THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Contents Display
On October 22, a little over a month ago, the ITC, comprised of 3 Republicans and 3 Democrats, found that serious injury had occurred to this industry. At this point in time, I would also point out that this is an industry that has done everything possible to save itself. Under the voluntary restraint agreements of the 1980s, the industry has invested $60 billion in itself. Its productivity has increased 156 percent since 1980. And no one on the planet Earth makes steel more efficiently than our domestic industry. It now takes only 3.5 man-hours per ton to produce a ton of steel compared to 10 man-hours per ton two decades ago.
As far as the technology involved with the industry, it is on the cutting edge. Almost 50 percent of the steel purchased by automakers today was not even produced 7 or 8 years ago, given the changes. But I would point out to my colleagues, this is not only an economic issue but it is a human
[Page: H8521] GPO's PDF
The Trade Ambassador has suggested before any final implementation of relief under an ITC recommendation, the industry must consolidate. The industry needs this relief on liability in order to proceed.
Why today? Because the industry cannot wait until next year. The ITC recommendation is not due until December 19, and the President's final action does not have to occur until February 16. But what has happened over the last 36 days since I last appeared before the Committee on Rules in an attempt to offer this amendment to the economic stimulus package? At that time and on that day, on October 23, I indicated to my colleagues in the Committee on Rules that we were losing a steel company at the rate of one every 3 weeks. That was October 23. Today I stand before you and tell you we are losing steel and mining companies at the rate of one every 7 days.
Since October 23, USA Metals in Texas declared bankruptcy. Since October 23, Acme Steel in Illinois ceased all operations and are trying to sell themselves for $1. Since October 23, Geneva Steel in the State of Utah has ceased operations. Since that same date, LTV Corporation filed to protect its assets. And last week in the State of Michigan, Empire Mine idled all of its facilities indefinitely.
I would conclude my remarks on my amendment by reminding my colleagues, we are talking about American citizens who are losing their jobs, families who are losing their income, and I would ask for their consideration.
Mr. MURTHA. Mr. Chairman, I yield 2 minutes to the gentleman from Minnesota (Mr. Oberstar).
Mr. OBERSTAR. I thank the gentleman for yielding me this time.
Mr. Chairman, the gentleman from Indiana has made a very powerful and compelling case. Steel is the basic building block of an industrial society. In 1947, author John Gunther wrote that what makes America the greatest industrialized Nation in the world is its ability to roll more steel than the Soviet Union, Germany, France, Belgium and Great Britain combined.
That statement is no longer true. We are bombarded by unfairly traded steel , subsidized in foreign countries, to preserve a basic building block of their economy and to dump their excess capacity in the world's largest open free market, the United States. While we have played in the international trade arena by the Marquis of Queensbury rules, other countries are playing with black belt karate and kicking our brains out. Brazil, 27 different tax subsidies for the production and export of steel . Russia, Ukraine, producing steel at a loss in order to keep people working, and dumping their steel in this market and causing unemployment here.
The gentleman spoke well and truly about the legacy costs of the domestic steel industry. His amendment is one way, but the best way to avoid those legacy costs is for the administration to conclude the 201 proceeding now underway; impose countervailing duties or tariffs or quotas, and stop the influx of subsidized steel ; let the U.S. steel industry continue to work, to hire people, to keep them on the job, to keep those payrolls going. And we will not have to draw down the Pension Benefit Guaranty Corporation funding to support the retirement funds that are in jeopardy. We will not have to pay unemployment compensation to pay people not to work. We ought to do either what the gentleman from Indiana is suggesting or impose the penalty phase of the injury process underway now in the International Trade Commission.
Mr. MURTHA. Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr. STRICKLAND).
Mr. STRICKLAND. Mr. Chairman, I rise today as the son of a steelworker in support of the gentleman from Indiana's amendment. I want to commend the gentleman for his tireless efforts within the Steel Caucus to ensure that the Federal Government is utilizing every means possible to protect our domestic steel industry and those Americans it employs.
The goal of the steel industry legacy relief program will not only provide assistance to the steel producers in meeting retiree health care costs, but it also gives comfort to the nearly 2 million Americans who currently receive pensions and health care from current and former steel companies. This assistance is especially important for those who are eligible for retiree health insurance at the time a steel company ceases its operations.
It is no secret that our domestic steel industry is in jeopardy. This is an industry we rely on for our transportation, electric, oil and, most importantly, our national security needs. The domestic steel industry has been devastated by a flood of imported foreign steel , resulting in plunging steel prices and the closing of multiple steel producing companies. For example, LTV in Cleveland, like other steel companies, is now on the brink of shutting down, leaving thousands to be unemployed.
It is imperative that we make meaningful and effective reforms that will ensure the long-term viability of this vital industry. The steel industry legacy relief program is just one way to assist American steelworkers who are negatively affected by widespread plant closings and bankruptcies.
I want to thank the gentleman from Indiana. He is a soldier in this fight to protect this vital industry. I urge my colleagues to support his amendment.
Mr. ROGERS of Kentucky. Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr. BROWN).
[Time: 17:58]
Mr. BROWN of Ohio. Mr. Chairman, I thank the gentleman for yielding me time.
Mr. Chairman, I am proud to join the gentleman from Indiana (Mr. VISCLOSKY) in support of this amendment. As thousands of American steelworkers have sadly discovered, the U.S. has become the world's steel dumping ground. During the 1998 steel crisis, steel imports into the United States exceeded steel exports by 36 million tons. The trade deficit in steel was $11.7 billion, accounting for about 7 percent of our continually growing overall trade imbalance. The vast majority of these imports were subsidized by foreign governments and dumped at below-market prices in the United States.
Congress must respond. One immediate step we must take is protect the retirement benefits that these workers have earned. To encourage needed reorganization and consolidation of the domestic steel industry, a Steel Industry Legacy Relief Program should be created to provide assistance to steel producers in meeting retiree health care costs. This amendment establishes such a program, offering assistance equal to 80 percent of the total expenditures made to meet steel retiree health care liabilities.
Our country's history of flawed trade agreements has propelled the steel industry towards the crisis it faces today. It only makes sense that current and future retirees, surviving spouses, and dependents who are eligible for retiree health insurance which they earned at the time a company ceases operation be eligible to receive assistance.
We must protect the 700,000 hard-working families who rely on this industry for their salaries, pensions and health benefits, and for those communities in which they live. I urge all of my colleagues to support America's steelworkers and those communities in which these steelworkers live.
Mr. MURTHA. Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr. KUCINICH).
Mr. KUCINICH. Mr. Chairman, the legacy cost issue that has been raised by the gentleman from Indiana (Mr. VISCLOSKY) is one of the important elements in addressing the financial stability of America's steel industry.
Mr. Chairman, at this very time, 3,200 steelworkers in Cleveland are wondering whether or not they are going to have jobs tomorrow; and yet, despite the fact that the union and the creditors have worked together to make concessions, the management of LTV wants to liquidate the company. We are anticipating that new management will come in, and new management will need something done about legacy costs, as will management of steel companies throughout this country.
It is urgent that we address the issue that is raised by this amendment. Because of the accumulation by steel
[Page: H8522] GPO's PDF
The Visclosky amendment, supported by both the steel industry and the steelworkers, provides a solution. Much like title II of H.R. 808, the amendment would create a fund to address legacy costs. Steel companies would be able to draw on the fund to aid with the payment of health and pension benefits.
One might ask, what does this have to do with defense? That has been raised. The existence of a healthy steel industry is crucial to our national security. It is inexplicable that at the time when we are in a national emergency, at a time when our men and women are traveling overseas to defend the interests of this country, that we should simultaneously be here begging for the survival of the American steel industry, which has defended this country through matters, thick and thin, over the last century.
It is essential that Congress begin to take action to save this steel industry and to save the jobs. Right now there are thousands of American families, tens of thousands, who are watching this Congress, wondering if we are going to hear their pleas. We bailed out the airline industry. The insurance industry is going to be walking down this aisle in the next few hours. And yet what about American steel ? What about protecting our national security? What about legacy costs?
Mr. MURTHA. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, one of the points that I want to make, and I am not in the habit of speaking when I know a point of order is going to be made against legislation, but here is what we face: for instance, Bethlehem Steel has 18 retirees for every person working. Bethlehem's pension cost is going to be at least $2 billion over a period of time if they go chapter 7.
Now, who picks that up? The PBGC picks it up. We set up the PBGC in order to protect what we thought would be garment factories going out of work. We only pay 80 percent of the pension costs. We pay none of the health care costs.
Right now all of those retirees are being paid by Bethlehem Steel . We have the same problem with LTV and all these other companies that have retirees that do not have full funding for the pension guarantee in their fund. So we are going to have to face this.
We did it for the coal miners, for the health care costs for the coal miners, and we are going to have to look at some way to take care of these pensioners. All of us have retired steelworkers. We have them from Pennsylvania that move to Florida, we have them in California, we have them all over the country. If we do not, we are going to have thousands of steelworkers getting 80 percent of their pension and losing their health care costs completely.
So I hope that when we go to conference we will look at the possibility of finding a way to fund some of these corporations out of the tariffs. Now, if the administration finds a way to charge tariffs and then we can take the money out of the tariffs, it would cost the government a lot less than it would if we go to PBGC. So I would ask all the Members of the committee to think about the disastrous process we are going to have to go through if we lose these steel companies, besides the fact of national security.
Mr. Chairman, I yield 2 minutes to the gentlewoman from Ohio (Mrs. JONES).
Mrs. JONES of Ohio. Mr. Chairman, I would like to thank the gentleman for yielding me time.
I am pleased to rise in support of this amendment. In the city of Cleveland, I am sure you have heard from my colleague that we are in the midst of the closing of LTV Steel . That will impact some 3,200 workers at LTV, but also, in addition, the retirees and others who are supported by the steel industry.
I rise in support of this Legacy Relief Program because the retiree costs in the industry are surely the highest costs that are paid by the industry. In the case of a steel company that ceases operation on or after January 1, 2000, current and future retirees, surviving spouses and dependents who are eligible for retiree health insurance at the time the company ceases operation shall be eligible to receive assistance.
That is what our steel companies need. The percentage of the cost of retiree health care costs far exceeds the other costs of a steel company remaining in place.
I want to thank my colleague, the gentleman from Indiana (Mr. VISCLOSKY), for offering this amendment. I want to thank my other colleagues in the Steel Caucus who have stood up on behalf of steelworkers across this country.
As we have talked over the past weeks of being in an economic crisis as a result of September 11, the steel industry is in an economic crisis, not just because of September 11, but because of the failure of our Nation to come up with a program that adequately addresses the steel industry.
It is the long-term impact that has caused the steel industry to be in the dilemma it currently is in, and it is therefore incumbent upon us as Members of Congress to step up to the plate and say to the steel industry, we want to save you; we are going to do two, three or four things to help you get on the right track.
This bill is one of the things that we can do to get the steel industry on the right track, and, in addition, to support those workers who built the World Trade Center, those workers who built all of the buildings that cross this country.
Mr. STUPAK. Mr. Chairman, I am pleased to offer this important bipartisan amendment with Representatives LATOURETTE and STRICKLAND. Our amendment limits the funds that can be allocated under this bill to purchase steel , so that such funds can only go towards purchasing American melted and poured steel .
I would like to first give special thanks to Ranking Member MURTHA, who has recognized the importance of this provision to the steel industry. I thank him, as well as Chairman LEWIS, for their support.
This amendment is the least we can do. Our U.S. steel industry is in an ever increasing downward spiral.
In fact, just last week LTV Corporation announced that it is seeking to shut down its steel making operations. LTV is a part owner and customer of the Empire Mine in my district, and because of that announcement, the Empire Mine is going to be idled indefinitely. Most of the workers at the Empire will be laid off by the end of the month. 770 hourly and 120 salaried employees will be affected by this mine closure.
This mine closing is absolutely devastating to these workers, their families, and the communities that rely on the iron ore mines. I owe it to these hardworking citizens of northern Michigan to do what I can in Congress to try to save the steel . and iron ore industries.
All I say to everyone in this House: we should wherever possible promote our domestic steel industry and encourage the purchase of American steel . We now have such an opportunity.
The Department of Defense purchases ships, plans, and other systems that consume large quantities of steel . As we appropriate our taxpayer dollars towards funding our defense needs, we should ensure that these monies are not used to further endanger our already weakened domestic steel industry.
Our taxpayer dollars should not go to buying foreign steel , American money they should buy American steel .
Our steel industry is efficient, it is competitive, and it produces a high quality product. It is being driven out of business by the dumping of below market priced foreign steel .
U.S. government contracts should not be buying foreign dumped steel over our quality U.S. steel .
Our amendment requires the Department of Defense contractors to buy U.S. melted and poured steel .
Our amendment does provide that in cases where the steel product is not domestically available, or there are some national security reasons for buying foreign steel , that an exception is possible. Other than those instances, however, we will be promoting our domestic steel industry in its fight to survive.
In this time when our very national security has been threatened, we cannot further jeopardize our domestic steel industry. Vote for the Stupak-ŠLa Tourette-Strickland amendment
[Page: H8523] GPO's PDF
POINT OF ORDER
Mr. ROGERS of Kentucky. Mr. Chairman, I make a point of order against the amendment because it proposes to change existing law and constitutes legislation in an appropriations bill, therefore violating clause 2 of rule XXI.
The rule states in pertinent part: ``An amendment to a general appropriation bill shall not be in order if changing existing law.''
The amendment directly amends existing law, and I ask for a ruling of the Chair.
The CHAIRMAN. Does the gentleman from Indiana (Mr. VISCLOSKY) wish to be heard on the point of order?
Mr. VISCLOSKY. Mr. Chairman, I would ask to be recognized.
Mr. Chairman, I will not concede the issue of relief being necessary for the domestic steel industry. I would concede that the amendment that was offered here today is violative of the rule we are operating under. I would simply want to withdraw that amendment.
| <<< | >>> |
THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Contents Display