[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Pages 5399-5400]
[From the U.S. Government Publishing Office, www.gpo.gov]




         STEEL INDUSTRY RETIREE BENEFITS PROTECTION ACT OF 2002

  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,

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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.
  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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