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DEMONSTRATORS CALLING FOR 40% IMPORT TARIFF

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By Michael Roknick
Herald Business Editor

Art Scarmack is among those planning to attend a political rally in Washington D.C. on Thursday but he isn't the typical Beltway operative.

The 87-year-old Farrell resident retired from defunct Sharon Steel Corp. nearly a quarter century ago. He's going on the bus trip because he believes President Bush should slap tariffs on steel imports because American producers are getting creamed.

"These imports are killing companies in the United States,'' Scarmack said. "They're undercutting prices and are knocking all the steel businesses and their employees out of work.''

Late last year the U.S. International Trade Commission ruled American steelmakers were being unfairly hurt by steel imports. They recommended Bush enact tariffs on imports of up to 40 percent. Bush has until March 6 to accept, reject or modify the recommendation.

To drive the point home the United Steelworkers of America are hosting the D.C. rally near the front of the White House. At least one busload of United Steelworkers union members, retirees and their families in Mercer County plan to leave in the wee hours of the morning Thursday to attend the event. The USW is sponsoring scores of other buses throughout the country to give the rally oomph.

"We hear Bush's decision will be made this week but it won't be announced until March 6,'' said Charles Rice, northwestern Pennsylvania coordinator for the USW's Stand Up For Steel Committee.

USW and American producers are seeking the top 40 percent tariff recommended by the ITC. If stiff tariffs aren't enacted, they fear more American steelmakers will be plunged into bankruptcy or close. Over the past year more than two dozen American producers have sought refuge in the bankruptcy court.

If more steel plants close 600,000 retirees health insurance and pension benefits, so-called legacy costs, would be jeopardized Rice said. There's no way the Pension Benefit Guaranty Corp., the quasi-government insurer of the nation's pension plans, could withstand such a hit, he added.

A USW plan calls for tariffs to support retired steelworkers pension and health insurance plans. But tariffs must come first, Rice said.

"We can't go anywhere without tariffs,'' he added.

But Scarmack is more concerned about steelworkers who lost their jobs.

"I'm thinking about the other guys,'' Scarmack said. "I have a pension and get Social Security. People who don't have a job are hurting.''

He's not sure if the rally will convince Bush, a Republican, to impose large tariffs. The USW supported Democrat Al Gore in the past presidential race and threw their weight behind Clinton in the two prior races.

"I don't know if this is going to do any good or not,'' Scarmack said. "Clinton was in office for eight years and he didn't do anything.''