[Congressional Record Volume 147, Number 178 (Thursday, December 20, 2001)]
[Extensions of Remarks]
[Pages E2408-E2410]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          STEELWORKERS' APPEAL

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                      Thursday, December 20, 2001

  Mr. KUCINICH. Mr. Speaker, on December 12th, hundreds of Americans 
came to the Capitol to implore their elected representatives to help 
them. They are steelworkers, living in Ohio, Indiana, Illinois, 
Minnesota and Pennsylvania. They work for LTV Steel Company, which is 
in bankruptcy after enduring years of unfair competition from foreign 
imports.
  The steelworkers testified before a hearing of the Congressional 
Steel Caucus. They spoke poignantly and eloquently. They expressed the 
key principles upon which our Republic was founded: liberty and justice 
for all. They have made the reasonable demand that we, their elected 
representatives, uphold those principles in a global economy.
  I am entering into the Record the testimony from that hearing, so 
that all of my colleagues may hear their appeal.

   Statement of Tony Panza, LTV Steelworker, United Steelworkers of 
                  America, Local 1157, Cleveland, Ohio

       Hello. My name is Tony Panza. I'm 36 years old and have 
     been employed by LTV Steel Company in Cleveland, Ohio since 
     1988. During my first ten years, I worked in the power house 
     of the mill. I later joined the apprenticeship program and 
     became a millwright in 1998. I had a good job and expected to 
     work in this job until I retired some day. I am a third 
     generation steelworker. I am married and my wife and I have 
     two daughters, Isabel, age four, and Rosalie, age 10.
       In late 2000 when LTV first declared bankruptcy after 
     suffering from the surge of foreign dumped steel, I joined 
     the SOS (Save Our Steel) Committee to try to get Congress to 
     stop illegally-dumped foreign steel before it destroyed any 
     more American steel companies. Unfortunately, we have been 
     unsuccessful up to this point. Some 29 American steel 
     companies, including LTV, have been forced into bankruptcy. 
     Several of those companies have been forced to shut down 
     completely. One of the reasons is the snail's pace of the 
     process in getting a loan from the Emergency Steel Loan 
     Guarantee Board. It is my understanding that this program was 
     established for circumstances just like what we face at LTV. 
     The system seems to be working against us. By the time we can 
     get help, it may be too late.
       I urge the Steel Caucus to do whatever you can in order to 
     see that this program fulfills its duties under the law. 
     Also, I'd like to stress to everyone here the devastating 
     effect a permanent shutdown of LTV Steel would have not only 
     upon our steelworkers, but also all of our retirees. It seems 
     the only growth industry in this country is health care. 
     Prices for health care, including prescription drugs, far 
     exceed any increase in wages or benefits. If LTV permanently 
     shuts down, not only will our retirees get reduced pensions 
     from the PBGC and become a burden on the government, they 
     will also be forced to bear this great additional cost on 
     their fixed incomes.
       Growing up in this country, I was always taught to respect 
     and care for my elders. It would seem that some in our 
     government have forgotten this basic lesson. To allow those 
     that invested so much of their blood, sweat, and tears in an 
     industry and a company to make this country strong to be 
     thrown to the wolves would make them victims to the policies 
     of their own government. With the current economic situation 
     in this country, the devastating effects a permanent shutdown 
     of LTV would have would only make it harder on America to 
     pull out of the current recession. It will only create a 
     bigger burden on city, state, and Federal governments. Worse 
     than that is the loss of self-respect of the people who 
     helped to make this a great nation.
       My brothers and sisters and I are not asking for riches. We 
     are not sports stars or movie stars. We are only asking to 
     have the right to earn decent wages and benefits through the 
     sweat of our labor so that we can buy a house, educate our 
     children, and some day retire in dignity. The people here in 
     Congress and in this administration have the ability to make 
     that happen.
       Do not let the American dream die from neglect. I urge you 
     in the strongest possible terms to get the Emergency Steel 
     Loan Board to approve the $250 million loan guarantee to LTV 
     Steel.
       Thank you.

                                 ______
                                 

   Statement of Bob Rankin, LTV Steelworker, United Steelworkers of 
                  America, Local 188, Cleveland, Ohio

       Thank you for the privilege of appearing today to speak 
     about the future of LTV Steel and the future of steelworkers 
     like myself and thousands of others.
       My name is Bob Rankin. I worked as a production worker at 
     LTV's mill in Cleveland, Ohio. I have worked for LTV since 
     1978. My job was to inspect steel products being manufactured 
     on the line.
       I have a 10-year old son born with a brain injury. When he 
     was two years old, the doctors told us that he probably would 
     not be able to speak or communicate with other people. We 
     found a hospital in Philadelphia called the Institute for 
     Child Development. He was put in 12 to 14 hours a day of 
     therapy. Our insurance paid for 85 to 90 percent of the 
     costs. The cost for one week of care is approximately 
     $18,000. Our son was in this program for three years and he 
     has achieved remarkable success during that time. He is now 
     walking and talking and going to a regular school. Without 
     our insurance, this would never have happened.
       He still receives physical therapy today which helps him to 
     have a better quality of life. If it were not for my 
     insurance, the cost of his care in a public hospital setting 
     would have been enormously more expensive and probably would 
     not have improved his medical condition.
       My wife and I are not unique in wanting the best life 
     possible and the best medical care for our child. There are 
     many other workers at LTV who face similar challenges in 
     providing health care for their loved ones, whether it is a 
     spouse or children.
       As I see it, the emergency steel loan guarantee is the next 
     step in helping to save LTV Steel and our jobs and health 
     care benefits. The Steelworkers union has actually already 
     taken the first step in cooperation with the company's 
     unsecured creditors by developing a plan which includes work 
     rule concessions by the steelworkers.
       Our members work hard every day. Many, like myself, have 
     devoted years to making LTV Steel succeed. Unfortunately, 
     over the past five years, we have witnessed a literal flood 
     of foreign-made steel coming into the U.S. market. This has 
     depressed steel prices here in the U.S. and is largely 
     responsible for the circumstances which have forced LTV Steel 
     and 29 other U.S. steel companies into bankruptcy.
       Congress created the Emergency Steel Loan Guarantee Board 
     for precisely this situation; to help a domestic American 
     company that has been ravaged by cheap foreign steel to get 
     back on its feet and survive. We have seen in the news where 
     the IMF and the World Bank have allowed loans to foreign 
     countries, including China, so that they can build up their 
     own steel industries. Our own government has backed these 
     loans. Yet when we are pleading for our survival, we are kept 
     waiting and wondering whether we will have jobs.
       I urge you not to wait any longer. Please contact the 
     Emergency Loan Guarantee Board and ask them to approve the 
     $250 million loan guarantee for LTV Steel. We need this 
     guarantee to save our jobs and to save our families.
       Thank you.

                                 ______
                                 

 Statement of Richard Dowdell, LTV Steelworker, United Steelworkers of 
              America, Local 1011, Indiana Harbor, Indiana

       Thank you for the opportunity to appear before you today to 
     speak about the crisis facing myself and over 8,000 other 
     employees of LTV Steel.
       My name is Richard Dowdell. I serve as a Unit Co-
     chairperson of the Chicago coke plant. I began working at LTV 
     Steel in March, 1964 as a stove tender. I joined the 
     mechanical apprenticeship program and became a millwright in 
     1966. I am married and have two children.
       LTV has arbitrarily decided it is better for the employees 
     working in its steel mills to no longer have a job. They 
     actually told the bankruptcy court judge that it is better 
     for us to have finality in this matter and to get on with our 
     lives. But I have invested 37 years of my life working for 
     LTV Steel and I am not willing to go without fighting to save 
     my company and my job. The Steelworkers union and the 
     unsecured creditors have put forward a modified labor 
     agreement that can and should be accepted. The sacrifices 
     being offered by our steelworkers will give us at least a 
     fighting chance to save LTV Steel if they are approved by the 
     bankruptcy court.
       The termination of our contract would mean that thousands 
     of steelworkers and retirees could lose their health 
     insurance. My wife has an existing medical condition where 
     she has a microvalve in her heart which requires expensive 
     medication. If we were to lose our health insurance, I do not 
     know how we would be able to afford her medication. There are 
     some 69,000 LTV retirees, many of whom are in similar 
     circumstances and are relying on the company providing their 
     health insurance. if we were to lose our health insurance, 
     there may not be anywhere for us to go, especially for those 
     like my wife who have serious, pre-existing medical 
     conditions that require expensive medication.
       LTV's asset protection plan does not protect two of their 
     most important assets: the

[[Page E2409]]

     company's two coke plants, one in Chicago and the other in 
     Warren, Ohio. These facilities may be worth $300 million. 
     Instead, the company has chosen to permanently shut down 
     these facilities. These facilities, unlike the hot mills, are 
     not subject to the court's recent December 5th order 
     providing for hot idle shutdown. The coke facilities are 
     subject to being permanently closed now unless the judge 
     modifies his order.
       The steelworkers and retirees of LTV Steel ask you to do 
     all that you can to ensure that the Emergency Steel Loan 
     Board moves quickly to approve the $250 million loan to save 
     LTV Steel. Please act now before it is too late.
       Thank you.

                                 ______
                                 

    Statement of Councilman Roosevelt Coats, City of Cleveland, Ohio

       Thank you Mr. Chairman and members of the U.S. House of 
     Representatives Steel Caucus for receiving my testimony today 
     concerning the future of LTV Steel. My name is Roosevelt 
     Coats and I am a member of the City Council from Ward 10 in 
     the city of Cleveland, Ohio. I have served on the City 
     Council since 1987. Prior to that time, I was a Union 
     Representative for the United Steelworkers of America.
       I share the concerns of Congressman Dennis Kucinich, 
     Congresswoman Stephanie Tubbs-Jones, the people of Cleveland, 
     and many in this room about the future of LTV Steel Company.
       The research done by the City of Cleveland about the 
     possible loss of LTV Steel is devastating to our city and to 
     the lives of tens of thousands of people who live in our 
     city. The loss of LTV Steel would mean the loss of 3200 
     steelworkers' jobs in the City of Cleveland. It would also 
     result in the loss of another 7500 steelworkers' jobs in the 
     states of Ohio, Indiana, Illinois, Michigan, and Minnesota. 
     40,000 additional jobs would be affected nationally, and 
     69,000 families nationwide would have pensions and health 
     care benefits either reduced and/or eliminated.
       The prospect of losing your health insurance, especially if 
     you are an older person who is retired, living on a fixed 
     income, and facing mounting costs for health care and 
     prescription drugs is nothing short of frightening. Where can 
     an 80-year old retiree with preexisting medical conditions go 
     to get health insurance if they lose their insurance? How can 
     current workers afford health insurance for their children, 
     their spouse, and themselves if they lose their insurance? 
     These are the key questions which trouble thousands of my 
     constituents today.
       Needless to say, the loss of 3200 jobs would have a 
     tremendous impact upon the City of Cleveland, mainly because 
     of the city losing the tax revenue from these family-
     supportive jobs. LTV also pays millions of dollars a year in 
     property taxes to the City of Cleveland. This is revenue to 
     our city which is vital in paying for police, fire, 
     education, public health, and other vital functions of our 
     local government. Such a significant loss of local tax 
     revenue would necessarily lead to either cutbacks in city 
     services, layoffs of public personnel, or increases in taxes 
     to maintain services, or perhaps a combination of all three 
     options. It would also lead to an erosion of our city's 
     infrastructure as we know it today. There is no doubt that 
     the loss of LTV will lead to a diminished quality of life for 
     people in Cleveland. We saw what happened twenty years ago 
     when the steel industry was in crisis, how entire communities 
     in Pennsylvania, Ohio, Indiana, Minnesota, and elsewhere were 
     devastated when steel mills shut down and workers were 
     suddenly displaced.
       The cost of allowing LTV Steel to go under will ultimately 
     fall upon every taxpayer in Ohio and in America in the form 
     of taxes to pay for unemployment insurance, food stamps, 
     health care, job training and placement, and other services. 
     These additional costs to our city and to state government 
     will come at the very moment when we are in a recession and 
     state and local tax revenues are plummeting.
       The environmental cleanup which would be necessary if this 
     plant closes down would also create a tremendous burden for 
     the City of Cleveland. The vendors who serve LTV Steel and 
     the company's customers would also be negatively impacted by 
     the loss of jobs in a shutdown of LTV Steel.
       LTV, like all other American steel manufacturers, has 
     become a victim of unfair and unbalanced trade policies which 
     have permitted a flood of foreign steel, much of it 
     ``dumped'' illegally, into the U.S. market. This flood of 
     foreign steel has depressed prices so severely that no one 
     can make money in this industry in America. With 29 
     companies, including LTV Steel, in bankruptcy we know that 
     time is running out. We do not want to see LTV join the ranks 
     of those steelmakers who have shut down permanently.
       On behalf of the workers and retirees of LTV Steel Company, 
     I implore you in the Congress and the Administration to do 
     all that you can to save LTV Steel.
       Thank you.

                                 ______
                                 

  Proposed Resolution No. 2002-24 Preservation of U.S. Steel Industry

       Whereas, the United States steel industry is in the midst 
     of a serious crisis that impacts not only steel producing 
     states, but the security and economic well-being of the 
     entire nation; and
       Whereas, since the United States is experiencing a 
     recession and, as a result of the tragedy of September 11, 
     2001, is embroiled in international military action, the loss 
     of the capability to produce steel domestically will pose a 
     threat to national security and the nation's ability to 
     retain a manufacturing base; and
       Whereas, America's crumbling infrastructure needs to be 
     rebuilt and domestically produced steel could be used to 
     assist in the rebuilding of our cities and towns; and
       Whereas, suppliers of raw materials from areas such as 
     Minnesota, Michigan, West Virginia and Pennsylvania, and 
     consumers such as automobile manufacturers in Michigan and 
     aerospace manufacturers in Washington would be severely 
     impacted if the domestic steel industry is permitted to 
     erode; and
       Whereas, by way of example, 3,200 steel industry-related 
     jobs would be lost in Cleveland, 7,500 jobs would be 
     eliminated in Ohio, Illinois and Indiana, 40,000 additional 
     jobs would be affected nationally and 50,000 families nation-
     wide would have pension and health benefits reduced; and
       Whereas, foreign steel imports have spiked to 40 percent of 
     the U.S. market, up from 20 percent just two years ago, by 
     selling steel at prices that are significantly below the cost 
     of production; and
       Whereas, the U.S. Trade Commission has determined that 
     illegal dumping of foreign-made steel has occurred and the 
     administration is currently considering an appropriate remedy 
     for this practice;
       Now, therefore, be it resolved, That the National League of 
     Cities urges the President to consider action under 
     international trade law to determine whether there has been 
     dumping of foreign-made steel in the U.S.
       Be it further resolved, That the National League of Cities 
     urges Congress and the Administration to consider federal 
     programs to assist U.S. steel makers in gaining resources 
     that would be used for reinvestment, retooling and 
     restructuring.

                                 ______
                                 

  Statement of Bruce Simon, Counsel to United Steelworkers of America

       Good afternoon.
       My name is Bruce Simon. I am a partner in the firm of 
     Cohen, Weiss and Simon, and we are Counsel to the United 
     Steelworkers of America in the LTV Steel matter.
       I'd like to start with a brief review of one of the key 
     findings of the Emergency Steel Loan Guaranty Act of 1999; an 
     overview of employment in the steel industry; an update on 
     LTV itself, including the status of the bankruptcy 
     proceeding, and then deal with the loan application now 
     pending before the Emergency Steel Loan Guaranty Board. I 
     will conclude with a suggestion about what the Steel Caucus, 
     and the United States Congress can do about it.
       First, a little congressional history:
       1. [Sec. 101(b)(6)] of the Emergency Steel Loan Guaranty 
     Act of 1999, provides: ``Congress finds that (6) a strong 
     steel industry is necessary to the adequate defense 
     preparedness of the United States in order to have sufficient 
     steel available to build the ships, tanks, planes and 
     armaments necessary for the national defense''. And that was 
     before September 11, 2001.
       2. Congress's findings in the 1999 law also recited the 
     loss of 10,000 steelworkers jobs in 1998, and 3 medium-sized 
     steel bankruptcies (ACME, LaClede, Geneva).
       Since then, literally tens of thousands more steelworkers 
     have lost their jobs. Just last Friday, the Bureau of Labor 
     Statistics reported that in the last 12 months alone, 17,600 
     Steelworkers lost their jobs--not including the 6,000 so far 
     at LTV.
       And, of course, we now have 28 steel companies in 
     bankruptcy, including two of the very largest, LTV and 
     Bethlehem.

                            SNAPSHOT OF LTV

       1. 6,800 employees, + 2000 at LTV Tubular
       2. 70,00 Retirees, surviving spouses and dependents on 
     Retiree Health
       3. Legacy costs $1.5B
       4. Pension underfunding--$1/2 B

                              LEGAL STATUS

       Last week, on December 5, the Bankruptcy Court in 
     Youngstown, Ohio issued an order which carried out an 
     agreement made in Chambers--between the Company, its secured 
     lenders, its noteholders, the Creditors Committee and the 
     Steelworkers. I should note that Members Kucinich and 
     Latourette were very effective witnesses on behalf of 
     Steelworkers. The Court's Order, in effect, put LTV on a 
     limited life support system, on a respirator, in the 
     intensive care unit. The Order provides:
       (a) the Company's integrated steel units are to be 
     maintained in a form of hot idle until the President issues 
     Section 201 remedies by March, 2002
       (b) the coke plants in Warren, Ohio and Chicago are to be 
     held alive for 3 weeks
       (c) the Company is to support and cooperate in continuing 
     efforts to secure the Byrd loan, and to report back to the 
     Court on December 19--next Wednesday
       Where do we stand with the Emergency Loan Board?
       Let me start with a conclusion, and work backwards from 
     there.
       The power to save LTV, and the power to bury LTV rests in 
     one place--the Emergency Steel Loan Guaranty Board.
       Now, the question for the day is--what can the Steel Caucus 
     do, what can the Congress of the United States do, to move 
     the Loan Board to exercise its power to let LTV live--and not 
     exercise its power to pull the plug?
       There has been a considerable amount of finger-pointing and 
     blame assessment over

[[Page E2410]]

     the past few months--and there are many, many candidates for 
     the role of accessory-before-the-fact. But with all due 
     respect, the United Steelworkers of America believes this not 
     the time to pin the tail on the donkey for the closing of 
     LTV.
       This is the time, perhaps the last time, that something can 
     be done to avoid the catastrophic consequences of the closing 
     of LTV that you have just heard about from the steelworker 
     members of this panel.
       I'm going to spend a few minutes to support my conclusion--
     that the focus now is on the Loan Board--and then propose a 
     course of action--immediate action--for the Steel Caucus to 
     take.
       Here's where we are today.
       There is pending on the desk of the Emergency Steel Loan 
     Guaranty Board an application by the National City Bank, and 
     Key Bank, on behalf of LTV, for a $250 million loan guaranty.
       The application is supported by an analysis by the big 5 
     Accounting Firm of Deloitte Touche, for the Official 
     Creditors Committee of LTV, appointed by the Bankruptcy 
     Court, which states that the second, historic, labor 
     agreement negotiated between LTV's creditors and the 
     Steelworkers provides the following--and I quote: (1) ``the 
     Company is able to fully repay the Byrd Loan by the end of 
     2005,'' (2) ``the Company is projected to maintain positive 
     liquidity over the five year period with a low point of $35M 
     in 2002''.
       Thus, the Loan Board has been told by one of the most 
     highly respected Accounting firms, one of the ``big 5'', that 
     its primary concerns have been met--that, if the $250M loan 
     is made, it will be paid back as the law requires; and the 
     Company will have the liquidity, the cash on hand, to carry 
     on its business.
       Until now, there has been buck passing. From Management of 
     LTV to its banks; from the Byrd Bill banks to the DIP 
     lenders; then to the Union. And back and forth. Now, buck 
     passing is over, and there is one--and only one, focus. The 
     Loan Board has the power to keep LTV alive, so that efforts 
     already under way to help the entire industry (by addressing 
     the illegal dumping, by addressing legacy costs) have a 
     chance to click in. If the Board fails to act, it will have 
     pulled the plug before the doctor has had a chance to 
     operate.
       Finally, what must be done? The Steel Caucus, and the other 
     members of Congress, must convey to the members of the 
     Emergency Steel Loan Guaranty Board, that the will and intent 
     of Congress in the Emergency Steel Loan Guaranty Act of 1999 
     was that instances like LTV are precisely the instances where 
     guaranty should be issued. The Board must be told, 
     forcefully, that the time to act is now, and that the 
     Guaranty should be issued forthwith.

     

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