Bush asked to keep pledge on steel tariffs

Well over 100 people from a broad cross section of unions and communities throughout northern Minnesota attended a press conference at Duluth’s Port Terminal Saturday that appealed to President Bush to continue his tariff program on imported steel.

A “Foreign Trade Zone #51” warehouse wall served as a backdrop for a podium that had USWA District 11 Director David Foster, Senator Mark Dayton, Rep. Jim Oberstar and others saying that Bush’s trade program has worked but doesn’t go far enough.

A crowd gathered to “Stand Up for Steel” at the Duluth port terminal.

Photo by Erik Peterson

In March 2002, Bush imposed tariffs on certain types of foreign steel to give the U.S. steel industry a 3-year chance to regroup. He is now being pressured by the steel consuming industry to discontinue the minimal tariffs to help them.

A report Sept. 20 by the U.S. International Trade Commission disputed steel consumers claims that they have been hurt by the tariffs. Foster said the ITC report shows more jobs were lost before the tariffs were imposed than in the year and a half since they have been used. The tariffs haven’t stopped the cascade of bankruptcies in the steel industry which have reached 40 companies, he said.

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Job losses in manufacturing are well over 3 million in just over two years, with over 50,000 of them members of the USWA, Foster said.

“We’ve lost another 50,000 in other manufacturing jobs in the last two and half years,” Foster said. He said the three-year tariff program needs to be extended to four years, not three, and must include more types of semi-finished steel as well as iron ore.

Brazil alone exports 7 million tons of iron ore to the U.S. out of a total of 13 million tons. Closed mines and plants on the Iron Range are the result.

It’s not only current workers and active companies that are hurt by trade policies, Foster said. “We have 250,000 Steelworker retirees who have lost half their pensions and health insurance in the last year. There is no hope for them to regain those benefits without a healthy steel industry.”

Congressman Oberstar’s father was an ore miner on the Iron Range and an organizer of his USWA union. Oberstar has a long history of understanding how important mining is to America and how it has been devastated by trade policy.

“Twenty years ago we had 16,000 employed in northern Minnesota taconite plants with Republican President Ronald Reagan doing nothing because he felt world trade was good for the national economy,” said Oberstar, who tried to get steel quota bills passed then. Within a short period of time, only 1,500 jobs were around and payrolls had dropped from $450 million to $100 million. U.S. trade policy continues to devastate mining, steel and manufacturing, he said.

Industry wants it both ways, Oberstar said. Auto manufacturers want protection from foreign made cars but want better access to foreign steel to make their own vehicles.

Oberstar said he will soon submit three bills that will support the steel and mining industries and protect pension and health care benefits of workers.

U.S. Senator Mark Dayton is a co-sponsor of that legislation in the Senate. He said it is the least he can do because he feels like he has failed the men and women of the steel industry.

“I feel like I failed when jobs are lost and pensions are discarded,” he told the crowd. “Government failed. America failed.” He said he was sick and tired of politicians and policies that favor people in China, Singapore and Mexico, which is why our economy isn’t functioning.

As for those who have underfunded pensions and health care benefits, Dayton said the money could be traced and those that robbed from the workers “ought to be in jail.” His comments received cheers from the crowd at the Port Terminal.

Joining those speaking at the press conference was Frank Ongaro, president of the Iron Mining Association of Minnesota. He also called on Bush to fulfill his promise of three years of tariffs.

“There are still 4,000 people still directly employed in the mines and plants (of northern Minnesota),” Ongaro said, “with thousands more in spin-off jobs.” He said the impact to the state economy from mining is well over $1 billion a year.

New innovative labor agreements between the mining companies and the USWA are working and leading to even greater productivity, Ongaro said.

Foster said all Americans need to keep the pressure on Bush and other politicians because what happened in the steel industry will soon affect workers outside the manufacturing sector.

“The State of Missouri is contracting out services to India because it is cheaper,” he said.

The globalized world economy is being questioned now by poor nations, who recently derailed WTO talks in Cancun. Those talks were geared to do away with American anti-dumping laws in a trade off for intellectual property rights and protection for drug pharmacies but got dumped themselves.

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The backlash against free trade will continue with demonstrations at the Free Trade of the Americas talks set for Miami in November, where trade ministers of 34 Western Hemisphere nations will try to extend FTAA. On Oct. 10 in Eveleth, northern Minnesota will join communities around the nation to say “no to WTO, no more NAFTAs or FTAAs and we want our country back,” said Foster.

For more information
Visit the Steelworkers union website, www.uswa.org

More photos from the Stand Up for Steel event
Photos by Erik Peterson

Senator Mark Dayton addressed the crowd, as Congressman Jim Oberstar (second from left) and Steelworkers District Director Dave Foster (right) and others looked on.

Participants wore buttons to gear up for a mass mobilization against free trade November in Miami.
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Jerry Fallos and Bruce Lotti, both presidents of Steelworkers locals who have seen their members severely hurt by unfair trade agreements.

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