USW Leaders Threaten Strike Against ArcelorMittal

In a move that could have far-ranging shockwaves throughout the Great Lakes and North Americas industrial production, the United Steelworkers (USW) union leadership has decided to pursue an authorization from its members to organize a strike against ArcelorMittal, the world's largest steelmaker.

In response, an emailed statement from an Arcelor Mittal spokesman released yesterday said, "We are aware that the USW is pursuing a strike authorization vote but negotiations are ongoing and we remain optimistic that a settlement will be reached by September 1." That date is the date that the current contract is set to expire.

The USW is urging members on Wednesday to authorize a strike that could involve the company's 14,000-member U.S. workforce, according to a report on the Wall Street Journal's website late on Tuesday. A strike could push already-high steel prices higher because it might further constrain supply.

"The company's current position does not do justice to our needs and demands and does not match the pattern set by the U.S. Steel agreement," according to a an update mailed to members on Tuesday by the union's negotiating panel, and cited in the Journal's report

For its part, ArcelorMittal said it would refuse to disclose details of its negotiations with the union, but it was pursuing an "amicable resolution towards the remaining handful of unresolved issues."

The Seaway at '50'--Changes in Store

The following is a reprint of a column by Saint Lawrence Seaway Development Corporation (SLSDC) Administrator, Collister "Terry" Johnson, Jr. from the most recent issue of the the SLSDC's newsletter, The Seaway Compass. The editors of The Seaway Channel think that the thoughts expressed are noteworthy and we take this opportunity to share them with our readers.

"On the eve of the Seaway’s 50th Anniversary, I believe the Seaway, and the customers we serve, are living in a rare period of transformational change. Don’t let the Seaway’s relatively stable traffic levels fool you (Gross Register Tonnage (GRT) through the Seaway is only 2 percent lower than last year) – the commercial navigation industry and the world markets served by the Seaway’s stakeholders are in the midst of unprecedented changes. So much so that I would venture to ask, “Are we at a tipping point?” I don’t think it will be ‘business as usual’ for much longer.

A review of recent headlines reveals examples of the dynamic and fundamental industry and market changes that are underway. Here are some of the more noteworthy ones: The emergence of strong economies in the “BRIC” countries (Brazil, Russia, India, and China); the explosion in commodity prices, particularly the “Big 3” Seaway commodities; steel, iron ore, and grain; unprecedented energy costs; freight rates reaching once unheard of levels; the difficulties affecting North American heavy manufacturing, particularly the auto industry; the relative strength of the dollar vs. other currencies; rising environmental awareness and activism including efforts regarding invasive species; lack of attention to transportation infrastructure.

These changes will surely affect the Seaway and its customers. Increasing energy costs, for example, while bringing negative repercussions nearly everywhere, could positively impact the Seaway. As high energy costs affect transportation, the cost per ton mile for using the marine mode becomes a real bargain. It is estimated that fuel use for moving a ton of cargo by truck is 20 miles per gallon, by rail is 435 miles per gallon, and by barge is as much as 1,000 miles per gallon. Our waterways are currently an underutilized alternative to congested surface routes, particularly at our nation’s border areas. I believe we are on the cusp of the development of container shipping in the Great Lakes that will utilize short sea shipping services to move large volumes of goods to America’s heartland. Moreover, as alternative energy sources are emerging, the Seaway stands to benefit from the increasing volume of project cargoes that support them, such as wind turbines.

Rising environmental awareness and activism are bringing increased scrutiny of the maritime mode, from invasive species to emissions to shipping’s environmental footprint. How the industry reacts to this attention is also being watched. Industry has been brought together by these challenges, is responding in a responsible and meaningful way, and will ultimately be better off because of it. Marine transportation has been proven to be the most environmentally friendly mode of transportation, though we are still working hard to convince many of that fact. For example, the new Seaway ballast water inspection regulations implemented this navigation season are finally being recognized as a proactive approach to our most vexing environmental challenge. Now, more than ever, the maritime industry must reaffirm our commitment to responsible stewardship of our environment and incorporate ‘green’ policies into every aspect of our operations. The Seaway System can turn the increased attention in the environmental arena into a positive, rather than a negative situation if we continue on a proactive path.

Industry efforts to modernize are critical during these times. Infrastructure renewal is on the agenda, and the Seaway’s budget, still under Congressional review, will hopefully allow us to begin the long term asset renewal plan at the U.S. locks as soon as next year. The revised Canadian tariff structure is yet another example of proactive thinking. This innovative approach which combines targeted incentives, volume rebates and restructured fees is attracting new cargoes and offers a competitive fee structure to shippers and carriers. Together with the toll freeze, this promises to provide a significant increase in new business growth for the System. In addition, the application of state-of-the art technology to our current infrastructure will maximize opportunities for users. The Seaway is pursuing draft optimization initiatives, which will allow vessels to take advantage of greater drafts to maximize use of the present System. All of these innovations and improvements are continuing at a steady pace, pointing to a system that builds on its strengths by welcoming new technologies and new ways of doing business.

The Seaway is ready to meet and profit from the fundamental changes underway. The Seaway is poised to take advantage of an expanding world economy. I am encouraged by the current people in place in the marine community, in both the government and the private sector, that have the vision to see the opportunities and the ability to capitalize on them. By fostering innovation and cooperation, by renewing what we have, and by modernizing, we are well positioned to enter into the next 50 years."

This Week's Poll Question

IJC Discusses Public Comment on Lake Ontario and St. Lawrence River Water Levels and Flow Rates

The Commissioners of the International Joint Commission met in Toronto from August 12-14 as part of ongoing deliberations to review their Order of Approval and regulation plan for Lake Ontario and the St. Lawrence River.

The Commissioners reviewed the record of public comments, which included testimony from over 200 organizations and individuals at 10 public hearings held in June of this year, and over 1,200 written submissions received during the public comment period, and directed that a synthesis of public comments be posted to its website to complement the existing transcripts and submissions.

The Commissioners met with representatives from the Governments of Canada and the United States and discussed the public comments and submissions regarding the Commission’s draft proposals. The Commission anticipates also meeting with representatives from the provinces of Ontario and Quebec and the State of New York prior to concluding its deliberations.

The Commission will continue to provide updates during its deliberation process. For more information, visit the Commission’s website at www.ijc.org.

Stephanie Tubbs Jones R.I.P.

U.S. Rep. Stephanie Tubbs Jones (D-OH) , the first African-American woman to represent Ohio in Congress, has tragically passed away after suffering a massive and unexpected brain aneurysm.

On August 19, 2008, Congresswoman Tubbs Jones suffered the attack while driving her car. Police had noticed erratic driving and identified the unconscious Tubbs Jones when the vehicle finally came to a stop in a field. She was taken to the intensive care unit of Huron Hospital, a satellite of the Cleveland Clinic, where she was put on life support. Due to hemorrhaging, she remained in unstable and critical condition and was removed from life support at 12:19 p.m. yesterday, according to sources.

Congresswoman Tubbs Jones made a number of historic achievements in her distinguished career as a public servant. Prior to her election to the House, Congresswoman Tubbs Jones served as the first African-American and the first female Cuyahoga County, Ohio Prosecutor. She was the first African-American woman to sit on the Common Pleas bench in the State of Ohio and was a Municipal Court Judge in the City of Cleveland. Tubbs Jones, 58, was elected in 1999 to the House of Representatives and she had served five terms in Congress and was expected to easily win her sixth in November.

Earlier this year, the Great Lakes Maritime Task Force (GLMTF) named Rep. Stephanie Tubbs Jones as their “Great Lakes Legislator of the Year” for her tireless work in support of the Great Lakes shipping industry. Tubbs Jones formally received the award at the group’s annual gathering for the Great Lakes congressional delegation on this past April 2^nd in Washington, D.C. Rep. Tubbs Jones received national attention recently as a co-chair of the successful Ohio primary election effort of the Hillary Clinton for President Campaign.

Stephanie Tubbs Jones was a longtime, dedicated public servant, a friend and advocate for the Seaway System, and a trailblazer breaking down longstanding race and gender boundaries. She will be missed.

The Congresswoman is survived by her son Mervyn Leroy Jones, Jr.