Wednesday, February 1, 2012

Retirees Occupy Century Aluminum

Retirees Occupy Century Aluminum

 

By Leo W. Gerard

alternet

February 1, 2012

 

http://blogs.alternet.org/speakeasy/2012/01/31/retireesxd-occupy-century-aluminum/?utm

 

On Dec. 18, a dozen retirees, men and women in their

60s, 70s, even 80s, began occupying a median strip

along Route 33 in front of the closed Century Aluminum

smelter in Ravenswood, W.Va. In tents and under tarps,

a small group stays overnight, despite hypertension,

arthritis and other old age ailments. One has suffered a stroke.

 

These vulnerable people expose themselves to weather

extremes although some have no health insurance at all.

Century cancelled it. That's why they're occupying Century.

 

The retirees labored their entire lives for wages and

pensions comparably lower than those of other aluminum

workers. They did it believing they made those

sacrifices in exchange for good, lifelong health

coverage. Over the past two years, however, Century

evicted them, about 540 retirees altogether, from the

insurance plan.

 

The betrayal burns. Executives at Century, corporate 1

percenters, committed the same sort of treachery that

is being condemned by Occupy Wall Street demonstrators

representing the victimized 99 percent across the

country. Thus the retirees adopted the grandchildren's

protest tactic of encampment.

 

Century shuttered the 50-year-old Ravenswood smelter in

February of 2009, throwing 651 workers out of jobs.

Century, headquartered in Monterey, Calif., didn't go

bankrupt though. It still operates aluminum plants in

Kentucky, South Carolina and Iceland. And it didn't

immediately cancel promised insurance for retirees.

 

Nine months after the shutdown, it announced it would

terminate as of June 1, 2010 health benefits for

retirees eligible for Medicare. Then on Nov. 1, 2010,

Century told its retirees who weren't yet eligible for

Medicare that it would stop paying for their coverage

as of Jan. 1, 2011.

 

This revoking of earned benefits isn't an isolated

incident or a fluke. It is part of a pattern documented

by Wall Street Journal investigative reporter Ellen E.

Schultz in her new book "Retirement Heist." The

subtitle is, "How companies plunder and profit from the

nest eggs of American workers.

 

She describes in gory detail how corporations raided

worker pension accounts, siphoning off surpluses that

would be needed later to prop up plans damaged by the

Wall Street collapse. She provides detailed accounts of

executives gouging the funds to pay for their own

exorbitant retirement packages. She tells of corporate

executives ending retiree health insurance and freezing

pensions but deceptively calling the changes

improvements, so that CEOs could pump up company

profits with money that had been pledged to workers.

 

While breaking promises to workers and violating

contracts, these CEO 1 percenters falsely portrayed

themselves as beleaguered champions of workers,

valiantly attempting to preserve underfunded pensions.

Like Costa Concordia Captain Francesco Schettino saving

himself while abandoning passengers on his sinking

cruise ship, the captains of industry padded their own

pockets with pension and health care funds intended for

retirees, then deserted the workers. Schultz describes

the CEO scams this way in the book:

 

    "In reality, they're the silent pirates who looted

    the ships and left them to sink, along with the

    retirees, as they sailed away safely in their

    lifeboats."

 

Most of the Costa Concordia passengers survived, but

more than a dozen drowned. In West Virginia, most of

the retirees are still kicking. A leader among the

Century occupiers, Karen Gorrell, explained:

 

    "We may have one foot in the grave, but we are

    kicking like hell with the other."

 

But some have succumbed. Gorrell, wife of a 33-year

veteran aluminum worker, says Century has retiree blood

on its hands.

 

She tells of two tragedies. There's Bryce Earl Turner

who Karen encountered after her first meeting with

Century retirees in Ravenswood. He was scared and sick.

Both alternatives he faced - buying private insurance

or paying for his leukemia treatments out of pocket -

were way beyond his means. Losing his insurance was a

death sentence. The retirees worked desperately to get

him more time.

 

With the help of West Virginia's U.S. senators, Jay

Rockefeller and Joe Manchin, and a provision in Obama's

health care reform law, the retirees managed to get

coverage extended to Sept. 1, 2011. Bryce Earl Turner,

59, who worked 37 years at the aluminum plant, died the

next day.

 

The other tragedy is Sam McKinney. He attended a

meeting of the retirees on Feb. 14, 2011. He said he

feared losing the insurance because his wife was ill.

Karen recounts:

 

    "He was very emotional because he had taken his

    wife to Charleston to try to get some assistance

    with her health care costs and had been turned down."

 

He said, she recalled, that it was hard to believe that

in America after a person expended his usefulness to

industry, a corporation could coldly cast him aside as

if his life had no value.

 

After the meeting, Sam McKinney took his wife to

Outback Steakhouse in Parkersburg for Valentine's Day.

As they left, he collapsed and died in the parking lot.

Karen is sure the stress killed him. Wrongful stress.

Stress he'd not have experienced if Century was good

for its word.

 

Karen says of Turner and McKinney:

 

    "It was murder without a gun."

 

Though Century failed to fulfill its obligation to pay

for retiree health care, it handed its last CEO, Logan

W. Kruger, $4.9 million in 2010. That's twelve times

more than Americans pay their president, the leader of

the free world. Century gave Kruger another $6.2

million to leave last November. Still, he's suing for

$20 million on top of that. Century also is defending

against a lawsuit filed for the retirees by the United

Steelworkers (USW) union, which represented most of the

Century workers.

 

The USW hopes, however, to resolve the dispute outside

the courtroom, with the help of the retirees and West

Virginia lawmakers. The elderly agitators managed to

win the support of the state's U.S. senators, its

governor and its legislature. So last year when Century

went begging to the state for $20 million it claimed it

needed to re-open the Ravenswood smelter, the lawmakers

sent Century away empty handed with a directive to

settle with the retirees before seeking reconsideration.

 

Not long afterward, Century booted Kruger, and the new

management team is negotiating with the USW and the retirees.

 

The protesters don't have what they want yet, and

they're not leaving their tents until they do.

 

Century gave the retiree occupiers port-o-potties and

installed concrete barriers to prevent cars careening

on an icy Route 33 from plowing through the encampment.

 

Very nice gesture. But resuming payment for promised

health insurance would be a whole lot better.

_____________

 

Leo W. Gerard is the international president of the

United Steelworkers union. He is a member of the AFL-

CIO Executive Committee and chairs the labor

federation's Public Policy Committee. President Barack

Obama recently appointed him to the President's

Advisory Committee on Trade Policy and Negotiations. He

serves as co-chairman of the BlueGreen Alliance and on

the boards of the Apollo Alliance, Campaign for

America's Future and the Economic Policy Institute

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