Key negotiations begin in basic steel industry

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Bosses pit worker against worker Last fall steelworkers came to the defense of the locked-out Wheeling-Pittsburgh steelworkers. They organized rallies around the country, chartered buses for demonstrations in Steubenville, Ohio; Monessen, Pa.; and Pittsburgh. And they contributed money. Most steelworkers viewed the bosses' attacks on WheelingPittsburgh workers as a test run for the 1986 basic steel negotiations.

Top executives from U.S. Steel Corp., the nation's largest steel company, said they were watching these negotiations closely and would demand whatever concessions the union gave Wheeling-Pittsburgh. But United Steelworkers of America (USWA) officials tried to reassure steelworkers that Wheeling-Pittsburgh was a special case. They said that serious concessions were necessary to keep Wheeling-Pittsburgh operating, but that similar concessions would not be given to other steel companies.

In preparation for this year's negotiations, the USWA commissioned Locker/Abrecht Associates to do a study on the steel industry. The results, "Confronting the Crisis: The Challenge for Labor," were released Dec. 16, 1985. The report draws three basic conclusions:

• "First, the industry is in deep trouble and things are not going to get better on their own. Import and mini -mill competition have captured a good part of the market and the Reagan administration's policies have severely damaged the industry.

• "Second, some major companies face an immediate crisis as a result of large losses sustained over the last four years. Unless they receive relief in the near future from all parties, there is a real possibility they will face bankruptcy and possible liquidation.

• "Third, the longer-term prospects for recovery are dim, especially if desperately needed government support is not forthcoming under the Reagan administration."

LTV, Bethlehem, and National Steel approached the USWA asking for early negotiations for a new contract to replace the current agreement, which is due to expire Aug. 1. Despite their earlier assurances to the membership, the USWA agreed.

TOLEDO, Ohio-It's called divide-andconquer and it is happening at American Motors Co. (AMC). The company has been using laid-off workers from its Alliance plant in Kenosha, Wisc., as pawns in a maneuver designed to pit United Auto Workers locals in Kenosha and in Toledo against each other in a scramble for jobs.

Approximately 500 workers from Kenosha, some with up to 13-years seniority, have taken jobs offered at the Toledo Jeep plant. They were given the understanding that after one year of work they would be eligible for an additional three years "corporate seniority" at the Toledo plant.

The Jeep plant here in Toledo has already been hard hit by a decision to end production of the classic "CJ" Jeep vehicle, 5 SOCIALIST ACTION MARCH 1986 at Toledo's AMC Jeep plant which has meant the loss of 1000 jobs. In this context, the latest management maneuver has bred hostility between Local 12 in Toledo and Local 72 in Kenosha.

This situation, where many Local 12 members in Toledo have received their pink slips while workers from Kenosha hold onto jobs, led to an eruption of antiKenosha hysteria that reached citywide proportions. In one case, a lunch-time demonstration of Toledo employees attracted several hundred people, complete with banners and anti-Kenosha T-shirts.

Many of the workers from Kenosha who work at Jeep are likewise bitter. The company had initially told them that they Top LTV executives began their presentation to local union presidents by declaring they could be forced into bankruptcy proceedings if they paid the wage increases still due under the current agreement. They asked for an immediate freeze on the 45-cents-per-hour raise and 5cents-cost-of-living payment due Feb. 1. The company also demanded a $5-per-hour reduction in wages and benefits in the new contract.

The Locker/Abrecht report suggested that no concessions be granted unless a company opens its books for the union. After LTV agreed to an independent audit, top union officials agreed that the company's financial woes merited a suspension of the raises mandated in the last contract.

On Jan. 31, an interim agreement between the USWA and LTV was signed. Only seven local union presidents voted against this agreement, which provided that the raises due the next day be placed on hold until April 1. In the event a new agreement is not reached by that date, the raises will be paid retroactively.

Although Bethlehem also asked for a suspension of the Feb. 1 raise, local union presidents turned down the request. LTV steelworkers thus joined WheelingPittsburgh steelworkers as the only workers in basic steel not receiving this raise, which would have returned their hourly earnings to the January 1983 level.

Membership's right to vote In January 1986, presidents from all basic steel locals in the United States met and decided that this year's contracts will be put to a vote of the membership. Previously, only local union presidents voted on the contracts.

Rank-and-file ratification of contracts has been a traditional rallying point for oppositionists in the union. It was one of the main issues in Ed Sadlowski's unsuccessful 1977 campaign for USWA international president.

But many steelworkers view the international's sudden support for their democratic rights with suspicion. They expect that a concessions contract could be rammed down their throats as the international officers piously declare that they're only abiding by the democratic choice of the could accumulate seniority rights in both plants simultaneously. Now the workers are being forced to sign a statement that gives them two hard choices. They can keep their three-year corporate and Jeep seniority and renounce all of their Kenosha seniority. Or they can renounce their corporate seniority and return to the unemployment lines in Wisconsin.

Many think that the company is pressuring the workers from Kenosha to stay in Toledo so that new people can be hired in Kenosha under a lower-wage, two-tier agreement.

The company will seek wage has also announced that it and benefit cuts from its LTV and the union agreed to joint lobbying efforts for import restrictions and a weaker dollar to give domestic steel a price break.

The company doesn't even pretend that its concessions demands will prevent plant closings and job combinations. Steelworkers at LTV's Warren, Ohio, works were recently hit with an ultimatum: Either offer a proposal to eliminate 400 jobs or have the plant shut down.

Like other workers, steelworkers will not be able to stem the concessions tide and fight back against the constant attacks on their standard of living until they realize that their interests are opposed to those of the bosses.

What's good for LTV Steel is to work the fewest possible number of workers under the least safe working conditions for the lowest possible wages and benefits. Workers must learn that only their collective power can prevent this and turn around the bosses' concessions drive.

If top USWA officials succeed in convincing LTV steelworkers that further concessions are necessary to save "their" company, this will strengthen the hand of the other steel barons in this year's contract negotiations and set off another round of concession bargaining in other industries.

Rather than using its resources to promote concessions to steel companies, the USWA should use them to prepare the membership for a fight for an improved contract. Such a campaign would speak to the real needs of steelworkers and—as the struggles of the WheelingPittsburgh workers and the Hormel packinghouse workers show-win support from other working people.

HD THIS MILEY employees. In March it plans to unilaterally reopen the Jeep contract, despite the fact that the present three-year agreement is only a year old. Also on the agenda in March is the so-called Employee Investment Plan (EIP), which expropriated some $40 million from Jeep workers alone from 1982 to 1985. The company had promised to begin repaying this money last year, but now refuses to do so.

It is a bad situation at the AMC Jeep plant, with union members fighting each other for jobs. So far, AMC has been able to turn up the heat without facing the fire. Unfortunately, the union leadership appears confused, disorganized, and overly preoccupied with legalities, lawsuits, and arbitration procedures—instead of a massaction approach that could unify employed and unemployed workers in a common fight to defend jobs and union contracts.

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ACTION fix: HORMEL FOW 7. 41 P.3 ON IKE!

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