h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

US tariff blamed for steel job cuts

13.08.2002
By ALAN PERROTT
About 100 jobs will be cut at the Glenbrook steel mill and United States tariffs have been blamed.
Trade Negotiations Minister Jim Sutton said the job cuts announced at the Australian-owned South Auckland mill yesterday were sad and undeserved.
"I feel terribly sad about it. Those guys don't deserve that and the company doesn't deserve that. It's due to the, in our view, unjustified barriers erected by the US Government against steel ... We are in no way responsible for the difficulties the US steel industry finds itself in."
President George W. Bush announced the trade barrier on March 6, imposing a 30 per cent tariff on steel imports to protect manufacturers in the politically important "rustbelt" states.
The Glenbrook steel mill employs about 1350 people and exports about 60 per cent of its annual production of 600,000 tonnes to the United States.
The tariffs were designed to appeal to American voters, said Mr Sutton.
"It's a purely political thing. We feel quite resentful of it."
BHP NZ Steel president Cyril Benjamin blamed the job cuts on the US tariffs and higher financial targets being set by the owners.
He hoped most of the cuts could be made by workers accepting voluntary retirement.
Staff could then be redeployed within the company and redundancies would be used only as a last resort.
Peter Elsley, senior union delegate at the Glenbrook mill, said the job cuts were not a surprise but staff were not happy about the company's reluctance to make redundancy payouts.
BHP NZ Steel gave employees two months to request voluntary redundancy from early July, but Mr Elsley said the company would not say how many applications had been received and how many more job cuts would be necessary.
The company has proposed that those losing their jobs will be placed in a work pool with 10 weeks' income protection.
Pool workers will be allocated to different tasks on a daily or weekly basis.
Mr Elsley said the proposal was unacceptable and workers could face large pay cuts once the period of pay protection ended.
Mr Sutton said the Government was lobbying the United States for a meeting on the issue, but said the Americans were dealing first with those countries capable of damaging trade retaliation.
"It's a bit like the Waimate under 7 stones going in against the All Blacks."


If people talk to me about steel my eyes glaze usually. So this announcment by bush may be old news. Whay should the world bother with free trade agreements. Anyone remember the speech Bush aimed at Cuba not so long ago? Free Trade, Free Market or Free Access, one of the catch phrases.

In this particular instance free trade agreements are very useful: the only countries automatically exempted from the tariffs were Canada, Mexico, Israel and Jordan because they had signed up to such deals with the US.

Hi Apparition

>

yep, but pretty succint.

>
>US tariff blamed for steel job cuts
>
>About 100 jobs will be cut at the Glenbrook steel mill and United
>States tariffs have been blamed.

yep, seems plausible.

>
>Trade Negotiations Minister Jim Sutton said the job cuts announced >at the Australian-owned South Auckland mill yesterday were sad and >undeserved.
"I feel terribly sad about it. Those guys don't deserve that and the company doesn't deserve that. It's due to the, in our view, unjustified barriers erected by the US Government against steel ... We are in no way responsible for the difficulties the US steel industry finds itself in."

I like the way aussie politicians talk pretty straight. The man has a point, the barriers are unjustified.

>President George W. Bush announced the trade barrier on March 6, >imposing a 30 per cent tariff on steel imports to protect >manufacturers in the politically important "rustbelt" states.

yep. US Democracy in action in a global economy.

>The tariffs were designed to appeal to American voters

its been said before, but the States does have an uncommon amount of weight to throw around, economically, figurativley and induced.

>Why should the world bother with free trade agreements. Anyone remember the speech Bush aimed at Cuba not so long ago? Free Trade, Free Market or Free Access, one of the catch phrases.

Because, as usual, its the 'biggest' saying do as I say (not as I do) to the littlest, and it sure as hell aint 'fair' or 'civilised.' Its also hypocritical, self defeating and doesn't even make sense on its own terms.

Free trade is acceptable for allowing access to third world markets for artifically huge gluts of crops and crap, but nor for allowing incoming competition. (Very similar to how The British Empire managed its overseas economies - as slave labour with enforced economic dependence)

This is one of the many reasons we need a revoultion.

Hi Zebrafish

Actually Jim Sutton is an NZ politician. The company is Aussie owned and the plant is in Auckland NZ. We were brought kicking and screaming into 'free trade' during the 90s. We also were one of those economies that were mostly dependant on UK trade until the 70s.

One thing. You have to find the marketing devision of sirus cybernetics corperation before you have a revolution

*goes off to stick head in a pig*

Apologies for the Oz / NZ error.

While waiting for the revolution I'm prepared to attempt diplomacy and negotiation. But do u really think it will work?

"Apologies for the Oz / NZ error." no problem . I only mentioned it because Australia has a somewhat diffetent political relationship with the US.

On negoation. Do live in one of the key states? If so your govt may listen to you.