LTV Steel retreats under strong union pressure

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Immediately after filing for Chapter 11 bankruptcy on July 17, company officials made clear that among the "creditors" LTV planned to protect itself against were the retirees. Each pensioner received a letter stating that under federal bankruptcy laws, the company had no choice but to cancel all insurance benefits for those who had retired prior to July 17.

In testimony before a special Senate Judiciary Committee hearing on July 28, Harvard Law School bankruptcy expert Vern Countryman refuted this company contention. He stated that he saw no possible interpretation of the federal bankruptcy statutes which would permit the company to unilaterally cancel this portion of its collective-bargaining agreement. He added that two recent Appeals Court decisions confirmed this.

LTV retirees in Cleveland, Youngstown, and Chicago organized large, spirited rallies. In East Chicago, Ind., retired steelworkers set up informational picket lines outside LTV's Indiana Harbor Works. As the company continued to insist on its "obligation" to cancel these benefits, steelworkers at Indiana Harbor took a strike authorization vote. This was soon followed by a sanctioned strike at this particular mill.

On Monday, July 28, the TV Monday, July 28, the USX fightback (continued from page 1: “USX demands takebacks; Steelworkers locked out”)

USWA negotiators describe competitive wages as the industry average, USX executives interpret "competitive" as equaling the lowest wages in the industry -Wheeling-Pittsburgh and McLouth.

"Contracting out"

The major concern in this year's basic steel negotiations was "contracting out." Over the past three years, steelworkers have seen thousands of jobs lost as outside contractors have been brought in to perform maintenance and janitorial work, and steel has been sent out to be split or plated.

Although other basic steel contracts negotiated this year contain serious wage and benefit cuts, they include improved language on contracting out. In fact, hundreds of steelworkers have been returned to work under this new contract language.

USWA negotiators have demanded that USX offer similar contracting-out language. USX, which flagrantly violated the contracting-out provisions of the old contract, has refused to even consider similar improved language in the new contract.

Despite the padlocked gates, USX is contesting workers' unemployment compensation claims, denying it is a lockout. Steelworkers are hopeful of receiving these benefits in a number of states. In Pennsylvania, late last month, a negotiating committee, which had reached a concessionary agreement with LTV Steel earlier this year, was called to Pittsburgh for an emergency meeting. USWA attor -neys explained that any strike called in response to the company's violation of this major portion of the contract would be a legal strike over an unfair labor practice.

The decision was announced that unless the company agreed to reinstate the retirees' benefits by midnight, Aug. 1, steelworkers at LTV's two other modern, profitable mills-Cleveland and Hennepin—would join their brothers and sisters from Indiana Harbor on the picket lines.

USWA International President Lynn Williams explained that more than solidarity with the retirees was at stake. He said that if the company succeeded in this attack, it would only be a matter of time before it canceled other portions of the contract. On the other hand, he stated, if steelworkers demonstrated their resolve to stay out until all benefits were restored, the company would think twice before doing SO.

Strike preparations began

As soon as the negotiating committee members returned from Pittsburgh, strike preparations began as each local union called an emergency executive board meeting late Tuesday night or early Wednesday morning. Strike committees and judge ruled the steelworkers had been locked out and were entitled to unemployment benefits. In addition, the federal government classified USX's action as a lockout, thereby authorizing food-stamp benefits to the workers.

Police attack in Gary USX has provocatively tried to ship steel out by rail at some locations. Pickets in Lorain, Ohio, effectively stopped such an attempt. However, in Gary, Ind., police arrested pickets, allowing steel through the lines.

Prior to the lockout, local union officials in Gary came across an unusual company invoice-for tear gas and grenade launchers. Company officials hastened to say this was a mistake, that they had never ordered any such equipment.

USX supervisors around the country have received word to be prepared to go to Gary. Rumors circulated that the company planned to use these bosses to restart its Gary Works. Although no such efforts have begun, steelworkers from other cities came to a rally on Aug. 12 to express their determination to stop any such attempts.

While USWA negotiators continue to offer more and more of the workers' hard-won gains, and US officials continue to arrogantly demand even more concessions, USX steelworkers are demonstrating their willingness to resist the company's attacks. They expect a long and bitter struggle, but are confident that USX's union-busting assault can be turned around. with our picket captains were selected. Special meetings were set up to brief local union officers on strike benefits. On Wednesday, July 30, the company was formally notified of the union's decision, as plans for an orderly shut-down were discussed.

Company officials hoped to use USX's planned lock-out to increase LTV's share of the steel market. Promising customers an uninterrupted supply of flat-rolled steel, they had secured promises of up to 50 percent of USX's automotive orders.

Realizing that the steelworkers were serious about making sure this couldn't happen so long as the company refused to live up to its contractual obligations, they retreated. On Wednesday, July 30, LTV's attorneys petitioned the federal bankruptcy judge to allow them to reinstate the benefits for six months.

That same evening, the U.S. Senate met to ratify legislation which would force LTV to pay the benefits. A similar bill is expected to pass the House shortly.

LTV steelworkers understand that it was their determination which forced the company to retreat. At the same time, they realize it is only a matter of time before the company either approaches the union for additional concessions or again tries to unilaterally change the contract. However, this recent victory has left these steel -workers much more confident that they can defeat these corporate attacks.

* 03 PLANT PLANT 89299 352: 222228802 Jim Guyette, president, local speaks at rally protesting USX lockout in Gary, Indiana.

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I KED U.S.W.A.

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