For Immediate Release
BETHLEHEM, Pa., April 18, 2002 - In response to media inquiries concerning the reaction by Bethlehem Steel Corporation to the Senate Bill 2189 introduced by Senator Jay Rockefeller of West Virginia that addresses steel industry legacy costs, the following statement is attributable to Robert S. Miller Jr., Bethlehem's chairman and chief executive officer:
"Bethlehem supports S2189 introduced by Senator Rockefeller as a way to promote much-needed consolidation in the domestic steel industry. Until now, financially sound steel companies have been reluctant to lead the consolidation because of the significant legacy costs of retiree health care obligations that are held by financially troubled companies. This legislation proposes the creation of a trust fund for unfunded retiree health and life insurance benefits. The trust would be funded by a variety of mechanisms, including ongoing payments by the acquiring companies on a per-ton basis, tariff fees as a result of President Bush's 201 petition decision and the use of Voluntary Employees' Beneficiary Association funds provided by acquired companies.
"Bethlehem, which has invested billions of dollars in modernization during the past decade, would be globally competitive if its legacy costs were removed from its cost structure. We support consolidation of the United States' steel industry and are working toward that goal. Since no companies are able to bear the full weight of our outstanding retiree health care obligations, consolidation to streamline the industry has been hindered.
"President Bush and his administration created the climate for consolidation on March 5 when the steel tariff program was announced. Senator Rockefeller has now assumed the leadership for the next essential component of federal policy needed to promote consolidation and create a long-term viable steel industry. Thanks to both of these great leaders for Standing Up for Steel and for tackling tough public policy issues that will support our customers and our country."
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Media Contact:
Bette Kovach
610-694-6308
Public Affairs Department
Bethlehem Steel Corporation
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