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Bush's war against labor
RTI steelworkers won a major victory when Judge Peter Economus
ruled Sept. 30 that the Pension Benefit Guarantee Corporation (PBGC), the
federal agency set up to protect worker’s pensions, illegally refused to pay
pensions when RTI shut down. “This ruling just gives those workers some small bit of the justice that they
deserve,” Steelworkers President Leo Gerard said.
The decision culminates a 15-month battle. RTI had been operating for over a
year in Chapter 11 bankruptcy. Under the existing labor agreement, workers who
had 20-30 years of service would receive immediate pensions (termed “shutdown
benefits”) if the company shut down. The PBGC had done just that at nearby LTV
Steel in Cleveland when that company faced the same situation.
All that changed, however, when President George Bush fired the director of the
PBGC and appointed right-wing ideologue Steven Kandarian to head the agency.
When RTI shut down in August 2002, Kandarian’s first official act struck
steelworkers, in Ohio, Pennsylvania, Indiana, Illinois, New York and Hamilton,
Ontario, like a terrorist blast. Instead of receiving the pensions that their
contract guaranteed them, the PBGC declared June 2002 the “official”
shutdown date. This action was unprecedented, taken only to deny pensions to
workers with between 20-30 years’ service.
The USWA launched a campaign to fight for the workers’ pension rights. A
lawsuit was filed against the theft of the workers’ pensions. A series of
local rallies was organized, culminating in an angry demonstration of 1,000
steelworkers at the federal courthouse in Youngstown, Ohio, when the lawsuit was
introduced. That demonstration included hundreds of motorcyclists who roared
around the courthouse, stopping all traffic.
Hundreds of resolutions were passed by city councils supporting the workers, and
local representatives sent letters to the PBGC demanding the workers’ pensions
be paid. Members of Congress organized hearings to support the workers. The court’s ruling finally answered the workers’ call for justice. “The
judge ruled that our members’ strong reliance on the shutdown benefits that
were due them outweighed the PBGC’s bottom line,” Steelworkers attorney
David Jury said.
It has been an extremely difficult 15 months for the RTI workers. Five RTI
workers committed suicide after the PBGC stole their pensions. The first worker
to do so, Jay Schoeder, had 29 years of service. He was the brother of the
Schoeder boy who had been killed by the National Guard at Kent State in 1969.
Auggie Waldron, 28-year steelworker, fell dead in October 2002 after reading his
mail, which stated the company was cutting off his medical benefits. He had been
slated to testify at a special hearing with Rep. Sherrod Brown (D-Ohio).
Gary Schmitz, Lorain steelworker who was burned over 60 percent of his body in a
blast furnace explosion, and then had his pension and medical benefits stolen,
was happy for the victory, but cautious. “I just don’t get excited anymore,”
he said, “I’ve been screwed too much. I know this is a victory and I’m
happy, but I don’t trust the courts. The main thing is we’ve got to get rid
of Bush!”
“I’m extremely happy. Just tickled pink,” said Dash Sokol, president of
USWA Local 1104 in Lorain, Ohio. “Our members have had a long fight. It’s
just great to win round one.” The joy is tempered with concern, since the
PBGC, an arm of the Bush
administration, has already stated that it intends to appeal the decision. “Still,
it’s a big victory,” said Jim King, a 28-year Lorain steelworker. “This
shows that workers fighting for a just cause can win, even in this negative
political climate.”
Local papers in the steel towns were reporting that an appeal could take another
year and a half to reach resolution, making the issue of pension rights a major
issue in the upcoming presidential election. “What really angers me,” said
Patti Reich, 26-year steelworker from Canton, Ohio, “is that Bush wants $87
billion for his war in Iraq while we starve here. Most of us are running out of
all benefits and those pensions are ours, not his. We have to fight to get him
out.” “Our commitment to our members remains the same,” said Dave McCall, Director
of Steelworkers District 1, “We’ll see this fight through to final victory!”
The author, a steelworker who had 29 years, 11 months service when the PBGC
stole his and others’ pensions, is now working for the USWA on special
projects. He can be reached at bruce@admiral.cc
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