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17 October, 2001The U.S. Steelworkers say the government's inaction on steel is undermining the country's economic and national security.
USA: On October 15, 2001, Bethlehem Steel Corporation, the second-largest integrated steel manufacturer in the U.S., announced it had filed a voluntary petition for Chapter 11, stating it "could not overcome the injury caused by record levels of unfairly traded steel imports and the slowing economy that have severely reduced prices, shipments and production." Thus, Bethlehem becomes the twenty-sixth American steel company to go into bankruptcy since 1998.
In a press statement released by the IMF-affiliated United Steelworkers of America immediately following Bethlehem's announcement, the union's president, Leo Gerard, declared that this bankruptcy "should make it clear beyond all doubt that the government's continued failure to provide relief to the steel industry is destroying an industry that is a cornerstone of America's security."
According to the USWA, over 27,000 U.S. steelworkers have lost their jobs since 1998, of which over 14,000 were lost this year, and an additional 15,000 jobs are now at risk at Bethlehem, as well as the benefits of 130,000 retirees and their dependents. Moreover, 45,000 jobs are threatened in companies which depend for their business on Bethlehem.
Gerard is urging three critical measures be taken to prevent the complete collapse of the American steel industry:
In a press statement released by the IMF-affiliated United Steelworkers of America immediately following Bethlehem's announcement, the union's president, Leo Gerard, declared that this bankruptcy "should make it clear beyond all doubt that the government's continued failure to provide relief to the steel industry is destroying an industry that is a cornerstone of America's security."
According to the USWA, over 27,000 U.S. steelworkers have lost their jobs since 1998, of which over 14,000 were lost this year, and an additional 15,000 jobs are now at risk at Bethlehem, as well as the benefits of 130,000 retirees and their dependents. Moreover, 45,000 jobs are threatened in companies which depend for their business on Bethlehem.
Gerard is urging three critical measures be taken to prevent the complete collapse of the American steel industry:
- Congress must pass a $1 billion annual package to ensure coverage of health care benefits for the steel industry's 600,000 retirees and their dependents, 130,000 of whom have been put at risk because of the Bethlehem bankruptcy.
- Once the International Trade Commission rules on the injury phase of the Section 201 trade petition, strong remedies should be recommended to the White House and immediately implemented by the president.
- Congress should immediately increase to $5 billion the loan guarantees available under the Emergency Steel Loan Guarantee programme.