). As a result, the political climate at both the local and federal level was conducive to the company emerging from the bankruptcy successfully, and politicians might be expected to get involved in the situation.
Dennis Kucinich is a Democratic representative from Ohio who took an interest in the case. It is his constituents who would be hurt directly (through lost jobs) and indirectly (through lost tax revenues) if the company were to fail. Kucinich worked with the company, its creditors and the United Steelworkers union (once among the most powerful unions in the nation) to bring about a successful resolution to the company's financial problems. However, Kucinich did not seek protectionist measures at the federal level that would have helped stem the import of foreign steel. According to the company's management, imported steel, which is sold for considerably less than American steel, has been the bane of the industry throughout the 1990s, but particularly since the mid-1990s. Since 1997, more than 20 American steel companies sought bankruptcy protection ("Trouble," 2002).
In early 2001, the company's CEO sought union concessions worth more than $800 million; the savings would be gained without affecting workers' wages, but considerable concessions were nonetheless pursued. As an example, the company sought to move its current employees into a managed health care program (the same program to which management already subscribed) in order to save costs. At the same time, the company also sought to reduce the health care benefits provided to its pensioners (the company estimated the savings from this move at $80 million). Although the union was willing to consider modifying the health care program for its current employees, it was not willing to let its pensioners lose any of their health care benefits. Management maintained that the company's 7500 workers could not support the health care costs of themselves plus the 50...