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UNH VcIIey’s Vital Stake

Click to see original imageThere, is genuine concern in Utah Valley over the problems of the steel industry in America and their application, present and future, to Geneva Works. Tl1is was highly evident at the public hearing on the impact of foreignximports on Utah’s steel industry, held last weekend in Provo. Indeed, the concern extends far beyond the steel industry in this state – to related industries, steel fabricators, local government officials, and the public in general which depends heavily on Geneva’s jobs and payrolls. How can anybody fail to be concerned over the health of an industry that “earns for ourselves, our families, and local communities more than $120 million annually,” as Geneva General Supt. H.A. Huish reported at the hearing? “This figure,” explained Mr. Huish, does not count the even larger economic input our industry provides through local purchases and taxes, nor does it include the jobs in other industries that directly depend on our success.” Geneva’s 1977 tax check of $1,894,494, paid last week, was the largest in Utah County, amounting by itself to an impressive benefit to the taxpayers. The prime focus at the hearing was on foreign steel imports which impair markets for domestic producers and siphon away jobs and payrolls. Complaints have been made bv the American steel industry that some foreign governments subsidize shipments of steel into the U.S. market to keep their own plants operating. A government study indicates Japanese producers can make steel cheaper than the American companies, making it possible for them to undersell domestic mills on U.S. markets. While enforcement of the Fair Trade Act on imports drew heavy attention at the hearing, speakers also urged other steps, including easing government restrictions of EPA and OSHA, and granting of tax credits and other incentives to aid domestic plants in modernizing. Effective control of imports should be an immediate must. ‘I’here’s merit also in the other ideas, some of which received consideration in the Administration’s newly – released five – part assistance package. The package is still being analyzed. but its adequacy was quickly challenged by a steel state senator. There needs to be balance and judgment in anti-pollution measures. Outmoded plants definitely need to be updated. Replacement of such facilities isn’t an attractive proposition at present with profits to slim, say industry sources. Beyond these steps. there must be solid, long-range economic considerations, with federal action (and encouragement to private industry) to stimulate the economy and thus increase demand for steel and other products. The inflation spiral, tied to burgeoning government spending, will continue to harass business, industry, and the economy in general if it isn’t controlled. There should be continual scrutiny of the wage-salary structure, judging by Bureau of Labor Statistics data for August 19’77 which show the average hourly earnings for steelworkers was substantially higher than those in all manufacturing industries. U.S. News and World Report for Oct. 24 indicates steelindustry wages have gone up even faster in Europe and Japan. “But producers in those areas have offset much of the cost increase through gains in productivity. This improvement from 1965 to 1975 was 166.4 percent in Japan, 89.5 percent in three European countries, and only 17.5 in the U.S.” Undoubtedly our older plants amount to a big factor in this comparison. An official of U.S. Steel Corp., responding to a letter from a Provo citizen, mentioned the questions of wages, collective bargaining, and inflation, and made these points in conclusion: “The problem is not with our negotiating resolve. It’s with a collective bargaining system and a national labor law that permits large nationwide unions to exert monopoly bargaining power, a govemment which then chides the industry because that power has been used on us, and an Administration and Congress that is now supporting a Seante Bill (8410) designed to give big unions still more power. Remember also that a primary reason for inflated wage settlements is a government fiscal policy that has constantly generated inflation with 50 to 100 billion dollars per year deficits in federal spending. Employees and unions consequently come under great pressure to keep pace with fiscal inflation through higher wage guarantees.” His comments should be considered well by Congress and the Administration. The over-all problem is complex. And with some steel plants already closed, it’s acute. To bring present and long-range solutions will require the best thinking and united efforts of people in govemment, industry, and labor. Utah Valley has a vital stake in the decisions. Its neonle should not miss an opportunity to let their voices be heard.