RESTRUCTURING =

                     Higher Standard of Living

                                                 For Steelworkers

The agreement negotiated in May of 2003 between U. S. Steel and the United Steelworkers established jobs that included a broader range of duties and responsibility and a profit sharing plan that raised the standard of living of Local 1899 members by approximately fifteen percent (15%), not including hourly wage increases.  This increase in our standard of living has been consistent from 2004 through the present day.  Our quality of life should have been improved significantly depending on how each and every one of us managed those dollars.  In 2008 we will again find ourselves at the bargaining table.  As a union, our members must stand in support of the Local 1899 bargaining committee if we are to be successful in negotiating a new labor agreement which will provide the standard of living to which we have all become accustomed.  Our members must realize U. S. Steel only writes the checks – it is the union that secures the quality of life we have grown to expect.  We must renegotiate the following items:

1. Healthcare (medical, hospitalization, dental, vision)
2. Pension
3. 401k
4. Wages
5. Profit Sharing
6. Sickness and Accident
7. Sunday premium
8. Overtime
9. Safety
10. Seniority
11. Vacations
12. Grievance procedure
13. Arbitration
14. Training
15. Bidding rights
16. Contracting out language
17. Local working conditions
18. Layoff and your right to be recalled language
19. Successorship language – in case of buyout/takeover
20. Safety shoe allowance
21. Hours of work
22. Employment security
23. Incentives
24. Shift premium
25. Holidays
26. Funeral leave
27. FMLA
28. Justice and Dignity

This list is not all-inclusive but are a portion of the items that are important to each and every one of us and our families.

As president of Local 1899, I commit to each member that as chairman of our bargaining committee we will enter negotiations relentlessly in an all out effort to protect what is ours and bring home a contract that secures the future for our families and our community.  The increased productivity at Granite City has made U. S. Steel a leader in the global market.  They have earned approximately six billion dollars ($6,000,000,000) from operations since the first quarter of 2004.  The way I see it, they owe us a lot more money.  Just remember we make the steel and control operations in all of U. S. Steel’s domestic facilities.  A new labor agreement will require sacrifices from your bargaining committee.  These sacrifices will range from long hours and days at the bargaining table to weeks and months away from our families.  All that I ask from you is to stand up in support of your union and its leadership so that we may persevere in securing what we in the union consider to be our God given rights.

 In solidarity,

 Russ

______________________________________________________________________

Attention “ Free Rider$”:

The next time you hear a union brother or sister badmouthing our union, challenge them to sign this pledge and see what happens!

“I am opposed to all unions.  Therefore, I am opposed to all benefits that my union has won through the years:  paid vacations, paid holidays, sick leave, seniority rights, wage increases, pension and insurance plans, safety laws, Workmen’s Compensation, Social Security, time and a half for overtime, unemployment benefits and job security.  I refuse to accept any benefits that will be won by future union negotiations with my company and I hereby authorize and direct the company to withhold the amount of the union won benefits from my paycheck each payday and donate it to charity or pay it to shareholders or executive bonuses.”

If they sign it, please bring the original copy to my office.

______________________________________________________________________

The Working Class…

Not What It Used To Be!

Back in the early nineteen hundreds the American workers and their families lived in poverty, usually dependent on the company they worked for to provide them with housing and food.  During the 1930s workers began to rise up and demanded companies treat them with respect and dignity.  But companies did not automatically grant this; they would usually beat and literally kick the worker and his family out on the street with little or nothing.

The average U. S. citizen living in this period of worker domination soon realized they needed a union to bargain better wages and living conditions.  The American worker began fighting back, staging general strikes and winning battles they had thought were impossible to win.  Corporate America began to realize they would have to deal with the worker and their unions.  Strikes were staged throughout America by the United Steelworkers of America, the United Auto Workers, United Mine Workers, United Rubber Workers and too many more to mention.  The American worker would finally benefit from the Industrial Revolution in America something that had for a long time only benefited corporate America and the U. S. Government.  With solidarity and brotherhood, these unions won Social Security, unemployment benefits, overtime pay, pensions, medical insurance and everything else we as card carrying union members enjoy today.

The American worker in the 1930s and 40s made the economy work for them, not the opposite, which we are now enduring in a country whose economy generates roughly $13 trillion dollars a year income.  As American workers we deserve a larger piece of the pie.  But guess what?! Our employers are not going to just hand it over to us; we will have to take it.  And in 2007 it is not only taking what we need to survive, but we are constantly fighting to hold on to what we have had for years.  We have been in survival mode since the early 1980s.  It all started with Reaganomics when our government decided the market should be left alone, with free trade and deregulation.  We are now seeing the results and it doesn’t take a rocket scientist to figure out it isn’t working.  The average corporate executive makes 411 times what the average worker does.  In 1960 that was 41 times the average worker’s wages.  The American people have to understand this just didn’t happen overnight and that politics and our economic well-being are not separate things.  The economy doesn’t just happen.  Government makes the rules.  Those rules once served our interests, but not anymore.  For the most part the U. S. government in the 1940s through the late 1960s catered to unions and the working class, but since the early 1970s has taken care of only the corporate needs.  The US worker has proven to be the most productive worker in the world.  We work longer hours than any other developed nation, yet our government turns their back on us.  Workers at one time in this country shared in the benefits of economic growth.  Today workers are being left behind and the basic understanding between companies and their workers (unions) has fallen apart. 

Now more than ever in American history, we need to get involved with the political process.  The process (elections) determines who gets taken care of, whether that be the average American or corporate America.  Excuses like “I don’t vote because my vote really doesn’t matter” are what got us in this position today.  We must stand up and tell legislators what we want and expect of them.  We must not be afraid to stand up and speak up for our union whether it is in church, at school or just in our neighborhoods and communities.  The union negotiated what you and your family enjoy today, even if you are not willing to admit it.  The financial security you and yours enjoy has come courtesy of the United Steelworkers and the brothers and sisters who worked in these mills well before you were even a twinkle in your daddy’s eye.  So my message to you is to stand up for what you believe in and voice your opinion in your community, but most of all please support your union.  Without the membership’s support, we are weak and these companies know that.  As I have stated many times before, the union is only as strong as its membership.  The comments made on the shop floor everyday by the membership of 1899 is the gauge the company uses to determine what they are up against in negotiations.  Let’s not accept what they give us – let’s take what we know we deserve!

In solidarity,

Russ Saltsgaver

President

Seniority – Dead or Alive?

Whether you are for seniority or not will not determine its final fate. The U. S. Steel Board of Arbitration will have the final say. They have already laid the groundwork for the union to triumph in two (2) previous cases. In USS #44,066, a case out of Midwest Local 6103 and USS #44,083, a Local 68 case, the arbitrators found that employees may exercise their plant seniority for repetitive routine assignments within their job (box) and straight shift preferences where they are available. They go on to say the company cannot unreasonably resist implementing seniority preferences provided for in the Basic Labor Agreement because it wants to continue to be unfettered in making individual assignments. At some point if training ceases for a considerable period of time and there are not concrete plans for resumption, it may be appropriate to conclude stable operations exist and employee preferencing can be implemented without affecting efficiency. 

The only problem with both of these cases is that the local unions filed them too early, within a few months of the effective date of the new labor agreement and the arbitrators concluded the company did not have time to stabilize operations. The next step for the union should be to schedule another seniority case to be heard in front of the U. S. Steel Board of Arbitration. A more current case where an arbitrator cannot rule the case was appealed prematurely. Only then will U. S. Steel completely understand what they are up against.  

The chairman of our negotiations is Tom Conway who has feverishly worked to settle the dispute over seniority with U. S. Steel Corporate Human Relations Representatives, but to no avail. They have come close, but in all reality it is to U. S. Steel’s favor not to work this out. They are the best in the industry at dragging their feet and stalling as long as possible until a third party tells them how it is going to be. So we might as well arbitrate the seniority issue again and again until we shove it down their throat. For now we still have seniority applications for vacation allotments, bidding on jobs and preferencing in some areas. We should not rest until we force U. S. Steel to live up to their end of the bargain. If seniority is not settled by 2008 negotiations, expect it to be the union’s number one issue at the bargaining table. 

The Fight for Union Steel

By Russ Saltsgaver_______________________________

Since 1892 the men and women in the American steel industry have had to battle in order to succeed in life.  The history of our forefathers is rich in principle, especially loyalty to their fellow workers when the going got tough.  This loyalty and respect of fellow workers must be reborn if we are to succeed.  If not you should be prepared to accept whatever the company gives you.  This is a lesson that has been taught to us repeatedly throughout our history in the steel industry.  It does seem that at some point we would remember the hardships our forefathers persevered to protect the fruits of our labor.  We must stand together as one to preserve wages, healthcare, overtime pay and our steelworker pension trust.  These things have been fought for at some point in the history of the United Steelworkers and are still worth fighting for. 

If you read the newspaper or watch television, you know corporations are attacking workers’ healthcare benefits, pensions and wages.  In the very near future you may be one of the Local 1899 members whose contract is coming due.  We as a labor organization must decide what we are willing to fight for and then stand toe to toe against management to protect what is ours.  Healthcare you can bet will be the main issue of contention in any round of contract negotiations.

Another battle looming in the near future is one that is all too familiar.  Imports, China in 2003 had 150 million tons of steelmaking capacity and by the end of the year in 2008 they will have doubled that to approximately 300 million tons.  Hopefully they can use all 300 million tons but I seriously doubt it.  The excess capacity will be imported somewhere and I’m sure you know where that will be.  What is even more problematic is that China can make a ton of steel for approximately $145.00.  That’s about half of what it costs American steelmakers.  This is a major problem for America and all industrialized nations.  Without protection we can not compete with slave labor and a government that poisons its own population.  Congress must wake up and smell the coffee.  It is imperative that working class Americans go to the polls in November 2006 and 2008 and vote for candidates that will stand up for America and what is right for the working class.  Tax cuts for America’s top 1% of all wage earners is not what I’m talking about.  I guess what I am trying to tell you is the fight to make union steel and have good paying jobs is far from being over.   Put on your game face, educate your family on the issues and pray to God the United Steelworkers remains a strong labor organization.  I have confidence in you and our international union, but it will take each and every one of us to keep inviolate our principles.

The following is a time line of our prior battles.  Some of you may already know our proud history, but a lot of you will be reading the dates and events for the first time.  Feel free to use the internet or whatever source you may have to learn more about the following events:

1892 – Homestead strike – Pittsburgh  The amalgamated association of iron, steel and tin workers broken by Andrew Carnegie.  While unionism was broken in big steel, the amalgamated survived in Granite City and became strong and very powerful.

1919 – Basic labor rate averaged 46.2 cents per hour for an average seventy-four (74) hour work week.  In September of that year steelworkers across the country went on strike to win union recognition and abolition of the twelve (12) hour turn.  The strikers were broken!

1936 – Steelworkers organizing committee created. 

Organizers spread into steel towns across the nation.  Workers flooded into the union. 

1937 – U. S. Steel recognizes the USWA without a strike.  First contract included:

            * 10 cent wage increase and $5/day minimum

            * 8 hour day/40 hour week with time and a half after 8 hours

            * 1 week paid vacation after 5 years of service

            * seniority for bidding or decrease in force

            * July 4, Labor Day, Christmas holidays

1938 – Contract Expires –

 U. S. Steel proposes wage cuts.  USWA avoids wage reductions and secures new contract.

1941 – New U. S. Steel contract

            * 10 cent wage increase

            * time and a half for holiday worked

            * paid vacations:  1 week after 3 years, 2 weeks after 15 years

1942 – First USWA International Convention

            * time and a half for 6th and 7th consecutive day across work week

1943-45 Steel contract dispute before the war labor board

            * vacation: 1 week after 1 year, 2 weeks after 5 years

            * establish board of arbitration

1946 – Wage Re-opener

            * industry wide month long strike ends with union winning original demand of 18 ½                       cents general wage increase

1947-48 – Contract settlement included

            * 12 ½ cents wage increase

            * 3 weeks vacation after 25 years service

            * severance pay

1948 – USWA wins right to bargain over pension

            * historic case out of Local 1010 Inland Steel

            * National Labor Relations Board upheld the union’s right to force companies to                                      negotiate over pensions

1949 – USWA demands pensions!

Half a million steelworkers went on strike against 37 companies.  First pension agreement was reached with Bethlehem.  By November 11^th of 1949 all companies had settled.

Pension plan effective March of 1950

            * $100 minimum at 25 years and age 65

            * 5 cents an hour pension contribution split 50/50 between company and employee

            *  life insurance to continue after retirement

            * S & A benefits of $26 per week up to 26 weeks

1951 – USWA’s first victory in the contracting out arena

U. S. Steel case N-159, steel arb 777, arbitrator Sylvester Garrett:

Garrett stated that the contract creates an obligation on the company to refrain from arbitrarily or unreasonably reducing the scope of the bargaining unit.

1952 – In response to the USWA’s economic demands, the companies refused to make a counter proposal

            * facing a strike threat, the Truman administration seized control of the mills

            * June 2^nd supreme court ordered bargaining between the parties.  That same day 500,000           steelworkers walked off their jobs and shut down the steel industry

            * strike lasted 8 weeks until settlement was reached on July 26^th

1952 settlement

            *16 cents wage increase

            * 6 holidays with double time when worked

            * 3 weeks vacation after 15 years

            * established incentive earnings

            * union prevailed on all shop floor issues

1954 major new benefit improvements

            * minimum pension raised from $100/month to $140

            * better insurance agreement – employees pay 50%

            * life insurance from $1,000 to $3,000

            * S & A to $40 per week

            * surgical coverage negotiated

1955 - Shortest strike in industry history results in wage gains.

1956 – Steel companies bargain through a multi-employer association for the first time.  The union then bargained a single agreement which applied to each individual company.

1956 negotiations

            * 3 year contract

            * semi annual cola adjustments

            * shift premium increased

            * sub pay established at 52 weeks – 2 years service

            * Sunday premium established at 1 ¼

            * jury pay established

            * Good Friday added as holiday

            * improvements to all benefit packages

1959 – July 15^th strike began nation-wide

            * areas of disagreements were “work rules” and economics – no settlement in sight

            * October 21^st court injunction to end strike but was stayed pending appeal

            * November 7^th supreme court upheld the return to work order

            * strike then ended after 116 days

            * in late November the injunction set to expire January 28^th – the final offer went to the                membership for a vote

            * USWA began a “vote no” campaign

            * negotiations then resumed and a settlement was reached with the vote

            * the settlement protected what the members had fought for over the years

1959 Settlement

            * 13 week vacation established

            * employers pay 100% for insurance

            * pension improvements

1962 – Wage freeze negotiated

            * first provision prohibiting discrimination on basis of color, religion or national origin

1963 – New experimental agreement

            * limitations on contracting out

            * limitations on supervisors working

            * protections on the scope of bargaining unit

            * restricted overtime while members were laid off

            * contracting out committee established

1965 – 28 ½ cents wage increase

            * 2 job class addition established for trade and craft jobs

            * military leave established

            * employees’ right to union representation when called to meet with management

1968 contract negotiations

            * 1968 – 20 cents wage increase

            * 1969 – 12 cents wage increase

            * 1970 – 12 cents wage increase

            * survivor spouse benefit added

            * $30/week vacation bonus

            * 5 week junior group added to extended vacation plan

            * USWA establishes a strike and defense fund at $25,000,000.00

1971 contract negotiations

            * companies run full production – stockpiling

            * last minute 24 hour extension agreement averted a strike – settlement was reached the                           next day

1971 Contract settlement

            * 1971 – 50 cents wage increase

            * 1972 – 12 ½ cents wage increase

            * 1973 – 12 ½ cents wage increase

            * $1.00 per hour increase at job class 2

            * 50 cents increase in the incentive calculation rate

            * Sunday premium increased to 1 ½

            * huge pension increase

1974 – Consent Decree established

            * April 12, 1974 began using plant seniority for all purposes

            * International union made plant seniority a matter of policy

1974 Contract settlement

            * Wage increases:  1974 – 28 cents

                                           1975 – 16 cents

                                           1976 – 16 cents

            * 39 cents cola rolled into base rates

            * pension increased

            * early retirement reduced to age 62

            * new holiday – Washington’s birthday

            * penalty for supervisors working – 4 hours pay

            * grandparents and grandchildren added to funeral leave

1977 Contract negotiations

            * wages increased 70 cents over 3 years

            * employment security established for those with 20 years of service

            * earnings protection increased to 90%

1980 Contract negotiations

            * wages increased 60 cents over 3 years

            * shift differentials increased

            * pensions increased

            * first safety shoe program (2) $40 payments

1983 Contract concessions

            imports and company’s lack of investment of profits back into their facilities created this             need for concessionary bargaining

            * new agreement effective 3/1/83 – 8/1/86 - $1.25/hour wage cut in base and ICR to be                          restored over life of contract

            * Sunday premium reduced to 1 ¼

            * extended vacation plans eliminated

            * all employees lost 1 week vacation

            * cola suspended

1986 Contract negotiations

            * companies decide to bargain separately

            * USWA invokes pattern bargaining

            * historic contracting out protections

            * first no lay off guarantee

            * U. S. Steel refuses to accept new restrictions on contracting out of USWA work

            * U. S. Steel demanded more concessions

1986/87 U. S. Steel lock out of USWA

            * After a 6 month lock out the USWA was victorious winning identical contracting out                  language and refused to give concessions that U. S., Steel demanded.

1989 – USWA returns to bargaining for increases

            * companies had returned to profitability

            * wage increases of $1.50/hour were negotiated by the union

            * pensions were once again increased

            * the union negotiated the Institute for Career Development which has led to one of the                most successful and popular programs ever created by the USWA

            * payments up to $4,000.00 to surviving spouses depending upon when their spouse                    retired

1991 – USWA members working for U. S. Steel

               brought up to pattern contract which was negotiated at other companies in 1989

            * USS contract increased minimum pension to $1,500.00 per month

1993 – USWA adopts new direction bargaining policy

            * 6 year contract with re-opener in 1996

            * first 3 years include lump sum bonus in lieu of wage increases followed by a 50 cent                   increase in third year

            * second 3 years left open for re-opener with arbitration if no agreement reached

            * LTV and USS brought into common expiration with Inland, Bethlehem and National

1996 – Re-opener

            * no agreement reached at any company

            * arbitration only produced more lump sums in lieu of wages despite improving financial                            position of companies

            * USWA learns a valuable lesson

1998 – Asian financial crisis begins

            * steel dumping in U. S. accelerates

            * Stand Up For Steel goes into high gear

            * steel companies refuse to support USWA in securing relief in Washington, D. C.

1999 – Contract negotiations

            * USS and Bethlehem bargain jointly setting the pattern

1999 settlement

            * wages – 1999 – 50 cents

                             2000 – 50 cents     

                             2003 - $1.00

            * pension increases

            * benefit improvements

2002

            * ISG buys LTV and Acme plants

            * agreement with USWA results in ISG recall of former LTV employees by seniority

            * ISG contract resolved

            * National Steel bankruptcy results in Pension Benefits Guarantee Corporation takeover                           of pensions

2003

            * U. S. Steel buys National Steel plants

            * new contract covers both former USS plants and National plants

            * ISG buys Bethlehem plants and former Bethlehem employees brought under ISG                       agreement

2004

            * all USWA members at former LTV, National, Bethlehem and Acme plants brought                   under Steelworkers Pension Trust with full credit for retirement eligibility

2008 – Contract negotiations

            You now have a better understanding of our proud history in this union.  The questions is           where we will go from here.  It is definitely up to us!

TO ALL USW LOCAL 1899 MEMBERS

Ideology may separate us, but dreams and anguish will bring us together.

In solidarity,

Russ