky. The decision was not totally unexpected. T year labor agreement with a new owner — Titan C Tire. "It was obvious to us long ago that Continental decided to abandon U.S. production,'' said USW executive vice president Ratification of the agreement by over 80 percent Ron Hoover. "Their business strategies and management teams of the local's membership permitted Titan to complete never addressed the dynamics of this market and unlike other the purchase of the Bryan plant from Continental Tire successful companies, they refused to develop a collaborative North America. Titan took over on Aug. 1. relationship with us." Before reaching a deal with Titan, the local union The Mayfield plant once employed 2,400 workers when it had been in negotiations with two other potential buyers was owned by GenCorp. Operations in General Tire's U.S. of the plant — Rodos Giants LLC, the U.S. arm of the plants have gone steadily down hill since Continental AG of Rosler Group, and Pensler Capital Corp., the parent of Germany acquired the facilities almost 20 years ago. Denman Tire Corp. In December 2004, CTNA announced an indefinite suspen- "We believe Bryan is a good fit for the Titan busi- sion of tire production in Mayfield. The latest layoffs are ness model,'' said USW R/PIC executive vice president expected to begin around Oct. 1, 2006, with remaining opera- Ron Hoover. "We want to work with a company that tions being discontinued around Feb. 1, 2007. The final 107 understands the North American market and is commit- workers at Mayfield will be permanently laid off. ted to North American production." Successor clause The union was able to influence the outcome of Photo by Steve Linsenmayer the sale of the plant because a successor clause in its contract with Conti stated that a prospective buyer must benefits. Other potential remedies available include reinstating negotiate a new contract with the union before a sale of the laid-off workers and a resumption of production operations. plant could close. Continental's decision to abandon Charlotte ended what was "We're very pleased with the results,'' said unit chair often a family tradition at the plant. Sons followed their fathers into John Bowling. "This has been a long, grinding process and the plant. Marriages and life-long friendships were made there. we're glad it's over." As the case moves through the NLRB process, former tire- The union could not reach an agreement with either builders are making plans to switch careers. Rodos, which at one time had signed a letter of intent on "I'm not sure what I'm going to do,'' said Keith Passmore, who the sale with Continental, or with Pensler. worked at Continental for more than 25 years. His father worked at But the local was able to carve out an agreement with the same plant for 32 years Titan in a relatively short period of time, thanks in part to the experience the union had when Titan last year pur- American dream dashed chased Goodyear's farm tire business in Freeport, Ill. Teresa Helms signed up for Trade Adjustment Assistance, a fed- The agreement between Titan and Local 745L at erally funded retraining program for workers harmed by imports, Freeport included wage and benefit increases, maintenance and plans to attend a community college for training in mortuary of health care plans and language guaranteeing that prod- science. ucts sold by Titan must be manufactured in Freeport or at a "At this time, we should be getting ready for retirement,'' she sister plant in Des Moines, Iowa. said. "Now I'm 48 and entering a field that's a lot younger. It's not The deal in Freeport served as a template for the more impossible; it's not the American dream we had in mind." recent agreement with Titan in Bryan, where the USW The USW is planning a boycott and a consumer campaign to represents 257 of 312 employees. Steve Vanderheyden, further diminish the company's already dwindling U.S. market president of the Freeport local, worked closely with the share. Much of that fight may take place in California, where Bryan negotiating team. Continental plans a major advertising push. The USW will be there "The Freeport agreement made for smoother talks with to let consumers and dealers know that Continental is responsible Titan here in Bryan,'' Bowling said. for lost jobs, broken families and ruined retirement plans. The Bryan agreement included improved contract lan- The AFL-CIO executive council has agreed to President guage, general wage increases in each of the four years, Gerard's request that the federation support a multi-faceted cam- improved health care insurance, more secure pensions and paign to boycott Continental's products and expose its outrageous plant closure protection. behavior to consumers, dealers, manufacturers, elected officials "It's a good agreement," Bowling said. "We're happy and investors. that Titan is committed to building tires in the U.S. and particularly right here in Bryan, Ohio."

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A worker welds the interior of a car at the Greely auto factory in Ningbo, China. AP Photo/Eugene Hoshiko

he U.S. trade deficit with China in Sales inside China, however, are project- AFL-CIO Secretary-Treasurer Richard automobiles and auto parts is ed to be only 9 to 10 million vehicles. Trumka, called for a "coherent and inte- T exploding with potentially devas- "Excess capacity could thus reach 100 grated trade and industrial policy." tating effects on American jobs and percent in the next five years," Gerard Such a policy, he said, would not seek living standards. said, "exactly the sort of excess capacity to "protect one sector at the expense of The USW has more than 175,000 that led to dumping and the steel crisis at another, but (would) rather lay out a members who make products for the the turn of the century." framework of trade, tax, infrastructure, domestic auto industry, International If 10 percent of domestic production and R&D policies that will sustain a President Leo W. Gerard recently told is displaced by China, an estimated 1,750 vibrant domestic manufacturing sector." the U.S.-China Economic and Security USW-represented jobs could be lost, in Review Commission. In addition to steel addition to the negative impact on the Decisive action needed and aluminum, they include Auto Workers. Gerard joined Gettlefinger and who produce electronic and mechanical While a significant amount of steel is Trumka in calling on the Bush adminis- parts, rubber and tires, plastics, leather used in infrastructure, almost 80 percent tration to act decisively and and glass. of domestic production is consumed in swiftly on China's cur- Those jobs are threatened by the products that can be made elsewhere. rency manipulation Chinese government's plan to become and worker rights’ the world's largest automobile manufac- Off-shore challenge violations, each turer and a producer of its own brands of If steel's key customers including of which vehicles and parts for international mar- autos and white goods move offshore, kets by 2010 — a few years away. Gerard said, it will be much more chal- lenging to sell those customers domesti- Excess capacity threatens jobs cally-produced steel products. It is clear that China will not be able "As America's largest consumers of to consume all of its own automotive steel move their manufacturing else- production and that the United States where, the logic for a large domes- will be a key target for Chinese-built tic steel industry will exit the U.S. vehicles and parts. along with those customers,'' he Gerard told the commission that said. China's production capacity is expected Gerard, who testified to rapidly grow from 8 million vehicles along with UAW President last year to 18 to 20 million vehicles. Ron Gettelfinger and

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Bournes, a pipe mill worker who partici- pated in the original announcement of the petition filing in Washington. "The administration is more con- cerned about foreign countries than our own jobs and our own people. What's it going to take for President Bush to pull his head out of the sand?" The decision, made public in a brief Federal Register notice published July 21, turned down a request for action made in a petition filed the previous month by the AFL-CIO and two mem- bers of Congress, U.S. Reps. Chris Smith (R-N.J.) and Ben Cardin (D-Md.) The petition called on the Bush administration to take action under the Trade Act of 1974 to end the suppression of workers' rights in China and stop the flow of good U.S. jobs overseas. Filed under a provision of U.S. trade law known as Section 301, the petition contended that China was using child and forced labor in addition to firing, beating and imprisoning workers who he Bush administration has attempt to form unions. callously rejected a request by contribute to the competitive difficulties T the American labor move- Chinese wages suppressed facing the domestic industry. ment to investigate unfair Chinese labor Such practices kept the wages of The USW supports a UAW-endorsed practices that have contributed to the Chinese factory workers as low as 15 "Marshall Plan" for the auto industry to loss of millions of U.S. manufacturing cents to 50 cents per hour, providing an give U.S. workers and producers an edge jobs. incentive for American companies to over Chinese and other foreign suppliers. The decision to ignore the Chinese close factories in the United States and The plan would stimulate U.S. invest- government's systematic and brutal move production to China. ment and production of advanced tech- repression of workers' rights drew a Had the petition been upheld, it nology vehicles and their components. sharp rebuke from AFL-CIO Secretary- would have triggered a lengthy probe By supporting the development of an Treasurer , who called that could have resulted in U.S. trade advanced infrastructure, Gerard said the the rejection "a slap in the face to sanctions against China. plan would also improve fuel economy Chinese and American workers." In a statement announcing the rejec- and the environment. It would strengthen "It's a travesty that after five years of tion, the U.S. Trade Representative men- the nation's economic and failed trade policy that have contributed tioned numerous meetings, letters and national security by to the loss of almost three million U.S. money spent to address labor rights’ vio- reducing our depen- manufacturing jobs and a record trade lations in China over the past two years. dence on foreign oil. deficit of $726 billion, the administration But Trumka said there are very few continues to take no meaningful action concrete improvements that the adminis- to support America's workers or to stop tration can point to regarding Chinese the abuse of workers in China,'' Trumka workers, Chinese labor laws or even added. enforcement of those laws. "The enormous and lopsided bilateral Mistreatment condoned trade deficit continues to spiral upwards In failing to address the systematic — as do the lost jobs associated with abuse of China's workers by the Chinese that imbalance,'' he said. government and multinational corpora- The rejected petition had the support tions, the administration has effectively of 29 members of Congress and 11 turned its back on American workers Senators. In June alone, nearly 70,000 while condoning the mistreatment of letters from workers across the nation workers worldwide. were sent to the president and Congress "What's wrong with this country? '' urging them to take action to halt the asked USW Local 1016 member George abuse against workers in China.

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Activists Converge on Washington to Confront and Educate Congress About Issues Facing Workers ll the chairs and standing room in U.S. Rep. Tim and PACE created the nation's Ryan's Washington, D.C. office were occupied by largest industrial union with ASteelworkers when USW member Dan Seybert cleared 850,000 members. his throat and let the Congressman know what was on his Rapid Response, an educa- mind. tion, communication and "I'm not asking to be a millionaire. What I ask for is to put mobilization program built on gas in my car, to go to work every day, to earn a decent wage the energy and commitment of and health care coverage for my family,'' Seybert said as Ryan volunteer union members, has and dozens of his fellow USW members listened. been so successful it is now "But every day we lose jobs because of the (Bush) adminis- being emulated by other AFL- tration's trading policies," Seybert, of Niles, Ohio, added. "We CIO unions. better turn this around. We've got to play not to lose." The AFL-CIO's executive council this spring made Seybert was one of more than 800 USW members and a commitment to try to recreate the way Rapid activists who attended this summer's National Rapid Response Response works at dozens of other unions that belong conference in Washington, D.C. They learned about pressing to the labor federation. issues facing workers in this country and how to confront their legislators over those issues with help from members back home. AFL-CIO copies program The conference was the fifth since Rapid Response began "This is the hottest thing in the labor movement,'' operations in the 1996 election cycle and was the first since AFL-CIO organizing director Stuart Acuff said during the merger of the United Steelworkers the conference at the Marriott Wardman Park . "We need every union to do this." The (EFCA) is a good example of the member power that can be harnessed by the Rapid Response network.

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After the EFCA was introduced in the 108th Congress, Ohio, said the power of the Rapid Response program lies in Rapid Response activists wrote letters and made phone calls educating and informing members about issues that affect them encouraging members of Congress to show their support by and their livelihood. co-sponsoring the bill. That activism resulted in an unprece- "We don't have the luxury of sitting on the sidelines and dented number of co-sponsors on the Senate and House. doing nothing,'' said Prentice, the political coordinator and workers' compensation representative for Local 2L. Labor's most effective structure High on the union's legislative agenda is a bill that would "It's the most effective mobilization ban the export, import or sale of goods made by sweatshop structure in the labor movement," the labor, legislation that would reform the troubled health care AFL-CIO's Acuff said. "Not only are system and the Employee Free Choice Act, which is designed they working on local issues, to reform the one-sided election process overseen by the they're working on major nation- National Labor Relations Board. al issues, engaging policy makers directly and making Go out and vote things happen. You recreate "It's important for people to be involved, to go out and vote, that across the 53 affiliates of to talk to their member of Congress," said Thomas Harris, the AFL-CIO and you've got president of 450-member Local 7495 at Ball Corp., a can and a real army that can change aerospace products manufacturer in Elgin, Ill. things." "If you don't vote, you're conceding your rights, conceding Urged on by USW your opportunity to voice an opinion,'' Harris added. "We're President Leo W. Gerard, losing too many jobs overseas. We have no national health Secretary-Treasurer Jim English, care plan and we're supposed to be the number one developed Barbara L.Chavez, who heads the Rapid Response nation in the world. It's absurd." USW Local 8599 effort, the union's retiring legislative The conference opened with moving presentations on glob- director Bill Klinefelter and others, the alization from Charles Kernaghan, director of the National activists descended on Congress armed with Labor Committee, and Lori Wallach, from Global Trade data and worksheets on important legislative issues Watch. including failed U.S. trade policies, an out-of-control health Delegates were also presented with an overview of legisla- care system and the right of workers to form and join unions. tion to stop sweatshop goods from being imported into the But before they departed for Capitol Hill, delegates took a United States, as well as presentations on the EFCA and the moment to celebrate a win. In June, labor and congressional health care crisis. pressure forced the Bush administration Energy Department to The conference ended with a day of “nuts and bolts” work- at least temporarily reverse its decision to abolish traditional shops on how to build Rapid Response networks at the local defined benefit pensions for nuclear site cleanup workers rep- level. Delegates left Washington brimming with energy and resented by the USW. enthusiasm. "This victory is another example of the power of an educat- "I was very excited,'' said Beth Faretta, a Rapid Response ed and involved membership. These are real life issues," said volunteer with Local 2-268 in Port Edwards, Wis., where she Tim Waters, director of Rapid Response. works for a specialty paper manufacturer. "I know this sounds corny, but I was very proud to be a Bush attitude shows union member and a Still, Klinefelter said, the rul- Steelworker this week." ing showed the Bush adminis- tration's negative attitude towards workers, their pay and pensions. "They weave and weave their threads" against workers, he warned, noting that a lasting solution to that political weaving is the election of a pro-worker president. Pounding the pavement between legislative offices, USW Mark Wurtzbacher, activist David Prentice, of Akron, USW Local 14200 USW@Work • Labor Day Issue 2006 13 37696_P01_34X.qxp 8/10/2006 4:16 PM Page 14

USW Local 1899 member Kathy Loepker encourages fellow union members at U.S. Steel's Granite City Works to sign the Employee Free Choice Act petition as part of Rapid Response efforts to restore the right to form a union in the United States. Photo by Dennis Barker

t takes hustle and an organized system pocket planner he carries with him and local union leaders who are separated for Mike McKenzie and his Rapid pulls out a photograph of a girls' basket- from the members. I use my whole exec- IResponse team to keep the Info Alerts ball team that he coaches. utive committee," Snyder said. "It keeps and Action Calls flowing to members "I carry this picture with me when I'm them accountable to the people." working at a 2,200-employee tire factory. out on the road, working 16 hour days Tonya Devore uses a constantly "It's kind of overwhelming at times and driving from here to there. It changing database of flex-shift employ- because people are moving from depart- reminds me of why I do this,'' he said. ees as the heart of the Rapid Response ment to department, shift to shift," said "We don't want to leave this generation program at the Checker Motors Co., an McKenzie, the Rapid Response coordi- less well-off than we were." automotive parts supplier in Kalamazoo, nator for Local 878L, at the Goodyear McKenzie wants his children and the Mich. Tire and Rubber plant in Union City, kids that he coaches to be able to have Tenn. "But we've made the system work decent jobs when they grow up, close and kept it working." enough to home where they can enjoy The Union City Rapid Response team and have the support of extended fami- is consistently one of the union's top pro- ly. ducers in terms of the number of letters "Don't tell me there is nothing we and telephone calls generated to influ- can do,'' McKenzie said. "Don't say our ence legislators on issues of importance hands are tied because they're not. I'm to workers. going to argue, I'm going to talk and When the information on a particular I'm going to raise hell all the piece of legislation or a request for way down the road until some- action comes from Rapid Response body listens." headquarters in Pittsburgh, Local 878L volunteers fan out through the plant. Executive board delivers "We use a network of people through Mike Snyder, president of the plant. It's a funnel or pyramid effect," USW Local 15173 in Decatur, McKenzie said. "It can be hectic. You Ind., has tapped his executive board to have to stay on top of it." personally distribute Rapid Response When Action Calls arrive, Devore When asked why he spends countless information throughout a Bunge North attaches member names and their current hours on Rapid Response and local polit- America soybean processing facility that locations in the factory to copies that are ical activism, McKenzie opens up a covers 123 acres. individually distributed by team leaders. "So many times, it seems, you have 14 Labor Day Issue 2006 • USW@Work 37696_P01_34X.qxp 8/10/2006 4:16 PM Page 15

Because of flextime, the list changes con- stantly. "I have all of our members in the database and when we get information or an Action Call, I go in and plug in where en. Ted Kennedy (D-Mass.) and began the fight in Congress to honor his everybody is working, print it up, cut U.S. Rep. John Conyers (D-Mich.) memory and kept at it until Martin them out, staple and distribute. It works Sare this year's winners of the Luther King Day became a national hol- well." union's prestigious Wellstone Awards. iday in 1983. He is currently promoting There's a “no throw away” rule at The awards honor the late U.S. Sen. a single-payer health care program, Checker's lunch tables. Leave the infor- Paul Wellstone of Minnesota, a tireless which may take equal persistence. mation lie for the next guy who might supporter of the United Steelworkers "Wanting a better way for uninsured have time to read during scheduled and an advocate who advanced labor Americans, John has stayed true to the breaks, if a machine is down or during and human rights. Wellstone, his wife, fight for single-payer health care — a other idle moments on the job. daughter and three campaign aides were health-care program that will cover all "My local is pretty active politically,'' killed in a plane crash prior to the elec- Americans. He has carried this fight said Devore. "They watch and they do tion in 2002. when it seemed hopeless to many," listen." International President Leo W. Gerard said. Dow Chemical worker Michelle Gerard presented the award to Conyers Thurston is seeking volunteers to help her during a summer rally in Washington Right then, right now rebuild a Rapid Response committee at D.C. sponsored "But Congressman Conyers, you amalgamated Local 12075, which has were right then, you are right now," about 1,800 members in 13 different Gerard said, "and you'll be right the day units. the United States Congress passes sin- New on the job, Thurston quickly dis- gle-payer health care." covered that individual contact with Kennedy, who entered the Senate in members is more effective than relying 1962, was feted as the "number one solely on faxes that often sit in a pile champion of the American labor move- unread. ment and the standard-bearer" for the "It builds a stronger network,'' progressive movement. He is the rank- Thurston said. "When you build a ing minority member on the Senate stronger network, you have a stronger Health, Education and Labor committee. union. You can quickly get things done." "Senator Kennedy has sailed a

Photo by Page One/Kaveh Sardari straight and true course, often against Grassroots work the wind,'' Gerard said. "The poor have Buril Smith uses e-mail to inform and no greater champion..." motivate 400 members of USW Local by the union's Rapid Response network. After the first President George Bush 9231 at the Mittal Steel plant where he Gerard made a separate presentation to vetoed the Family and Medical Leave works in New Carlisle, Ind. Kennedy, who was leading a floor Act, Senator Kennedy reintroduced it in Smith can, for example, alert members debate that day on raising the federal the next Congress and it was the first when a Congressional vote is coming up minimum wage. bill signed by President Clinton. on a particular day, and ask them to "From the minimum wage to the quickly telephone their elected represen- Tireless champion of workers right to organize, and from health care to tatives to try and influence the outcome. Both of this year's winners emulate pension rights," Gerard said, "Senator "It's grassroots work,'' Smith said. "A Wellstone's commitment to labor. Kennedy can always be found leading lot of union members don't understand all Wellstone was a tireless champion of the fight to defend and promote a stan- they need to know and part of my job is raising the minimum wage and strength- dard of government that believes its role making sure they are as informed as pos- ening workplace safety laws. He was is to make the lives of people better." sible. And the more they get involved, the one of the strongest voices in the Senate easier it is to get the word around." arguing against trade agreements that The constant flow of Rapid Response traded away our jobs. information makes it unnecessary for Elected in 1964, Conyers is the sec- local leadership to lecture members on ond most senior member of the House how they should vote on election day, he and one of its most outspoken liberal said. voices. He holds the Ranking Minority Photo by Page One/Bill Burke "You no longer have to lecture by position on the House Judiciary party,'' added Paul Rausch of Local 9231. Committee and is the founder of the "You can talk about voting records influential Congressional Black Caucus. against pieces of legislation that members Conyers has a reputation for being are very familiar with. They reach their persistent. When Dr. Martin Luther King own conclusion rather quickly." was assassinated in 1968, Conyers

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CAPITOLCAPITOL LETTERS LETTERS The inside scoop on what's going down in D.C.

tip-earners and mandate the lower feder- for enforcing minimum wage, overtime, al wage rate of $2.13 for tip-earners. and equal pay laws. Mr. DeCamp's qual- ifications? He was formerly counsel for Pension Act to Senate Wal-Mart and has a large body of pub- In other late-night legislating right lished works criticizing the Family and before the House adjourned, Republican Medical Leave Act and overtime rights. he centerpiece of the Democrats' leaders abandoned five months of nego- pre-election economic message — tiations between House and Senate pen- Stranger than Fiction that it's time for minimum wage sion conferees and brought pension Mind boggling is the best description T overhaul to the House floor as a new of the Bush administration fight for for- workers to get a raise — has proved so effective that a large group of moderate bill. eign interests' rights to manage our Republicans refused to let the House H.R. 4, the Pension Protection Act of nation's port operations. It was not until adjourn at the end of July unless a vote 2006, passed the House by 279-131 and public outrage caused the House and was taken to raise the minimum wage. is almost identical to the pension bill Senate to prohibit the deal that the Bush Republican leaders, however, offered a House and Senate negotiators were plan- administration scraped efforts to let a minimum wage increase that actually ning to bring to the floor. But the House state-run company in the United Arab will decrease the earnings of many mini- dropped tax break extensions that the Emirates (UAE) run major U.S. ports. mum wage workers while giving a Senate had demanded. Almost immediately after the Dubai massive tax break to the richest families. H.R. 4 is a very bad bill for the future Ports World deal fell through, the Bush of traditional single employer defined administration began working on a simi- New Heights of Chicanery benefit plans. At a time when defined lar, less publicized deal involving for- The federal minimum wage has benefit pension plans are being frozen eign control of U.S. airlines. The Bush remained at $5.15 per hour since 1997. by healthy companies and terminated by administration has long sought to allow Yet over that same period of time, the companies in bankruptcy, the proposed foreign companies to control U.S. air- salaries of members of Congress have bill does little to stop the erosion of lines, saying domestic airlines need the increased eight times, with raises total- retirement security. The benefit restric- foreign capital to survive. ing $31,600. In contrast, the minimum tion provisions of the bill are particularly The House and Senate have moved to wage bill that passed the House and is severe and virtually eliminate, for exam- stop the U.S. Department of Transporta- now before the Senate, raises the mini- ple, shutdown benefit protections. tion from implementing this new rule, mum wage to a piddling $7.25 per hour recognizing that the proposal jeopardizes over the next three years and extends for Keeping Foxes Out our national security, is not good for the two years a host of expiring tax cuts for The USW and other unions won a U.S. aviation industry and would threat- individuals and businesses. significant victory when Senate en the jobs and rights of thousands of The biggest sweetener in this package Democrats blocked the nomination of workers. Unbelievably, the administra- for Republicans is a reduction in the Richard Stickler to direct the Mine tion may still allow this regulation to estate tax that will gradually raise the Safety and Health Administration take effect during Congressional recess. size of the multi-million dollar estates (MSHA). Stickler is a career mining that are excluded from the current estate company executive who, in his most Voting Rights Extended tax. This millionaire tax cut is indexed recent stint as the Director of the The only bipartisan bright spot is the for inflation so that heirs of the rich will Pennsylvania Bureau of Deep Mine 25-year extension of three key provi- never have to ask Congress to increase Safety, repeatedly attempted to limit reg- sions of the Voting Rights Act (VRA), the size of their exemption. It will auto- ulations and reduce health and safety which were signed into law by President matically grow. protections for miners. But don't count Bush on July 27. They require certain Worse yet is a decrease in earnings your chickens too quickly. President states and counties to get federal for people who depend on tips for a liv- Bush has put him to work at the approval before changing election laws ing. Waiters, waitresses, bellhops, hotel Department of Labor serving as an and procedures, guarantee that citizens housekeepers and parking lot attendants adviser on mine safety issues. who need language assistance are not working in Alaska, California, Oregon, The next Bush nominee to take center denied access to voting; and give the Minnesota, Montana, Nevada and stage is Paul DeCamp, who has been U.S. Attorney General the power to send Washington state will all get a pay cut nominated to oversee the Wage and federal examiners and observers to mon- since the Republican bill will pre-empt Hour Division of the Department of itor elections. more generous state minimum wages for Labor (DOL), the division responsible

16 Labor Day Issue 2006 • USW@Work 37696_P01_34.qxp 8/8/2006 11:18 AM Page 17 RestoringRestoring OrmetOrmet Strike Ends, Electricity Deal Needed for Restart SW-represented workers at the The agreement terms include a sign- that's finalized, there won't be a lot of aluminum maker Ormet Corp. ing bonus, wage increases, profit sharing action." voted to accept a new contract and guaranteed funding for retiree bene- Ormet emerged from bankruptcy pro- Uand end a long strike, but their return to fits through a VEBA, or Voluntary tection last year with a new management work depends on electric power costs. Employee Beneficiary Association. team and a new major shareholder, At press time, Ormet was in negotia- The union also negotiated hiring pref- MatlinPatterson Asset Management, a tions with the Public Utility Commission erence for several hundred workers in based firm. The former chief (PUC) of Ohio and American Electric Local 5760 who were laid off when executive officer, Mike Williams, left and Power (AEP) for affordable electric rates Wheeling, W.Va. -based Ormet sold its was replaced by Ken Campbell. needed to run Ormet's smelter in rolling mill in Hannibal to Aleris McCall said the settlements would not Hannibal, Ohio. International Inc., which removed equip- have been possible without the support Without a favorable energy contract, ment from the facility. of MatlinPatterson. the reorganized company is reluctant to USW District 1 Director David spend the estimated $120 million it will McCall praised the solidarity that was CEO replaced take to restart production. "After the replacement of the former "The overwhelming majority of our CEO and good faith discussions between members recognize that this is a good the Steelworkers and MatlinPatterson, deal. They want to get back to work, we agreed that the best possible but we need a power deal now solution would be to reach an more than ever,'' said Mark acceptable labor agreement Shaw, District 1 contract that puts our members back Striking steelworkers Sam Howard, left, to work, while allowing coordinator. Danny Highley, second from left, Pat "It really comes down Henderson and Dean Yocum, right, picket Ormet to remain a viable to whether AEP will sup- outside the Ormet Steel plant Wednesday, player in the aluminum Dec. 1, 2004 in Hannibal, Ohio. industry,'' McCall said. ply Ormet with electric- AP Photo/Robert Caplin ity at a reasonable "This agreement cost," Shaw added. will achieve that "Absent that deal, this goal,'' he added. "Our plant, unfortunately, members and their will never start back families have fought up." long and hard to reach this point, and we will Contracts voided continue our fight to About 1,500 USW save as many of our members in Hannibal jobs as possible." struck in 2004 when a Campbell, the Ormet bankruptcy court judge CEO, praised the union's allowed the company to void "constructive approach" to its labor contracts. The strike was the negotiations and said both 19 months old when tentative labor sides made a commitment to do agreements were announced June 30. business in a different way. In addition to the Hannibal smelter, "Because of their attitude, I believe the agreements also cover nearly 200 the odds of getting the reduction plant up members of USW Local 14465 at a demonstrated by all three USW locals and operational look very good,'' refinery in Burnside, La., who had been throughout the strike and the bankruptcy Campbell said. "We have a long history working under terms of an agreement process. He said the USW is supporting of less-than-ideal relations between the that expired last September. Ormet's new management in its bid for a labor force and management that we are In July, members of Local 5724 in reduced-cost energy supply. determined to change. I think this change Hannibal voted 551 to 79 to accept their "We're finally optimistic,'' said Mark will be difficult but critical, and I am per- agreement. The Burnside agreement was Goddard, a 30-year veteran employee of sonally committed to make it happen." approved by a vote of 103 to 12 with Ormet in Hannibal. "But it's still based expiration in 2007. on getting that power agreement. Until

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fter a tumultuous lockout and the new stock in the reorganized compa- many ways defined the current fight bankruptcy reorganization, ny, approximately 11.4 million shares, against globalization and brought AKaiser Aluminum has new man- has gone to a Voluntary Employee together labor and environmental move- agement, a new relationship with the Beneficiary Association (VEBA) set up ments that had once frequently clashed. United Steelworkers and new stock, to defray the cost of medical benefits for Charles Hurwitz, an infamous junk much of it held in trust to benefit work- USW retirees who lost coverage under bond king, was ousted as the company's ers and retirees. the bankruptcy. chairman, freeing Kaiser from a destruc- The newly reorganized company, A smaller VEBA for salaried tive leveraged buyout management pared down in bankruptcy to focus on employees received approximately 2 style. International operations were sold. fabricated aluminum products, emerged million shares. Both of the VEBAs were The union gained four out of ten seats from court protection in July, established in 2004. on Kaiser's board. ending a brutal saga that "I don't know if there is any other "Good came out of it. We drove included a 22-month labor case where retirees have gotten so much Hurwitz out of the company,'' said Dave dispute and lockout that equity out of a reorganized company,'' Foster, a retired USW district director hurt 2,900 USW fami- said Thomas Duzak, director of pensions who chaired negotiations with Kaiser lies. The lockout was and benefits for the USW. during the lockout. "Now the Kaiser the longest in the board is clearly focused on surviving as union's history. Bankruptcy dilutes payout a North American company." A majority The bankruptcy reorganization Kaiser steelworkers were the "labor 57 percent of allowed Kaiser to shed operations and movement's shock troops" at World eliminate or reduce asbestos-related lia- Trade Organization (WTO) protests in bilities and pension and retiree health Seattle "that opened the eyes of the care obligations. world to the linkage between trade and Approximately 250,000 shares were social issues," Foster recalled. also set aside to compensate workers who had been illegally locked out of Common ground their jobs by Kaiser during the labor dis- There is also the lasting impact of an pute. Their eventual payout, however, unusual working relationship forged was greatly diluted in bankruptcy court. between Steelworkers and environmen- There are other not so obvious lega- talists who were protesting the clear cut- cies of the long fight between Kaiser ting of some of the and the USW, which began in 1998 and nation's largest remain- involved workers at five plants, one ing stands of old each in Tacoma, Wash., Gramercy, La., growth redwoods by and Newark, Ohio; and two in the Hurwitz's holding Spokane, Wash. area. company, Maxxam The pivotal labor dispute in Inc.

Members of the United Steelworkers union, Local 338, shout at bus loads of tempo- rary workers entering Kaiser Aluminum Corp.'s Trentwood plant in Spokane, Wash. on Oct. 1, 1998. AP Photo/Jeff T. Green

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The two unlikely partners first resolve creditor claims filed by the USW on found common ground fighting What is a VEBA? behalf of affected retirees. In other cases, Maxxam, which prior to the Kaiser Trust funds can help replace benefits trusts now sponsor replacement benefit fight had engineered a hostile lost in bankruptcies or litigation plans for not only past retirees, but for takeover of the Pacific Lumber Co., future retirees as well. the redwood owner. oluntary Employees' Beneficiary The USW has also negotiated unprece- Foster recalls leading a group of Associations, or VEBAs, are tax- dented commitments from purchasers of Steelworkers on a 45-minute climb V exempt trust funds dedicated to bankrupt companies to establish VEBA through rugged Humbolt County financing worker and retiree health benefits. trusts to cover the selling company's past terrain in California to reach the site A VEBA is basically a funding device retirees. of Julia (Butterfly) Hill's famous that can be used to support traditional col- protest. Hill lived alone atop an lectively bargained retiree programs or to Mittal the largest endangered 1,000-year old redwood fund limited replacement benefits in cases The best and largest example of that is tree for 783 days. where bankruptcy or litigation have ended the VEBA established in 2002 with The Alliance for other plans. International Steel Group (ISG), which has Sustainable Jobs The USW has reaffirmed its long-standing since been acquired by Mittal Steel USA. and the policy preference for traditional employer- That trust fund has received more than $300 Environment provided health plans but has negotiated million in contributions which are used to was born that VEBAs in a variety of circumstances includ- offer prescription drug coverage to approxi- weekend at a ing litigation settlements, bankruptcy reorga- mately 75,000 beneficiaries — who used to daylong strate- nizations and corporate liquidations. work for LTV Steel, Bethlehem Steel, Georgetown Steel and Acme Metals. gy session of Steel VEBAs were first environmental The Mittal VEBA recently announced The earliest VEBAs, called "back-up" that a portion of the trust assets will also be organizations VEBAs, were first negotiated in the early and steelworkers used this year to reimburse eligible benefi- 1990's to help fund retiree health plans in ciaries and spouses for part of their 2006 in Eureka, Calif. the basic steel industry. "The Kaiser steel- Medicare Part B monthly premiums. Still other VEBAs were created follow- Eligible members were notified by mail in workers will long be remembered ing settlement of USW lawsuits against for their progressive and far-reach- late June and have until Aug. 31 to apply for companies, including Colt Industries and the benefit. For information, call the Mittal ing alliance with environmentalists Pirelli Tire, who attempted to unilaterally around the country," Foster said. ISG VEBA at (877) 474-8322. reduce or terminate retiree benefits. "The creation of this new benefit,'' said Successful boycott More VEBAs were established during USW President Leo W. Gerard, "is further The dispute at Kaiser started in the recent steel crisis when many retiree proof that the union has never given up the 1998. On Jan. 13, 1999, 3½ months benefit plans were terminated as a result of fight for the rights of our retirees, despite into a strike, the USW made an corporate failures or bankruptcy reorganiza- the fact that they've been abandoned by their unconditional offer to have its mem- tions. former employers and given cruel, short bers return to work under the terms In some cases VEBAs were created to shrift by the bankruptcy courts." of the old agreement. The next day, Kaiser declined the union's offer and in Oakland, Calif., charged Kaiser with our quest for full justice, but we kept imposed the lockout. illegally locking out the union, unlawful- slugging." The union responded by escalating a ly discriminating against employees to In reality, workers, their families and corporate campaign that involved, discourage membership in the union, and communities can never fully be repaid among other things, demonstrations at failing to bargain in good faith. financially for the damage done by shareholder meetings, a customer aware- A return-to-work was announced on Kaiser, which hired temporary replace- ness campaign and a union-sponsored Sept. 18, 2000, after an arbitrator settled ment workers during the long labor dis- environmental and safety audit. a handful of issues that the union and pute and closed or sold plants. During the labor dispute, the USW company were unable to resolve. Irv Schleufer, a welder at the Spokane Trentwood plant, spent two years during called for the boycott of Kaiser products Back pay claim and successfully won commitments from the lockout giving speeches and attend- The NLRB charges eventually led to Pepsi Bottling Group, Coca-Cola ing labor protests, including a WTO a $175 million claim in bankruptcy court Enterprises, Anheuser-Busch, Dawes meeting in Seattle. for back pay. The resulting settlement Better Built, Crown Cork & Seal and Even though years have passed, was much lower since all of the unse- D-Z Metals to discontinue their purchase Schleufer can't shake the memories of cured claims were pro-rated by the court. of Kaiser metal. At the port of Tacoma, scabs being brought into his plant by the "To me, the story is we do fight to the USW pickets delayed the unloading of busloads and co-workers struggling finish,'' said USW general counsel Paul Kaiser's alumina shipments. without a regular paycheck and health Whitehead. "They thought they had A tentative contract settlement was care coverage. totally checkmated us with the bankrupt- finally announced on June 30, 2000. On "I'm almost in tears thinking it is cy filing. That was a significant blow to the same day, the NLRB's regional office finally over,'' he said. USW@Work • Labor Day Issue 2006 19 37696_P01_34.qxp 8/8/2006 11:18 AM Page 20

These decisions “ will have a profound impact on the potential

of workers to

join a union and will affect “ workers in every industry.

20 Labor Day Issue 2006 • USW@Work Photo by Kenny Carlisle, USW 37696_P01_34.qxp 8/8/2006 11:19 AM Page 21

Union Rights of Millions of Workers at Stake in Labor Board Cases orkers turned out by the thousands in rallies across status of nurses at Oakwood Healthcare Inc. in Taylor, Mich. the country to demand that the National Labor and Golden Crest Healthcare Center in Hibbing, Minn. W Relations Board (NLRB) not roll back workplace A third case involves production and maintenance employ- rights by expanding the definition of supervisors. ees, including leadmen and load supervisors, at Croft Metals Organized labor is bracing for a series of legal decisions Inc., based in McComb, Miss. from the NLRB known as the Kentucky River cases that could restrict union representation for a significant number of work- May affect millions ers in a wide variety of industries and occupations. The potential impact of the NLRB goes far beyond health “In reality, these decisions will have a profound impact on care. Hundreds of thousands of existing union members could the potential of workers to join a union and will affect workers be stripped of their contract protections. Many more could be in every industry,’’ USW international vice president Fred denied the right to form unions or engage in collective bargain- Redmond told hundreds of labor sympathizers who packed the ing, according to the Washington-based Economic Policy lobby of the USW headquarters building in Pittsburgh. Institute (EPI). In addition to Pennsylvania, rallies were held in Arizona, California, Connecticut, the District of Columbia, Florida, Illinois, Iowa, Maine, Massachusetts, New Jersey, New Mexico, New York, Oregon, Tennessee, Washington and Wisconsin.

Public hearings denied At all of the rallies speakers called for public hearings on the Kentucky River cases, which the board will use to help define when nurses and other workers qualify as supervisors. The Bush-appointed board has denied union requests for hearings. “This is all about politics, all about the right-wing agenda,’’ said USW President Leo W. Gerard. “It is about this adminis- tration wanting to de-unionize America.” The board will use the trio of Kentucky River cases, one of which involves the USW, to help define when nurses and other workers qualify as supervisors. Supervisors do not have the protected rights under the National Labor Relations Act to form and join unions and employers often try to classify workers as supervisors in order to deny them the right to union representation. Under the Taft-Hartley Act of 1947, employees are classi- fied as supervisors if they use “independent judgment” and have the authority to “hire, transfer, suspend, layoff, recall, pro- mote, discharge, assign, reward or discipline other employees.”

New definition required The NLRB is required to come up with a new definition of supervisors because of a 2001 Supreme Court decision that found the board’s analysis of the supervisory status of six RNs at a Kentucky nursing home was flawed. Two of the cases before the board involve the supervisory Photo by Kenny Carlisle, USW

(Left to right) USW activists Kay McCormick and Carol Corse march to the Nashville NLRB office to voice their support for worker rights.

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The EPI examined dozens of cases pending before the Photo by Erin Schubert board and examined the supervisory duties of the U.S. work force overall in concluding that 1.4 million employees could be affected in just the pending cases. But as those decisions ripple across all occupations, EPI estimates as many as 8 mil- lion U.S. workers could lose their right to have a say in their working conditions. A negative decision could affect building trades’ workers, media employees, port workers and many other occupations where line workers are given some authority to give instruc- tions to other workers, said AFL-CIO organizing director Stuart Acuff. “Team leaders and gang leaders in ports, lead men in mines, lead men in docks at manufacturing facilities and warehouses, engineers, people who oversee apprentices in trades – almost every senior worker does this to some extent,’’Acuff added.

Business supports change The U.S. Chamber of Commerce and the American Hospital Association have filed briefs with the NLRB that sup- port a broadened definition of supervisor. In its brief, the hospital association said classifying charge nurses as management is necessary to their duties and reflects If I had to choose between my

an education and experience that equip him or her to assume a “

management function. union and my ability to be a If the NLRB determines that charge nurses and other union leader, I’ll choose my union,”“ members are supervisors, labor unions could encourage mem- bers to abandon supervisory responsibilities. Gerard said. “We’ll turn every workplace into chaos.

Nurses Rally for Workers’ Rights and Improved Patient Care eligious and labor leaders joined USW-represented regis- tered nurses for a candlelight vigil June 26 at Robert Wood R Johnson University Hospital in New Brunswick, N.J. As part of contract bargaining, the nurses sought and won lan- guage to protect them from an expected move by the National Labor Relations Board (NLRB) to expand the legal definition of supervisors. Under federal labor law, supervisors are barred from forming joining unions. A decision in favor of employers in three cases known collec- tively as “Kentucky River” could further erode workers’ freedom and affect hundreds of thousands of nurses, building trades work- ers and media employees. At press time, negotiations were continuing for a new contract at Robert Wood Johnson, where 1,260 nurses belong to USW Local 4-200. In addition to advancing wages and benefits, the nurses were seeking patient advocacy rights, protection against hospital vio- lence and improved patient care.

Photo by George Olivar

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Gary Beevers John M. (Mickey) Breaux ormer USW District 13 director make our union even stronger," he said. served Local 13-423 as its recording sec- Gary Beevers is a new international "I want to use our new strength to build retary, health and safety committeeman, Fvice president in charge of the better working conditions." workers' committeeman and full-time union's National Oil Bargaining pro- chair of the workers' committee. gram. A common heritage In 1987, OCAW President Joseph Beevers, 53, was chosen by the inter- Both Beevers and Breaux are from Misbrener appointed him to be an inter- national executive board to succeed Port Arthur, Texas and are members of national representative covering workers USW administrative vice president Jim Local 13-423. Their fathers had both in the oil, chemical and paper industries Pannell, who retired on July 1. worked at Texaco, now Shell Motiva, as well the public sector. After the John M. (Mickey) Breaux, 60, a for- and had belonged to 13-423's predeces- OCAW-UPIU merger to form PACE, mer USW District 13 international repre- sor, OCAW Local 4-23. Beevers was elected in 2003 to be vice sentative, was named director of District Beevers' father helped him get his president and regional director of PACE 13, a 50,000-member region that covers first job at Texaco in 1971. Region Six, which covered New Mexico, Texas, Louisiana, Oklahoma and "He taught me union principles,'' Louisiana, Mississippi and Texas. Arkansas. Beevers said. "You serve your union; Following the PACE-USW merger, he "These are good appointments for the you don't cross a picket line; you attend became the District 13 director. membership," said President Leo W. meetings; if you're not going to get Gerard. "Both men have fought hard on active, you support your elected leaders. Active in locals behalf of working people, and are able That's how I patterned my career." Breaux joined OCAW Local 4-23 in and willing to take on any challenge For Beevers, there was a natural 1969 when he began work at Atlantic thrust on them by renegade corpora- desire to become active in the union. Richfield. As a rank-and-filer, he was a tions." "I was always outspoken and I found member of or chaired various union Beevers brings extensive experience an outlet to put that to good use. I saw committees concerning subjects like in negotiating with major oil companies how the union impacted families and negotiations, health and safety, workers' to his new job in charge of the National how things got better every two or three compensation, strike strategy and the Oil Bargaining (NOB) program. years with the next contract. I want this United Way. "We intend to operate the NOB pro- to continue for the next generation of OCAW President Bob Wages appoint- gram the way it's been operating the last kids who want to work in a refinery." ed him to be an international representa- 30 years," Beevers said. "It's a successful Breaux attended union meetings with tive in 1996. He headed the Crown program, and we don't plan to change his father when he was growing up. "I Central Petroleum lockout negotiations how it operates." thought it was great that people had a for four years and for the last three years In addition to his new position as voice against the company and could get he was District 13's coordinator for District 13 director, Breaux was also together." Rapid Response. named to chair the Boise-Cascade and He remembered when Texaco tried to Breaux was also active in the United Rock-Tenn councils. He started out with fire his father and the union got his job Way, Texas AFL-CIO and the Democra- the Oil, Chemical & Atomic Workers back. "I've had a personal experience tic party. (OCAW) union and came to the USW when the company decides it doesn't Beevers' office is in Beaumont, through the PACE merger last year. want you," he said. Texas. Breaux will maintain the District "I hope to use the recent merger to Starting out as a steward, Beevers 13 office in Baytown, Texas.

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ot all of our union's struggles result in of the USW's strategic campaigns and interna- victories. But we learn from all of them tional affairs departments." N— none more than from the fight with The ideal partners have industrial sectors Phelps Dodge from 1983 to 1986. similar to those where our members work. The The learning curve we climbed in challeng- USW additionally sought allies showing mili- ing that company taught us success in combat- tancy, sophistication in research and bargaining ing the abusive tactics of renegade corpora- and an understanding of the global economy tions. We had to develop strategies which with no direct ties to their governments. reached beyond the solidarity of picket lines and drew on relationships with other unions Common issues, agendas and organizations. "We've become an international union of Having that hard-won knowledge has served influence by providing a bridge to workers in us well in forging victories at Ravenswood various countries in the different regions of the Aluminum in West Virginia, and in the cam- world," USW President Leo W. Gerard said. paign to secure a contract for our brothers and "My hope is that this bridge will connect all sisters at Bridgestone-Firestone, as well as in of our unions so we can have common medi- completing the merger with the United Rubber ums, common employers, common issues and Workers in 1994. common bargaining agendas." After a rigorous struggle, we also were suc- The USW's first international alliance, cessful at CF&I in a seven-year strike and formed in 2004, was a partnership with lockout where a corporate campaign involved Germany's IG Metall, the world's largest union other labor unions, the public, the company's with some 2.4 million members. customers, lenders, stockholders and elected Both sophisticated and well-financed, IG representatives. Metall has significant influence throughout Europe, Scandinavia and Central/Eastern Working together Europe. The alliance is important because "We had strength in numbers," said Nick many German transnational corporations, such Mikatich, a former CF&I worker now on the as Continental AG, conduct business and manu- union's staff. "Working together is beneficial. facture in the U.S. We all have access to different resources. We CNM-CUT, a Brazilian union in the primary help them and they help us." metals industries, allied with the USW in April As a result of renewed worldwide activism, 2005. Brazil, the world's eighth-largest econo- our union began to forge a growing number of my, is rich in iron ore deposits and is a major alliances across the globe with unions repre- steel producer. Sophistication, economic senting workers in the same companies in strength and bountiful resources make Brazil which we represent members. and CNM-CUT a "natural bridge" to the rest of Today, the USW has alliances with six South America. major unions in , Brazil, Germany, Mexico and the United Kingdom, as well as Across the border our Blue Green Alliance with the Sierra Club. Simply sharing a border would be reason We are also working on developing two addi- enough for the USW to form an alliance with tional alliances with unions in South Africa. the National Union of Mining Steel and Allied Workers of the Republic of Mexico (SNTMM- Strategic approach SRM), known as Los Mineros. "Our alliances attempt to approach global- Mexico cannot be ignored because of its ization in a very strategic manner rather than large economy and its membership in the North helter-skelter," said Gerald Fernandez, director American Free Trade Agreement (NAFTA).

24 Labor Day Issue 2006 • USW@Work 37696_P01_34.qxp 8/8/2006 11:19 AM Page 25

Ultimately, our members in U.S. and Canada Because of the international ties Australia are immensely affected by what goes on in has with China, South America and , the neighboring Mexico. two partnerships provide the USW with a vehi- The alliance with Los Mineros proved valu- cle for advancing in that section of the world. able for us in 2004 when its members demon- The USW's most recent alliance is with the strated in Mexico City in support of our strik- Sierra Club to form the Blue/Green Alliance. Its ing members at ASARCO, a company owned primary focus is good jobs, a clean environ- by Grupo Mexico. More recently, our union ment and a safer world. Sierra Club is the reciprocated by conducting demonstrations nation's largest grassroots environmental orga- when, at the urging of Grupo Mexico, Mexican nization with 750,000 members. president Vicente Fox illegally removed The USW and the Sierra Club aim to Napoleon Gomez Urrutia as president of Los address the great challenges of today's global Mineros following a strike triggered by a economy by targeting issues with potential to Grupo Mexico mine disaster that killed 65 unite the American people in pursuit of a more miners. just and equitable global economy. Earlier, in January 2004, the USW played a European connection key role in bringing other unions into an envi- An alliance with broadened the ronmental partnership called the Apollo USW's European connection. With 1.2 million Alliance. Uniting nearly 16 million union mem- members, Amicus is Europe's second largest bers and 11 million environmental organization union and the largest manufacturing union in members across the country, the Apollo the United Kingdom. Known for being highly Alliance is dedicated to developing policies that developed and militant, Amicus represents promote government investment in renewable workers in a wide variety of industrial sectors energy at the federal and state levels that will and specialties including steel, glass and con- create new, good-paying jobs and lead to ener- tainers, among others. gy independence for our nation. With Amicus and IG Metall, the USW has So far, the alliance has been endorsed by 18 strategic alliances in Europe that represent more U.S. labor unions, the AFL-CIO, its industrial than four million workers at major international union council and building and construction corporations. trades department, as well as several state and Our union has two alliances in Australia. local labor federations. The USW and the Construction Forestry Mining Energy Union (CFMEU) share com- Right Stuff mon industrial sectors, a bond that was The USW's key effort in organizing the strengthened with a strategic alliance signed in Apollo Alliance was recognized in June when February, 2005. Both unions saw cooperation the first ever "Right Stuff Award," was given to as a way to combat globalization and improve President Gerard at the Campaign for America's communications among members. "Take Back America" conference in Washington, D.C. Australian alliance The award was presented by Academy At the same time, the USW formed an Award-winning director, actor and environmen- alliance with the Australian Workers' Union tal advocate Robert Redford, who described (AWU), the dominant union in steel and alu- Gerard as a "unique labor leader among leaders minum. The alliance focuses on network for- in his understanding of the need for new energy mation, cross-national bargaining and organiz- strategies that recognized the inherent link ing, workplace safety improvement and com- between solutions to global climate change and munication. the need for sustainable job growth."

USW@Work • Labor Day Issue 2006 25 37696_P01_34.qxp 8/8/2006 11:19 AM Page 26 Benefits Fight Nuclear Fuel Services Workers’ Strike to Preserve Pensions and Health Care Coverage mboldened by the race to the bottom that so-called free The company wants to remove the $55 cap on health care trade has created, many companies including Nuclear premiums paid bi-weekly by the union workers and have them E Fuel Services (NFS) are trying to transfer to employees instead pay 20 percent of the premium cost, which would sig- the responsibility for funding pensions and health insurance. nificantly increase their monthly payments. It also wants the Employers do this in the guise of “being competitive” so that USW members to pay higher co-payments and a $1,250 they can, along with their competitors, take more of the wealth deductible for the first time. workers have created and give it to the owners and managers. In mid-May, 358 members of USW Local 9677 in Erwin, Additional changes proposed Tenn., said “no thanks” and rejected a six-year contract offer Negotiation sessions held after the strike began have not from NFS that contained cutbacks in pension and health insur- resolved pension and health care issues. Instead, NFS has pro- ance. No one has crossed the picket line since the local struck posed an additional 31 changes to the contract and talked about the company on May 15. hiring permanent replacements. “This is basically driving us farther apart,” Birchfield said. Community support He said the additional issues affect seniority and job securi- “They understand the fight we’ve got, and I believe we ty. NFS wants to increase subcontracting, limit employees’ have solidarity,” said Local 9677 President Roger Birchfield. ability to change shifts and base layoffs and recall rights on “We have great community support.” perceived qualifications instead of seniority. The community understands that the workers are not asking for anything extra and that the company is trying to take away Investigation called what the workers already have, he said. The USW is requesting the U.S. Nuclear Regulatory Although NFS talks about its need to remain competitive, it Commission investigate alleged safety and production problems is the only company that makes nuclear fuels for the Navy. at the Erwin facility. NFS apparently used a contractor whose Birchfield feels the company’s real intent is to break the union, employees were not trained to do the job. Two security officers which has been at NFS for 50 years. reportedly were contaminated by nuclear materials while per- NFS proposed that new hires receive only a 401(k) savings forming their duties, indicating that contractors and salaried plan in place of a standard defined benefit (DB) pension. workers were not taking the necessary safety precautions. Current employees under age 55 would have their DB pen- Salaried employees doing jobs they normally don’t perform are sions frozen and would have to pay into a 401(k), with partial being exposed to nuclear materials and may have committed contributions from the company. Employees age 55 and over serious production errors. would receive, on average, an additional dollar per year Local 9677 President Roger Birchfield talks to fellow strikers at Nuclear increase in pension. Fuel Services in Erwin, Tenn. Photo by Jim Wozniak/Johnson City Press Photo: City Press Jim Wozniak/Johnson

26 Labor Day Issue 2006 • USW@Work 37696_P01_34.qxp 8/8/2006 11:19 AM Page 27 TemporaryTemporary ReprieveReprieve

fter mounting pressure from another angle," said Brad Clawson, a agency. The political muscle worked and Congress, the public and union Local 652 member who works at Idaho now Piketon workers need not worry Amembers, Energy Secretary National Laboratory. about their pension and health care bene- Samuel Bodman withdrew a Bush admin- Even though the agency publicly said fits. istration order to stop reimbursing current and retired contractor employees Phillips said it will take congressional Department of Energy (DOE) contractors would not be affected, contractors action to stop DOE from abolishing pen- for the costs of traditional defined benefit informed the USW that the DOE is pro- sion plans and implementing defined con- pension and comprehensive medical viding pension funding for current and tribution plans in the rest of the industry. plans. retired employees for only five years. Despite the temporary victory for Any such moves could affect about Administration blinks working families, USW-represented 10,300 workers the USW represents at The administration has also backed off workers employed by DOE contractors DOE contractor units in seven states. The proposed changes to the Energy are uncertain about the long-term future workers handle uranium enrichment and Employees Illness Compensation pro- of their benefits. hazardous waste disposal. gram. "We think the DOE is attempting to The Office of Management and abolish pension plans altogether," said DOE resistant Budget (OMB) drew fire when a congres- James "Kip" Phillips, an international Months prior to DOE's policy sional subcommittee exposed an OMB vice president and chair of the USW's announcement, workers at the memo that discussed ways to cut benefits atomic council. Portsmouth Gaseous Diffusion plant in to workers categorized as Special In April, the DOE said it would only Piketon, Ohio, were fighting to maintain Exposure Cohort, or SEC. pay contractors for the costs of 401(k) defined benefit pensions and retirement However, in a letter to Sen. Barack style retirement plans and only reimburse health care. For years they switched Obama, (D-Ill.), Budget Director Rob for so-called "market-based" health plans between contractors at the plant without Portman said the administration is now that typically offer fewer benefits at high- losing their seniority, pensions and bene- "not pursing any changes to modify bene- er costs to workers. fits. fit costs" of the program. Reps. Ted Strickland (D-Ohio) and Ed Workers who fall into the SEC catego- One-year study Whitfield (R-Ky.) added language to the ry worked in nuclear facilities as far back After the outcry in June, Bodman sus- Energy Policy Act of 2005 so that this as World War II when the DOE did not pended the decision for one year while seamless transfer of benefits would con- properly monitor workers' exposure or the DOE further studies the issue and tinue for former USEC employees at keep records. takes comment from stakeholders, includ- Piketon and at a plant in Paducah, Ky. Since records are nonexistent, those ing Congress and labor. Yet, the DOE argued over the intent of who have developed certain occupational The temporary reprieve did little to the legislation and wanted to consider illnesses including radiation-induced can- soothe workers' concerns. Vanishing workers, who had an average of 24 years cers and silicosis must only prove they retirement security and rising health care of seniority, new hires when they work were exposed on the job for one year, and costs are squeezing workers in all indus- for new contractors. that they developed cancer after at least tries. Prodded by union members, U.S. Sen. five years to qualify for a $150,000 lump "I think they're going to study the pol- Mike DeWine (R-Ohio) and U.S. Rep. sum and medical benefits. icy for a year and then come at us from Ted Strickland (D-Ohio) pressured the

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NewsNews BytesBytes

USW, UTU Sign Alliance he 77,000-member United Transportation Union (UTU) has signed an interna- tional strategic alliance with the USW to address a range of common issues in T the transportation sector in North America, including the industry's globalization. "This is neither a merger nor an affiliation arrangement," USW President Leo W. Gerard said. "Each of our unions retains its independence and autonomy, but we will work together more closely to share resources where there is mutual advantage, and to team-up on a number of public policy issues." UTU President Paul Thompson said his union has worked to improve the conditions of rail and bus workers for more than 120 years. The alliance provides for coordinating activities, sharing knowledge and resources, and activism in areas of organizing and legislative and political action. Oman Trade Agreement Passes espite concerns over the lack of labor rights and potential national security issues, Dthe House of Representatives passed the Oman Free Trade Agreement by a 221-205 vote. Twenty-two Democrats — seven more than the 15 who voted for the Central American Trade Agreement — voted July 20 in favor of the Oman FTA, along with 199 Republicans. Oman lacks labor protections, does not have independent unions or a tradition of freedom of association or representative democracy. The State Department labeled Oman as a desti- USW Secretary-Treasurer Jim English presents members of Local 602, nation country for victims of human trafficking of Acme Brick in District 13, with a commemorative watch recognizing and forced labor, yet the Republican leadership they are the largest individual Political Action Committee (PAC) contribu- refused to include an amendment that would have tors in the union at $20 per week. blocked goods made with forced labor. USW Joins School Book Paper Trade Case SW-represented paper workers at one of the world's Holly Hart, assistant director for the USW's legislative depart- largest production facilities for lined school paper note- ment, attended an ITC hearing July 25. Ubooks are fighting against unfairly dumped imports "Families have depended on employment at MeadWestvaco from China, Indonesia and India. for several generations," Heaton said. The union is supporting an anti-dumping trade case filed "As a consequence of imports, employment in the U.S. last October with the International Trade Commission (ITC) school notebook industry has declined significantly …, as did by the Association of American School Paper Suppliers. hours worked and total wages paid," Hart testified. At stake are the jobs of 350 MeadWestvaco workers in A final vote by six ITC commissioners to uphold prelimi- Alexandria, Pa., and 200 workers at nearby Roaring Spring nary tariff levels on paper imports is expected around Sept. 1. Blank Book Co. USW representatives, including District 8 Director Billy Thompson, Local 10-1442 President Mitch Heaton and

Save the Date he 2006 Steelworkers Joint Health and Safety Conference will be held Aug. 21-25 at the Westin TConvention Center Hotel in Pittsburgh. Conference and registration details are available at www.usw.org. USW representatives and paper workers at MeadWestvaco's Alexandria, Pa. plant gather outside the International Trade 28 Labor Day Issue 2006 • USW@Work Commission hearing room in Washington, D.C. 37696_P01_34.qxp 8/8/2006 11:19 AM Page 29

Photo by Gerald Dickey Can Conference ocal union bargaining com- mittee members from Silgan, LRexam, Crown Cork & Seal and Ball met in Pittsburgh to review the can and container industry and discuss 2007 bargain- ing. Because of the erosion of membership in the industry, com- mittees agreed to a new direction in dealing with the challenges that our members face. The approxi- mately 75 delegates passed resolu- tions that address organizing, improving communications to members and contract ratification. Can industry membership is 2,530. The conference is chaired by USW International Vice President Fred Redmond. Robert J. Petris, Retired director, Dies at age 81 Unfair Labor Practices obert J. Petris, a steel mill electrician who rose to become director of USW At Book Covers Inc. District 38 and later District 11, died July 2 at age 81. He retired in 1997. he USW has filed charges with the R Petris, of Kent, Wash., joined the USW as an electrician at Bethlehem National Labor Relations Board Steel in Seattle after serving in the U.S. Navy during World War II and worked his T alleging that mangers at Book way up to president of Local 1208. Covers Inc. bargained in bad faith and In 1965, he was appointed to the USW's staff as an organizer assigned to committed other unfair labor practices. District 38. In 1977, he was elected District 38 director, a position he held until BCI, a subsidiary of the Newark 1995 when the union consolidated districts and he became director of the larger Group Inc., has also failed to provide District 11. information that the USW requested in order to analyze the company's proposals Dutch Bank Urged to Help End Strike on pensions and other bargaining issues. he AFL-CIO, the USW and FNV Bondgenoten, the largest Dutch industrial The 93 members of USW Local 1216 union, are urging the ING Group, a Dutch banking conglomerate, use its struck BCI in June 4 over unfair influence to end the year-long strike at National Wire Fabric (NWF) in Star labor practices. The facility produces T City, Ark. backing for books and binder covers. ING is the largest shareholder of Gamma Holding, which bought NWF in 2001. The banking concern holds 26.19 percent of Gamma stock. ING also has a union connection. It manages over $75 billion in pension funds that include public and Taft-Hartley funds where union members are trustees. NWF permanently replaced USW strikers to break the union — a violation of the International Labor Organization's convention on "freedom of association" and Gamma's own published labor policies. Arbitrator Orders Gerdau to Pay Profit-sharing n arbitrator has ruled that Gerdau-Ameristeel Corp. must make $2 million in back pay payments to 120 USW members who work at a plant in ACalvert City, Ky. The payment is part of a 2002 profit-sharing agreement between the USW and North Star Steel, which was acquired by Gerdau-Ameristeel in 2004. Gerdau had claimed the profit-sharing program was discretionary and refused to pay it. "Our members are ecstatic with this victory," said Brian Graves, president of Local 9447-5. "We worked hard to make these profits and Gerdau tried to deny our share." USW contracts have expired at seven Gerdau locations in the United States, including three Sheffield Steel plants recently acquired by the company.

USW@Work • Labor Day Issue 2006 29 37696_P01_34X.qxp 8/10/2006 4:17 PM Page 30

Worker Economics

CEO Pay Now 821 Times What Minimum Wage Pays ast year, an average chief executive officer (CEO) was paid 821 times as much as a worker earning the federal minimum wage of $5.15 an hour. L Put another way, the average CEO earns more before lunch time on the very first day of work in the year than a minimum wage worker earns for the entire year. This extreme compensation ratio reflects both the extraordinary growth of CEO pay in recent years and the diminishing value of the federal minimum wage, which has not been raised since 1997. Elderly Face Medicare Hike The ratio of pay between Ratio of CEO to minimum wage, 1965-2005 he nation's elderly will face another CEOs and workers at the bottom 900 815 821 double-digit rise in their Medicare rung of the nation's pay scale 800 premiums next year, resulting in wasn't always so extreme. As 725 700 668 T recently as 1978, CEOs were 649 monthly payments of nearly $100. 600 The monthly premiums for supplemen- paid only 78 times as much as 540 tary medical insurance will rise by at least minimum wage earners. 500 400 11.2 percent from $88.50 to at least The chart below shows the Ratio 319 416 ratio of the annual compensation 300 $98.40, according to Bush administration 207 projections. of CEOs, including bonuses and 200 275 69 The premiums that beneficiaries pay incentives, to the annual com- 100 51 help to fund physician services and outpa- pensation of a full-time, 0 tient care, also known as Medicare Part minimum wage earner. 1965 1973 1989 1992 1995 1999 2000 2001 2002 2003 2004 2005 B. It is expected that the large majority of Steel Imports Head For All Time Record the nation's 43 million beneficiaries will teel imports rose by 33 percent in the first half of this year and are headed have to pay the increase. About 7 million toward an all-time record by year's end if the pace of activity continues of the poorest beneficiaries get their pre- unchanged. miums paid for through government pro- S The rising trend remains especially pronounced for countries with a history of grams, and some retirees get help from unfair trading, especially the Asian countries of India, Taiwan and China. their unions or former employers as well. The American Iron and Steel Institute (AISI), which represents the domestic indus- try, called for continued close vigilance of imports and strong trade law enforcement. Job Search Taking Longer "The first half import totals come against the backdrop of continued state support t's taking longer for U.S. job seekers to of steel capacity offshore, including the massive expansion of steel capacity that we find work as employers cut back see in China and the rest of Asia," said Louis L. Schorsch, president and CEO of Ibecause of concerns over the health of Mittal Steel USA and AISI chairman. the economy. The typical job search took 3.6 months Health Care: U.S. Spends Most, Covers Least in the second quarter, nearly a month he United States spends more on health care per capita than any other longer than it took in the first three advanced industrialized country, yet has the largest uninsured population. months of the year, according to an out- That system failure was revealed in a review of labor markets and living placement firm that tracks the trend, T standards in the United States and 19 other wealthy countries belonging to the Challenger, Gray and Christmas. A year Organization for Economic Cooperation and Development (OECD). ago, the typical job hunt lasted 3.1 While the United States spends more on health care than other OECD countries, months. about 16 percent of the population, or 45.8 million people, did not have any form of The second quarter survey could signal health insurance coverage in 2004, according to the most recent data available. a significant hiring slowdown, or Ireland, Austria and Finland spend about half of what the United States spends on increased layoffs, by the start of 2007. health care, yet cover 99 to 100 percent of their respective populations.

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Minimum Wage Hike Signed in USW Headquarters ennsylvania Gov. Ed Rendell came to the United Steelworkers’ headquar- ters building in Pittsburgh to sign legislation increasing the state's By The Numbers Pminimum wage by $2 an hour. Rendell had announced his intention to fight for a higher minimum wage Top 10 Largest CEO Pensions less than a year before at a rally outside the USW building following Annual Pension Pittsburgh's 2005 Labor Day parade. 1. Lee R. Raymond "Too many Pennsylvanians have been working full time and still living Exxon Mobil Corp. $8,187,200 below the poverty level at today's federal minimum wage,'' Rendell said at the 2. Henry A. McKinnell signing ceremony, which was attended by USW International President Leo W. Pfizer Inc. $6,518,549 Gerard, other labor union officers and advocates for the working poor. 3. Ed E. Whitacre Jr. Under the new law, Pennsylvania's minimum wage for most workers will AT&T Inc. $5,494,107 rise to $6.25 an hour on Jan. 1, 4. William W. McGuire 2007, then to $7.15 an hour on Photo by Erin Schubert UnitedHealth Group Inc. $5,092,000 July 1, 2007. The increase will 5. Robert L. Nardelli. take effect more slowly for qual- Home Depot Inc. $4,612,500 ified employers with 10 or fewer 6. Samuel J. Palmisano full-time workers. IBM Corp. $4,550,000 Pennsylvania was the 22nd 7. Reuben Mark state to approve an increase in Colgate-Palmolive Co. $3,700,000 its minimum wage since 8. Brian L. Roberts Congress last raised the federal Comcast Corp. $3,600,000 minimum to $5.15 an hour, 40 9. Kenneth D. Lewis hours a week for 52 weeks a Bank of America Corp. $3,486,425 year, makes $10,700. 10. Richard K. Davidson Union Pacific Corp. $2,700,000 Tax Breaks and Subsidies Make China World's Largest Steelmaker Source: AFL-CIO Executive Paywatch © 2005 hina has become the world's largest steel producer as a direct result of tax breaks, cash grants, export incentives and other subsidies from the Top 10 Highest Paid CEOs Chinese government. Total Annual C Compensation The subsidies give China an advantage over other competitors, contribute to the massive U.S. trade deficit and cause production jobs to move overseas, 1. Terry S. Semel according to a report by the American Iron and Steel Institute and three other Yahoo $230 million U.S. industry groups. 2. Barry Diller In five years Chinese production has nearly tripled to 349 million metric IAC/InterActive Corp $156 million tons — far beyond the size it would have reached under normal market condi- 3. William W. McGuire tions, according to the report, which is entitled "The China Syndrome." UnitedHealth Group $124 million "The Chinese steel industry in its present form is the direct product of mas- 4. Howard Solomon sive subsidies and other support provided by the Chinese government," the Forest Labs $92 million report noted. "It represents the type of behavior the Chinese government has 5. George David engaged in with respect to dozens of other industries." United Technologies $88 million 6. Lew Frankfort Coach Inc. $86 million In Death, Burro Worth More Than You 7. Edwin M. Crawford f you kill a wild horse or burro on federal land it can cost more in fines than Caremark Rx $77 million what is normally imposed on an employer for a workplace fatality. 8. Ray R. Irani I The Wild Free Roaming Horses and Burros Act levies a criminal fine up Occidental Petroleum $64 million to $100,000 and one year in prison for any person who causes the death or 9. Angelo R. Mozilo harassment of a wild horse or burro. Countrywide Financial $56 million On the other hand, the Occupational Safety and Health 10. Richard D. Fairbank Administration, the government agency in charge of protecting Capital One Financial $56 million American workers from unsafe conditions on the job, can only fine employers a maximum of $70,000 per willful violation. In *Results based on total compensation as salary and bonus in 2005. In addition, "other" compensation includes vested certain egregious cases, however, the workplace safety agency restricted stock grants and stock gains. can push for higher fines by issuing citations on an "instance- by-instance" basis. Source: Forbes.com-CEO Compensation Special Report by But if you commit an indecent act on television, such as Scott DeCarlo the Janet Jackson incident at the 2004 Super Bowl, the Federal Communications Commission can levy fines of up to $325,000.

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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, 3340 Perimeter Hill Drive, Nashville, TN 37211 Name New Address City State Zip