Socialist Action (US)

The monthly paper of Socialist Action, San Francisco, 1983–2010

LTV Steel forces big union concessions

Socialist Action, Vol. 4, No. 5, May 1986 · scan p. 6 · Marie Weigand · about 1,165 words

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On April 4, slightly over 60 percent of steelworkers in LTV local unions voted to approve a new 40-month concessionary agreement between the United Steelworkers of America (USWA) and LTV Steel Corporation. The official vote count was 13,162 in favor; 8474 opposed.

The majority of steelworkers in 30 local unions voted in favor of the agreement while those in eight local unions turned it down. Strongest support came in those locals whose plants were largely shut down, with the largest "yes" vote coming from locals in Aliquippa, Pittsburgh, and Youngstown. Local 1211,, at LTV's Aliquippa works, voted 2707 to 137 to approve the new agreement.

LTV's two most modern facilities, Cleveland and Indiana Harbor, have been working near full capacity for some time. Workers at three of the five large Cleveland locals were among those rejecting the new contract.

The new agreement contains serious con -cessions estimated to average $3.15 per hour in wages and benefits. These givebacks include the following: loss of the 45-cent-per-hour "raise" due Feb. 1, which would have returned wages to their 1983 level; an additional average $1.14-per-hour direct wage cut; lower Sunday premium and shift differential pay and accident benefits; elimination of three paid holidays; loss of one week vacation by all workers entitled to two or more weeks; and changes in insurance coverage, including elimination of vision care and doubling of majormedical deductibles.

Throughout the negotiations, LTV Steel pointed a gun at the union's head, threatening not to return to the negotiating table if the membership turned down this offer-even though the old agreement didn't expire until Aug. 1. Instead, LTV threatened to file Chapter 11 bankruptcy the following week.

Rather than stand up to this blackmail, the USWA International went on an all-out campaign to convince steelworkers that the gun was loaded and that calling the company's bluff would result in disastrous consequences.

Jim Smith, special assistant to USWA President Lynn Williams, typified this hard-sell campaign when he told a Cleveland contract explanation meeting, "Very frankly, this company is in serious trouble. With this agreement, I think there's a good chance of saving the company. The best interests of the average employee and the average retiree are served by staying out of the bankruptcy courts."

The union's entire negotiating approach was based on the assumption that what's best for the company is best for steelworkers. A letter sent to all LTV workers signed by Tony Rainaldi, head of the USWA negotiating team, explained that unlike previous negotiations where the union had negotiated for better wages and benefits, this* time the union was negotiating for the survival of the company.

The International organized a series of contract explanation meetings around the country. These meetings showed the widespread discontent with the new contract. In Cleveland, both the morning and atternoon meetings drew 800 to 900 workers. An impromptu picket line urging a "no" vote greeted those arriving for the morning meeting. Some brought signs urging a "no" vote into the meeting.

At the afternoon session, District Director Frank Valenta introduced chief negotiator Tony Rainaldi and asked that "we all give him a warm Cleveland welcome." A few polite claps were quickly drowned out by an overwhelming chorus of boos.

Shouts of "vote no," "send it back for more negotiations," and "shut 'em down" were periodically heard. When the International representatives described the profit-sharing/stock-option plans, derisive cries of "if, if, if" rang the hall conditions were listed.

Some of the ballots also expressed the frustration and anger felt by many steelworkers. These included messages explaining why they'd voted no. However, even some of the "yes" votes included such messages as "yes, but this is the last time" and "yes, but you'd better not ask for any more."

The agreement passed because the company and the union were able to convince the majority of LTV workers that the company was serious in its game of Russian roulette. The contract includes improved language on contracting out, grievance procedure, and seniority rights for workers from closed departments. These positive features were enough to assure a "yes" vote from those who believed the gun was loaded.

Improved language

Finally, to assure passage of the agreement, special early retirement and separation-pay allowances were offered to those workers whose plants or departments are indefinitely shut down. It was estimated that 7000 to 10,000 workers would benefit from these provisions. This accounts for SORRY NO JOB NO APPLICATIONS WILL BE GIVEN OUT HOURS 540100093601 SION T7H** #PEN N0OX 04MT CAUSED # 14 1PM TO SPM definitely not lost. the overwhelming "yes" votes from Aliquippa, Pittsburgh, and Youngstown.

Rainaldi told the press he was pleased with the vote and said the victory margin was much higher than he expected. But this vote does not reflect agreement with the union's concessionary approach.

• Although an organized opposition to the International leadership's policies does not exist, the anger and frustration expressed at the contract explanation meetings around the country show it is only a matter of time until a movement develops to make the union once more fight in the interests of its members.

As we go to press, the USWA has reached a tentative agreement with National Steel Corporation calling for wage and benefit concessions averaging $1.51 per hour, including a 31-cent-per-hour wage cut and elimination of cost-of-living increases. Results of a vote on this concessions package will be announced April 28.

Still ahead are negotiations with Bethlehem (where the company is also claiming near bankruptcy and attempting to force the union to negotiate separate agreements for the smaller plants), Inland, and US Steel. problems, but they're of their own making. They've failed to invest in modernization. Instead, they've invested in other industries and other countries.

We need to rebuild the infrastructure of this country. If the federal government had its priorities in order, there'd be a demand for steel which would create jobs. But, instead of rebuilding decaying roads and bridges, they're spending money on the Pentagon and aid to the contras.

I'm in favor of eminent domain actions to prevent steel mills from closing. If necessary, the steel companies should be nationalized to meet the real needs of the American people.

I think the union really has to make some decisions about what kind of union it's going to be. It has to seriously look at the direction it's heading in or we won't be a union. We'll just be a dues-collection agency. We need to seriously protect workers' rights and jobs.

I'm not sure the International leadership is on the right track politically when they talk about Congress and foreign imports. They're putting all their eggs in one basket, using the Reagan administration as a handy excuse for all their problems.

We need to take a stand that workers won't take any cuts in the benefits they've struggled 50 years to win. Now, the union's stand is to compromise. It's been proven this won't save jobs and prevent shutdowns. We need to turn this around.

← Contents of Vol. 4, No. 5, May 1986

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