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Mr. WELLSTONE. Mr. President, I am pleased to join as a cosponsor of this extremely important legislation, S. 2189, the Steel Industry Retiree Benefits Protection Act of 2002. This legislation is coming none too soon, for hardworking steelworker retirees who, through no fault of their own are facing the loss of health and death benefits, and for the industry itself that needs this relief in order to revitalize itself and remain competitive.
In particular, the act would preserve the health and death benefits for the retirees of steel, iron ore, and coke companies facing consolidation or liquidation. The bill establishes a health benefits program for steel retirees of acquired or shuttered steel companies modeled on health plans available for Federal workers. Like its model, the new program will require retirees to pay reasonable monthly premiums, will provide coverage for prescription drugs, and will deliver medical care through preferred provider organizations. In addition to health coverage, the proposed legislation extends a $5,000 death benefit to the designated beneficiary of each enrolled retiree.
The hard working families of the Iron Range of Minnesota are facing excruciatingly tough times. Their situation is truly desperate and they need our help.
The taconite industry in which generations of workers have proudly labored has been ravaged by surges of semi-finished steel slab dumped in this country by our trading partners. Many have lost their jobs, just last year 1,400 workers were laid off when LTV Steel Mining closed its doors. Now, 10,000 former employees, their spouses and dependents face loss of health insurance and many are finding that they stand to lose a good portion of the pensions the company had promised.
Last month, the HELP Committee held hearings on the need for legacy cost legislation both for retirees and for the industry. The testimony was riveting. The need compelling. My good friend, Jerry Fallos, president of Local 4108 of the United Steelworkers of America, testified at those hearings. The stories he had to tell were grim indeed.
As Jerry said, the people of the Iron Range are used to hard times. They have weathered any number of challenges over the years. They are good people, proud, hard-working, the best you can find anywhere. They are survivors, and they will get through these difficult times as well. They have given much to their country, and now they need our help.
I am determined to give them that help. The good people of the range have responded to their country in its times of needs. Over the years our Nation's economy flourished and our manufacturing industries boomed from the iron ore produced through the labors of steelworkers on the range.
There is both a moral imperative to meeting this challenge as well as a business necessity in doing so.
As a matter of fairness and economic justice, we must help the working families who gave their all to this industry and who, through no fault of their own, indeed because of the unfair practices of our trading partners, find themselves without jobs, health care or adequate pensions. In the last 2 years, 32 U.S. steel companies have filed for bankruptcy, and these companies represent nearly 30 percent of our domestic steel making capacity. These failures were not the fault of the workers at these companies. These failures resulted from unfair and predatory practices of our trading partners over an extended period.
Equally as important, our domestic steel industry will simply not be able to revitalize itself and remain competitive while shouldering the massive legacy cost burdens that exist. With on average three retirees for every active employee, the industry faces virtually insurmountable barriers. Government assistance is essential and we will need the President's active support for legacy cost legislation if we are to prevail.
Unfortunately, however, the President appears to have washed his hands of this problem. He claims to have done his part by providing section 201 relief to the industry. The issue of legacy costs, he says, for the sake of retirees and to permit industry consolidation, is someone else's problem.
It is not, however, as simple as that. First, the jury is still out on whether the section 201 relief will in fact be that meaningful. According to recent accounts, there are over 1,000 exceptions to the President's section 201 decisions being considered. And, Secretary O'Neill is reported as saying that he suspects ``a significant proportion of them will be favorably decided.'' Moreover, the President's section 201 decision did nothing for the iron workers in Minnesota and Michigan. While the President imposed a fairly significant tariff on every other product category for which the International Trade Commission found injury, for steel slab he decided to impose ``tariff rate quotas.'' This brings us virtually no relief. Nearly 7 million tons of steel slab can continue to be dumped on our shores before any tariff is assessed. The injury will continue.
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Second, by ignoring the legacy cost issue, the President is walking away from the hard work that must be done to promote industry consolidation and re-vitalization, an objective this administration has been advancing from the start.
We need serious legacy cost legislation and that is precisely what this bill represents. I urge my colleagues in the Senate and the House to support its passage. And I urge the President to take another look at this issue and work with us on a meaningful solution.
The viability of our domestic steel industry, and our national security, are at stake here. We must act, and we must act soon.
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