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<title>Our Struggle, June 2, 1998</title>
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<p ALIGN="CENTER">June 2, 1998</p>
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<p>AFL-CIO to Members: Boycott Oregon Steel! Don't Bank With Wells! </p>
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<p>At the request of the Steelworkers union, the 13.2 million-member AFL-CIO has taken the
rarely-used step of calling for a national boycott of two companies—Oregon Steel
Mills (OSM) and its main financial backer, Wells Fargo Bank—to protest the war they
are waging on 1,000 members of the United Steelworkers of America at OSM's CF&I mill
(now doing business as Rocky Mountain Steel) in Pueblo, CO. Last October 3, the company
forced the workers out on strike by repeatedly violating U.S. labor laws.</p>
<p>The labor federation is asking its 73 international unions, their 30,000 local unions,
individual union members and central labor bodies in every state to avoid doing business
with OSM and to close any institutional or personal accounts they have with Wells Fargo
Bank.</p>
<p>AFL-CIO President John Sweeney said the Steelworkers union believes one of the reasons
the work stoppage in Pueblo has gone on for so long is that Wells Fargo has led a group of
banks in making a $125 million line of credit available to Oregon Steel.</p>
<p>Not only was Wells Fargo instrumental in making the initial $125 million loan, it
secretly negotiated two bailouts when Oregon Steel was about to default on the loan. The
secret deal also made available a another $15 million to partially offset the cost of the
Pueblo Steelworkers' three-month unfair labor practice strike.</p>
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<td VALIGN="TOP"><font SIZE="4"><i>"Our resolve in this matter will send a clear
signal not only to Wells Fargo, but to other banks that would use our own deposits against
working families and our unions."</i></font><p>AFL CIO PRESIDENT JOHN SWEENEY 5/15/98</td>
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<p>Production Woes Continue to Plague OSM's Pueblo Mill </p>
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<p>When it comes to production problems, replacement workers at Oregon Steel's Rocky
Mountain (formerly CF&I) Steel mill in Pueblo, CO, continue finding new ways to make
mistakes that cost the company a bundle. The latest difficulties, according to sources
inside the plant, involve a huge jump in the percentage of flawed rail being produced for
Union Pacific and other customers; the company's inability to produce a new type of rail
ordered by the government of Egypt; and mechanical problems with the seamless/tube mill's
rotary furnace. Most plant personnel are untrained replacement workers hired when the
Steelworkers union struck the plant last October.</p>
<p>In the past, officials from Union Pacific Railroad have threatened to cancel orders and
take their business elsewhere when their inspectors found more than three percent of the
rail in a particular order to be faulty. Significantly, by the time the rail gets to the
UP inspectors, it has already been examined by the plant's own in-house inspectors. Since
April, sources report, UP has found 13 percent of the already-inspected rail to be
unacceptable, due to end-related defects such as hooks, droops and saddles.</p>
<p>A second recent snafu involved a large order from the government of Egypt for a new
type of rail never before produced at the Pueblo plant. Over the course of 12 eight to
12-hour shifts, workers produced nothing but scrap. When they tried to remedy the problem
by machining the rollers, it only made matters worse—and ruined six $15,000 to
$17,000 rollers in the process. Yet a third problem arose in the seamless mill on May 22,
the rotary furnace that reheats billets went down due to problems with its mechanical
drive system. When workers attempted to re-start the furnace on May 28, they burned out
the electrical wiring underneath the furnace, keeping it off line until at least May 31.</p>
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