USW continues fight for antidumping tariffs

With no major contract negotiations going on with tire producers in 2021, the United Steelworkers spent a lot of time fighting for antidumping duties to be levied on imports it believes are undercutting U.S. tire production.

Battles over what the union considered unfair imports started early in the year, when the U.S. Department of Commerce preliminarily ruled that passenger and light truck tires imported from South Korea, Taiwan, Thailand and Vietnam should be subject to antidumping duties ranging up to 98.44 percent.

"For too long, bad actors seeking to exploit the U.S. market have engaged in illegal dumping, undercutting domestic manufacturers' ability to compete on a level playing field," the USW said in a statement.

The union then told the DOC it opposed a proposal from Taiwan's leading tire makers to suspend the pending antidumping investigation into imports of passenger and light truck tires from Taiwan in exchange for pricing oversight provisions.

Later in the year, the International Trade Commission voted to uphold antidumping duties on consumer tires from South Korea, Taiwan and Thailand, but dismissed Vietnam from the case. It did, however, enact lower countervailing duties on tire makers from Vietnam.

The USW represents about 12,000 workers at eight consumer tire factories in the U.S., while 16 other non-unionized tire plants in the U.S. produce P/LT tires, with roughly 20,000 workers. Throughout its years of fighting for antidumping tariffs, the Steelworkers leadership has maintained that, while its members are its first priority, in these cases the entire U.S. tire manufacturing sector benefits when the tariffs are enacted.

"Underselling at significant margins was nearly universal in all products, covering tires from all countries and regardless of whether the imports and domestic product were branded or private label," the USW said in relation to this particular case.

As has been the case with all the dumping petitions the USW has brought over the years, no U.S.-based tire maker testified in favor of the duties.

When asked by ITC commissioners why U.S. tire makers that supposedly are being harmed weren't part of this action, USW President Tom Conway called U.S. tire makers "spineless" and said: "Companies won't join the case because they're scared of China ... of getting their tires blocked from the marketplace there," or having power cut to their factories there.

Two tire companies with manufacturing in the U.S. did testify against the duties: Hankook Tire USA Inc., whose employees are non-union and its parent firm is based in South Korea; and Sumitomo Rubber North America Inc., whose workers are represented by the USW.

Richard Smallwood, president and CEO of Sumitomo Rubber North America, testified that the "U.S. tire market is in a state of constant and accelerating transition, and producers in the U.S. do not have the capacity or production flexibility to fully and profitably service all market segments."

In another trade action that took place in 2021, the USW was in favor of an interim deal between the U.S. and European Union to amend the tariff structures on U.S. aluminum and steel imports from the EU. Many in the industry saw the measure as relief for domestic manufacturers and a platform from which carbon emissions can be addressed.

"Engaging with our allies is a necessary step in this process, and this arrangement offers a path forward toward working together to address this larger concern," Conway said of the deal. "Combating climate change will also require coordinating with our partners. Both the U.S. and European industries have demonstrated a commitment to reducing the carbon intensity of their products, and working together will ultimately provide results for workers and our environment."

The year didn't go without a couple of tussles between the Steelworkers and tire manufacturers.

Early in the year, the National Labor Relations Board certified the USW as the bargaining unit for the Kumho Tire USA Inc. production plant in Georgia. The two sides had battled over the union's organizational attempts for years before this decision came down.

Not long after, the union asked the Macon-Bibb County Industrial Authority to "intervene in a deadly COVID-19 outbreak at the Georgia plant." The USW alleged "at least 12 workers contracted the virus and one died in the latest wave of infections affecting the facility."

But Kumho pushed back against union allegations regarding the company's actions during the pandemic. "The union's statement that the company is not implementing the kinds of safety precautions now standard in most U.S. workplaces is without merit," Keith Lolley, human resources director at the plant, said in an email statement.

The Steelworkers also engaged with Giti Tire (USA) Ltd., which produces tires at a factory in Richburg, S.C. First the USW said Giti didn't qualify for millions of dollars in federal COVID-19 relief because it permanently laid off workers after accepting $8 million in Paycheck Protection Program funding designed to keep workers on the job.

Then the union claimed that Giti was mistreating workers at the Richburg facility. A group of more than 40 community leaders sent a letter in November to the firm's CEO, making claims of "low wages, unpredictable schedules and oppressive amounts of mandatory overtime that leave workers no time for their families."

Giti Tire rejected the claims, linking the allegations to a union membership drive at the site.

"People who have been a part of our community, and surrounding communities, know that you can have problems with union representation that can hurt job security and long-term success," David Shelton, Giti's director of industry relations, said in a statement.