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USWA: Oregon Steel Blames Union for Company's Self-Inflicted Wounds

3 February 2000

USWA: Oregon Steel Blames Union for Company's Self-Inflicted Wounds

    SACRAMENTO, Calif., Feb. 2 -- The United Steelworkers of
America released the following statement here today:

    Like a spoiled child who blames everyone else for its problems, Oregon
Steel Mills, Inc. and its Rocky Mountain Steel Mills subsidiary
today blamed the United Steelworkers of America for the company's mounting
regulatory and legal problems.
    A look at the record however, reveals a pattern of self-inflicted wounds
by the ailing steel company.
    The ever-growing list of labor, environmental, and health and safety
violations is causing transit agencies, stock analysts, shareholders and
elected leaders to distance themselves from the company.
    For example, Rocky Mountain Steel Mills is:

    *  Being sued by the Colorado health department for continually polluting
       the air in violation of the federal Clean Air Act.

    *  Charged by the United States government with more than 100 violations
       of federal labor law.

    *  Facing potential back-pay liability of up to $300,000,000.00 for
       illegally replacing its unionized workforce with the inexperienced
       substitutes who are now making rail for the company.

    *  Received the second largest OSHA fine in the history of Colorado for
       its health and safety violations.

    The Bay Area Rapid Transit District (BART) recently decided to utilize
alternative suppliers for its upcoming rail orders.  As Dan Richard,
President of the BART Board of Directors, wrote to Oregon Steel CEO
Joe Corvin on December 15th, "Due to the continuing pattern of violations
[and] concerns over quality ... the District has now decided to utilize
alternative suppliers for its upcoming rail orders."
    On January 24th, The Sacramento Regional Transit Board voted unanimously
to take the extraordinary action of conducting an investigation into Rocky
Mountain Steel's status as a "responsible contractor."
    The RT Board may determine that the company is not a "responsible
contractor" based on its "ability to comply with all relevant laws."  Such a
determination by the Board would be another huge blow to Oregon Steel.  Oregon
Steel stockholders, transit agencies, and industry analysts will be watching
the upcoming Sacramento RT proceeding on March 13 with great interest.

    Last Friday Oregon Steel stock dropped to an historic low, when the
company announced dismal 4th quarter earnings.  Oregon Steel also
announced it will be cutting its dividend from  $.14 to $.02 per share.
    Members of United Steelworkers Local 2102 and 3267 went on strike
against Oregon Steel's Pueblo, Colorado, subsidiary (now doing business
of Rocky Mountain Steel Mills) on October 3, 1997.  When they ended
their strike three months later, management unlawfully refused to
reinstate the vast majority of Steelworkers to their jobs, exposing the
company to a potential back-pay liability that could reach $300 million
if litigated to the end of the appeals process.