WASHINGTON– Today Congressman James L. Oberstar testified before the House Energy and Commerce Committee’s Subcommittee on Commerce, Trade and Consumer Protection in support of H.R. 4646, the Steel Industry Legacy Relief Act of 2002. In his testimony, he stated:

 "I greatly appreciate your interest, Mr. Chairman, in holding this important hearing this morning. It is imperative for this subcommittee, for the House Energy and Commerce Committee, and for this Congress to move expeditiously to advance this legislation this year. I know that we are approaching the final days of this Congress, and there is a growing sense of partisanship in the air. On the eve of the one-year anniversary of the tragic attacks upon America, I am hopeful that we can restore that sense of bipartisan solidarity and work in common purpose to address the most urgent needs of the steel industry, its workers and retirees. H.R. 4646 enjoys strong bipartisan support and this legislation must be included on the short list of legislation that Congress must pass this year.

I strongly believe that this Congress must do for retiree health care coverage what the 93rd Congress did for pensions. I was here in Washington, as Administrative Assistant to my predecessor John Blatnik, when Congress approved the Employee Retirement Income Security Act of 1974, commonly known as ERISA. This legislation provided the framework for the Pension Benefit Guaranty Corporation (PBGC), which was created to protect the pensions of participants and beneficiaries covered by private sector, defined benefit plans. Because of PBGC, thousands of workers have been able to enjoy a measure of retirement security when their employer is no longer able to provide for their pension.

PBGC has carried out its mandate very well, with over 3000 pension plans under its protection. The underlying ERISA law, however, needs to be fine-tuned and expanded; for there are many LTV steel mining retirees in my district who know full well that the pensions that they were promised by LTV will not be honored by PBGC. That issue is for another day and for the Education and Workforce Committee.

The essential point is that there is a federal safety-net for pensions, but not for health care. The Dingell-Lahood legislation will move us toward addressing that discrepancy. The health care provisions in H.R. 4646 will provide health care security for thousands of retirees who have lost or on the verge of losing their health insurance benefits. The creation of the Steel Industry Retiree Benefits Protection program and the Board to administer this benefit trust fund will ensure that steelworker retirees will continue to have access to essential health care benefits.

With bipartisan support, President Bush took steps in the Section 201 Steel Remedy Plan to combat subsidized foreign steel that provides modest relief for our beleaguered domestic steel industry. There is, however, considerable unfinished business to ensure the vitality of this critical sector of our economy. Because the enormous legacy costs present an obstacle to rational steel industry consolidation, it is incumbent upon the Congress to provide an effective framework that acknowledges the vulnerability of retiree health care coverage.

We have a unique opportunity to help shape the future of the U.S. steel industry. When the International Steel Group (ISG) acquired the steelmaking assets of LTV in the bankruptcy proceeding this year, ISG was able to able to make steel without the burden of steelworker legacy costs. If the ISG example becomes the new business model for steel, then we will have hundreds of thousands of steelworker retirees and their families join the ranks of the uninsured. The enactment of H.R. 4646 will provide a thoughtful approach to steel industry consolidation that will prevent future LTV/ISG episodes. H.R. 4646 will ensure that steelworker retirees will have a measure of dignity after their years of dedicated work, and that there is an understanding that these workers should not lose their health benefits in a bankruptcy proceeding.

The iron ore industry of Minnesota and Michigan is dependant on a healthy domestic steel industry. For the thousands of workers in my district and to strengthen the retirement security for steelworker retirees and their families throughout the nation, I implore this subcommittee to mark-up H.R. 4646 in a timely manner."