PITTSBURGH - The announced intention of the Pension Benefit Guaranty Corporation (PBGC) to terminate seven National Steel Corporation (OTC BB: NSTLB) pension plans is both unnecessary and premature, the United Steelworkers of America (USWA) said here today.

�gIn this era of unbridled corporate greed, we are disappointed, but not surprised, that the PBGC has acted to limit its own liability rather than fulfill its mandate to protect the pension benefits of workers and retirees like those at National Steel,�h said Leo W. Gerard, USWA international president.

Gerard pointed out that National Steel, which filed for bankruptcy in March, is still developing a restructuring plan to emerge from bankruptcy and has improved its cash flow in recent months. The USWA, which represents most workers at National Steel operations, has been an active participant in those proceedings. Gerard also noted that the USWA will seek to intervene in any termination proceedings in order to protect the interests of its thousands of active and retired members at National Steel.

�gThis is not a situation where the PBGC was forced to act to prevent loss of jobs or pensions, or to preserve the company�fs solvency,�h explained Harry E. Lester, director of USWA District 2 and chair of the union�fs National Steel bargaining committee. �gNational Steel�fs liquidity is strong and improving, there is plenty of cash to meet operating costs and retirees continue to receive their pension checks.�h

�gIt�fs especially disappointing that the PBGC is taking this action when steel tariffs have started to work by restoring prices and stabilizing steel markets,�h added Jim Robinson, director of USWA District 7 and secretary of the union�fs National Steel bargaining committee. �gNow - when National Steel is earning more and borrowing less - is not the time to pull the plug on workers and retirees,�h he said.

David Foster, director of USWA District 11 and chairman of the USWA�fs Iron Ore Industry Conference, expressed concern about the impact of any termination of the National Steel Pellet Company pension plan on Minnesota�fs already beleaguered Mesabi iron range.

�gThe proposed termination is part of the effort by the Bush Administration to restructure an industry decimated by decades of unfair trade on the backs of its workers and retirees,�h stated Foster. �gThe potential loss of a number of current retirement options will be particularly devastating to employees and underscores the need for pension law reform to help protect those who are most in need.�h

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