Congressional Steel Caucus Hears Industry's Priorities and Concerns

Washington, D.C. – The Congressional Steel Caucus today held a hearing for steel industry leaders to share their priorities and concerns as it relates to the steel industry and this current session of Congress. Congressman Pete Visclosky, who is vice-chairman of the Congressional Steel Caucus, and the United Steelworkers of America share the same priorities of continuing fair trade policies that strengthen the domestic steel industry, as well as securing employee pensions.

“These hearings are vital in maintaining an open dialogue between the steel industry and the U.S. Congress,” said Visclosky. “My priority in Congress is to do whatever I can to keep our local steel industry strong, which translates into jobs in Northwest Indiana.”

In his testimony submitted at today’s hearing, Visclosky voiced his support of the recent extension of the Steel Import Monitoring Program, and pledged to continue working for trading policies that keep steel jobs in Northwest Indiana.

“As we move forward, it is important for this caucus to continue its efforts to ensure fair trade by pursuing responsible policies that enforce our antidumping and countervailing duty laws while addressing the continued threat that non-market economy subsidies and China’s currency manipulation present to the domestic steel industry and American jobs in general,” said Visclosky in his testimony.

Leo W. Gerard, International President of the United Steelworkers of America, also voiced his support for fair-trading policies and the need for retirement security for Americans who depend on employer-provided pensions and retiree health care.

“Viewing the defined benefit pension situation as a whole, the Steelworkers Union urges the Congress to take action that truly strengthens the system on which so many depend, said Gerard. “A defined benefit plan not only offers unique advantages to employees and companies, but it helps lift the savings rate in our country above its extremely low levels.”

STATEMENT OF THE HONORABLE PETER J. VISCLOSKY
Before the Congressional Steel Caucus, March 16, 2005
 

“Good morning.  I am pleased to have this opportunity to welcome everyone to this Congressional Steel Caucus hearing on the state of the domestic industry and the challenges and priorities we must address in this new Congress.  I want to thank Chairman English for his leadership and recognize the vital efforts of the Members of this caucus.  I look forward to working with my distinguished colleagues and our distinguished guests to address our shared concerns.

“I would also like to recognize this caucus’ recent success in urging the Department of Commerce to extend the Steel Import Monitoring Program.  This certainly is a victory for the domestic steel industry, and the efforts of the witnesses we have here today and the Members of this caucus were integral in securing the extension of this program.

“However, I also would like to reaffirm my commitment to making this program permanent.  Everyone in this room understands that one year of profitability does not guarantee permanent stability in the market.  While I am pleased that we will continue to closely monitor steel imports for the next four years, it is important to not lose sight of the long-term success of this industry.  I remain committed to ensuring accurate, timely data is provided so that we can act to prevent a resurgence of illegally dumped steel imports such as those that led to the steel crisis of the late 1990s.

“In addition to monitoring imports, I remain committed to ensuring the enforcement of our antidumping and countervailing duty laws.  That is why I testified before the International Trade Commission (ITC) on March 2, 2005, to support the continuation of antidumping and countervailing duties on unfairly traded hot-rolled steel imports from Brazil, Japan, and Russia.  Each of the subject countries makes far more hot-rolled steel than it consumes, and these countries depend on being able to export their excess capacity.  As history has demonstrated, much of this excess capacity will be absorbed by the U.S. market with devastating consequences to the domestic industry.  This holds true for many of the countries currently subject to trade remedies that will be under sunset review in the coming months by the ITC.  It is essential that we continue to register our unwavering support for upholding these remedies which continue to be necessary and actively work for their continuation.

“Countless workers in my District were among those at the former Bethlehem, LTV and National Steel facilities who had dedicated their lives to the production of steel only to find themselves without a job or without their hard-earned pensions and health care benefits due to unfairly traded steel.  Growing up in Gary, Indiana, I watched with admiration as the steelworkers contributed to this nation’s national security and manufacturing base.  It was devastating to watch the effect the import surges had on these facilities and their employees.  That is why I have worked relentlessly to try to preserve our domestic steel industry, the jobs of the steelworkers, and the futures of the retirees and their families.

“As we move forward, it is important for this caucus to continue its efforts to ensure fair trade by pursuing responsible policies that enforce our antidumping and countervailing duty laws while addressing the continued threat that non-market economy subsidies and China’s currency manipulation present to the domestic steel industry and American jobs in general.  That is why I will continue efforts to hold China accountable for its conduct.

“Specific to domestic concerns for the industry, I would like to reiterate my commitment to protecting employee pensions.  The Pension Benefit Guarantee Corporation (PBGC) has recently posted large deficits in its single employer program.  The weakness in the economy, particularly in the steel and airline industries, has led to large and expensive plan terminations that have eliminated the previous surplus and left the single-employer program with a deficit of $11.2 billion.  The PBGC previously ran a deficit and turned it around to a surplus, so this is not the first time it has been forced to run a deficit due to the cyclical nature of the economy and bankruptcies.  However, given the significant number of retirees that have recently entered the program, I will continue to closely monitor the Pension Benefit Guarantee Corporation to ensure that it continues to guarantee a minimum level of insurance for retirees whose pensions are in jeopardy.  I further urge all Members to join me in monitoring all reform proposals closely.

“In closing, I look forward to working with my distinguished colleagues and guests in the coming months as we seek positive solutions to our shared concerns.  I am heartened by the bipartisan spirit which has permeated this caucus in the past and hope to see the spirit rekindled as we move forward in this new Congress.  Thank you.”