UNITED STEELWORKERS OF AMERICA

AT ISPAT INLAND STEEL

Locals 1010 at Indiana Harbor – 6115 at Minorca – 9231 at New Carlisle

2004 BARGAINING POLICY

INTRODUCTION

Steelworkers have never had it easy. We work on jobs that require great skill; are often hot, hard, and dirty; and far too often dangerous. For as long as there has been a steel industry, steelworkers have fought to improve their standard of living, control their working environment, and safeguard each other from the hazards of heavy machinery and molten metal.

In this struggle, steelworkers built two great unions: the Amalgamated Association of Iron Steel and Tin Workers in the 1800’s and then our union, the United Steelworkers of America. Through their unions, steelworkers since day one have fought to turn highly unsafe, less desirable jobs into safe, high paying jobs with good benefits – in other words: jobs worth fighting for.

And fight we have. We fought at the bargaining table to build steel jobs into family supporting, middle class jobs. We fought on the job and at the bargaining table for safe working conditions. We fought in the halls of power in Washington D.C. to save our industry from the “free traders” who wrote us off as “dinosaurs.” And we fought steel management and the bankruptcy courts to drive a consolidation in the industry so that we would have companies that could demand – and get – prices that allowed for sufficient profits to support our standard of living, our health care, and our pensions.

None of this was about saving steel companies. All of it was about saving steel and iron ore operations and the Steelworker jobs in those plants. And we did!

As part of that fight, our union negotiated new contracts at ISG and U.S. Steel. Those contracts:

ü saved thousands of jobs at the former National, Bethlehem, LTV, and Acme plants;

ü saved thousands of jobs at U.S. Steel when we stopped the Company’s plan to sell off coke and iron ore operations and import slabs from Eastern Europe;

ü saved pensions and retiree health care for thousands of U.S. Steel retirees and provided a new pension plan and health care benefits for future retirees at ISG and the former National plants of U.S. Steel;

ü preserved the historic contractual breakthroughs won over generations of struggle, and maintained the standard of living that has made steelworker jobs worth fighting for.

Now we face the last of the major integrated steel companies in contract negotiations. At Ispat Inland, Locals 1010, 6115, and 9231 have a proud tradition that we are determined to uphold. As we look to our 2004 negotiations, we adopt this bargaining policy as our guide.

GUIDING PRINCIPLES

We will base our bargaining on the following principles:

Ø Financial viability of the Company

The Company must do what is necessary to create a financial structure that allows it to invest in its facilities and meet its obligations.

Ø Share in the Company’s success

If the Company does well, it will be because of our efforts. The benefits of any success, therefore, rightfully belong to Union members. A strong, enforceable profit sharing plan is essential to any new agreement, but not as a substitute for wages and incentives.

Ø Streamline and simplify

Because we know from experience that the current strong steel market and high prices will not last forever; and because we know that a profitable Company is essential to maintaining our standard of living and our pensions; and because we know that an efficient operation is key to profitability; we are prepared to continue to look at ways to more efficiently operate our plants, provided that it is done safely, it is done with fewer supervisors, and our seniority rights are respected. We are not, however, willing to stand by and watch the Company reduce jobs to the point that lack of people results in steelworkers forced into unsustainable levels of overtime, steelworkers forced into jobs they are not adequately trained for, and steelworkers forced to work under conditions that do not provide safety and dignity on the job.

We are also committed to creating collective bargaining agreements which are more "worker-friendly." Over the years our contracts have become unnecessarily long and complex. Strong protection does not require contract language that Union members cannot understand.

Ø Continue strong contracting out protections

We have not fought so long and so hard for the survival of our industry to allow the Company to turn our jobs over to contractors. The battle for strong protections against contracting out of our jobs has been a focus of Steelworker bargaining for many years, and we will continue to insist on tough contracting-out language in our new contract.

Ø Protect our pension benefits

We do difficult and dangerous work, and a lifetime of work in a steel mill entitles a worker to a retirement with dignity. We will maintain our commitment to see to it that steelworkers receive their promised pension benefits.

Ø Provide the maximum level of medical care for ourselves and our retirees

This is an obligation that should be borne by the government. But until that happens, we must insist that the Company continues to provide for the cost of health care benefits for ourselves and our retirees.

Ø Strengthen corporate protections

We have not made the fight for the steel industry for the benefit of others. If history has taught us one thing, it is the power of strong corporate protections. Successorship is but one example of how our push into "management prerogatives" has delivered tangible benefits for Union members. But we need more. We need investment commitments and restrictions on the ability of our management and our owner to line their pockets at our expense.

Ø Protect our work schedules

Use of “non-traditional” work hours is increasingly the trend in many industries. We are willing to allow for the use of ten and twelve hour shifts, but only with adequate protections and only with the agreement of the steelworkers who would work that schedule. We will not negotiate away our historic limitations on the right of the Company to unilaterally force steelworkers to work schedules other than those based on an eight-hour day and five-day week.

Ø Increase the role of our Union

Throughout the Company, the Union’s role must be enhanced. In Training, Safety, Civil Rights, and many other areas, there must be a greater voice for our members through their Union.

AN INJURY TO ONE IS AN INJURY TO ALL

In 1999 we succeeded in bringing all Ispat Inland union members together for mutual support. Our motto then remains our motto today: No one left behind!!

Indiana Harbor Production and Maintenance, Office and Technical, Research, and Process Automation; Minorca Mine Production and Maintenance; I/N Tek and Kote Production and Maintenance and Technical and Clerical: we are all in this together and we will stick together to make sure that all of our brothers and sisters receive the benefit of the contracts we will negotiate!

WHAT IF NEGOTIATIONS FAIL TO PRODUCE AN AGREEMENT?

MUST WE ARBITRATE OR WILL WE STRIKE?

We intend to bargain for a fair and equitable contract, and we expect the Company to do the same. We must, however, prepare for the possibility that an agreement cannot be reached.

In 1999 we agreed that, if Ispat Inland would invest to maintain steelmaking capacity at the Indiana Harbor Works we, in return, would resolve negotiations disputes in 2004 by arbitration. We have serious questions about whether Ispat Inland has met its commitment, and about whether – under current circumstance – we are still required to arbitrate.

We are carefully evaluating this question, but in the meantime, we will of course bargain to meet our legitimate expectations. A serious, good-faith effort on the part of both sides can best help to assure that neither a strike nor arbitration will be necessary.

CONCLUSION

Steelworkers have never had it easy. But steelworkers have always fought – successfully – to improve our lot in life. Today is no different. The problems we face may have changed, but the fight is the same. We are committed to the same principles that have always guided us: to make sure that steelworker jobs remain jobs worth fighting for. And, in the process, we commit to keeping the members we are privileged to represent as informed as possible.

AS HAS ALWAYS BEEN TRUE, IN UNITY AND SOLIDARITY, STEELWORKERS WILL PREVAIL!

UNANIMOUSLY ADOPTED

Local 1010	International	Local 6115
Indiana Harbor	Union	Minorca Mine
Tom Hargrove, President	Leo Gerard, International President and	Marty Henry, President
Steve Wagner, Vice President	Chair, Basic Steel Industry Conference	David Zasadni, Vice President
Dennis Shattuck, Chair, Gr. Comm.	Jim Robinson, District Director and	Judy Henry, Recording Secretary
Luis Aguilar, Vice Chair, Gr. Comm.	Chair, Ispat Inland Negotiations	Tom Aubin, Financial Secretary
Darrell Reed, Secretary, Gr. Comm.	Ron Bloom, Special Assistant to	Jim Kottke, Treasurer
Mary Allen, Griever	the International President
Ernie Barrientez, Griever	Tom Conway, Secretary,	Local 9231
Matt Beckman, Griever	Basic Steel Industry Conference	New Carlisle
Rick Campos, Griever	Mike Mezo, District 7	Bill Mattozzi, President
Kermit Deel, Griever	Collective Bargaining Coordinator	Rich Podkul, Vice President
Phil Gruzosky, Griever	Mike Millsap, District 7	Mike Pearish, Chair, Dispute Resolution
Bill McDonald, Griever	Sub-District Director	Todd Kegley, JAC Rep.
Leonard (Dan) Mosley, Jr., Griever	Bill Carey, District 7 Staff	John Markiewicz, JAC Rep.
Jerry Strauch, Griever	John Rebrovich, District 11 Staff	Tom Voss, Unit Chair
Max Carrasquillo, Contracting Out
Larry Wolendowski, Benefits