Hardly noticeable amidst the noise of the latest war drive of the US bourgeoisie is the tragic collapse of an entire industry taking its toll in the lives of tens, even hundreds of thousands of workers. As world capitalism sinks miserably in its own inherent contradictions the ruling class has only one course of action, to force austerity on the workers and jam one imperialist war after another down their throats. The collapse and restructuring of the steel industry in the US is a clear indication of the decay of this system and the heavy burden placed on the backs of the working class. The current state of affairs in world capitalism is apparent within the very centers of capitalism itself. LTV, the third largest steel producer in the country has filed for bankruptcy and cannot find a buyer.

"Little Steel", those steel producers in the US smaller than US Steel, in fact includes some of the biggest steel producers in the country. The outbreak of the economic crisis in Asia in 1997 and the weight of the dollar in the world economy have both acted to knock down an already sick industry. As the nations of the world try to export their way out of a crisis at root caused by a falling rate of profit steel producers in the US are going under because the costs of operating in the US are too high. Leaving the steel producers and the unions the task of cutting back productive capacity, closing factories and cutting wages and benefits. Since 1998 some 25 steel companies have gone out of business in the US.

December 19, 2001, a federal judge gave the official go-ahead to idle the LTV mills in Cleveland, Ohio and East Chicago, Indiana along with their coke making facilities in Warren, Ohio and Chicago, Illinois, putting some 7500 people out of work. The impact of this shut down extends far beyond the 7500 workers laid off. In Northwest Indiana some 9000 additional jobs will eventually be lost as LTV suppliers scramble to contract to other companies. Other steel plants in the region are also hurting. Bethlehem Steel is bankrupt. US Steel, Ispat Island Steel, and National Steel plants are all losing money. With Bethlehem Steel bankrupt and thus not paying taxes the local school district stands to lose some 40 percent of its budget. In Gary, Indiana steel makes up 50 percent of the local tax base. In 1980 50,000 steelworkers were employed in this area, today they number around 20,000. The capitalist response to their falling rates of profit is to eliminate their capacity to produce steel.

LTV will run on so-called "hot idle", meaning the coke ovens will be kept on, through the end of February 2002. Should no buyer come forward at that time the coke ovens will be turned off permanently. On February 27, 2002, company assets will be auctioned off.

At the end of February supplemental unemployment benefits paid by the company, and already cut in half, will cease to be paid completely. The company will no longer fund job retraining and job search programs to its laid off workers. LTV will no longer pay into the medical trust fund that supplies medical benefits to some 55,000 union and 13,100 non-union retirees, the fund itself will run out of money by mid-summer 2002.

Work in the steel industry is known for the debilitating effects on the health of its workers, creating chronic medical problems and exposing the workers to common toxins such as benzene, tar and hydrochloric acid. Many of these workers will now have a hard time finding ways to pay for their life’s service to the industry.

In recent years some 29 steel makers have filed for bankruptcy protection under Chapter 11 of US bankruptcy law. Some steel companies like Edgewater, Great Lakes Metals, Trico, and Northwestern Steel and Wire have shut down completely. LTV is only the latest and largest of a growing list of casualties. Steel making in the US produces roughly 64 percent of what it is capable of producing and industry analysts say it will take another 20 percent cut in production in order to return the industry to profitability.

The role of the United Steelworkers of America (USWA) should shake people of any illusions they might hold of unions as the great defenders of the proletariat. In November of 2001, US Steel announced that it was in merger talks with Bethlehem, National and Wheeling-Pittsburgh. Company officials stated that in order for the merger to go through there would have to be major concessions on the part of the workers and an agreement from the government to take up paying the so-called "legacy costs" of retired workers. These costs of a large aging workforce relative to the small number of workers employed in the industry today represents a major target of the bosses in their futile attempt to regain profitability. USWA stated that it would support the merger. This is hardly unusual as they supported every other initiative made by the owners regarding layoffs and benefit cuts. Instead of defending workers, which they can’t do anyway, they have responded by mounting a nationalist campaign calling on government protection of the steel industry blaming the crisis on cheap foreign imports and cheap foreign labor. The US government has recently pledged at a meeting of the International Trade Commission in Brussels to cut US Steel production by the industry analyst recommended 20 percent. The US government indicated that any support for the US steel industry will hinge on how much the industry restructures, how many workers are laid off and how much wages and benefits are cut. The USWA will go along with this because they have no choice. Given the nature of the crisis it would matter little how militant or acquiescent the union or what shade of unionism was practiced. So the workers go to the wall and the unions will help put them there.

US Steel is making a move to control all of what is left of the steel industry in the US. They are, along with the USWA asking the US government for assistance. Namely, $12 billion dollars in government aid to pay for employee benefits. They want the government to push aside antitrust laws that might get in their way. They further want tariffs on imported steel of up to 40 percent to protect their industry. Despite all the free market rhetoric of the US government they might just give the industry at least some of what it wants.

Only when workers start to see past the national chauvinism propagated by the unions and the state in this increasingly politically repressive environment, will they be able to defend themselves against this assault. What is also clear is that the bourgeoisie has no solution to this crisis; they talk free market gibberish until they run into economic difficulties and then they seek the shelter of the state. The real key to this crisis is not in the hands of the ruling class. It lies in the hands of workers and it signifies world revolution.

Editors note: Our correspondant ASm was right. Tariffs of up to 30% have indeed just been imposed.