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Mikulski Urges Steel Execs to Turn Down Bonuses

"If there’s $20 million available at RG Steel, why isn’t it going to the workers?" —U.S. Sen. Barbara Mikulski

 

U.S. Sen. Barbara Mikulski has written a letter strongly urging RG Steel's top executives to voluntarily give up their million dollar bonuses and instead support the 2,000 workers who will be laid off when the company's Sparrows Point plant completely shuts down.

“It is outrageous and unacceptable for executives to reward themselves with bonuses while laid-off workers are struggling to make ends meet,” Mikulski said in a statement. “Right now what we see over at RG Steel is a demonstration of moral bankruptcy. I called on the executives of RG Steel today to end this destructive culture of greed and self-enrichment.”

A federal bankruptcy court judge approved a booms pool of about $20 million to be paid to 10 top executives, dependent upon the sale of the company's assets at a price sufficient to pay off major creditors.

In addition to the letter, Mikulski earlier this week announced her cosponsorship of the Protecting Employees and Retirees in Business Bankruptcies Act, which curbs abuses that deprive employees and retirees of their earnings and retirements savings when businesses collapse.

Here is the full text of Mikulski's letter:

July 26, 2012

Mr. V. John Goodwin
President and CEO
RG Steel Sparrows Point, LLC
1430 Sparrows Point Boulevard
Sparrows Point, Maryland 21219-1039

Mr. James S. Tumulty
Senior Managing Director
The Seaport Group, LLC
360 Madison Avenue, 36th Floor
New York, NY 10017

Dear Messrs Goodwin & Tumulty:

I write to express my outrage at reports that 10 executives at RG Steel are expected to receive over $20 million in bonuses while 2,000 of my constituents at the Sparrows Point mill have been laid off.

I am currently working with members of the Maryland Congressional delegation to fight for every dollar of federal assistance that can be used to help the workers at Sparrows Point while a new buyer is sought to preserve steel production in Baltimore. If there’s $20 million available at RG Steel, why isn’t it going to the workers? Why isn’t it going to the local businesses that have contracts with RG Steel?

Every dollar is needed to shore up the safety net for these workers who lost their jobs through no fault of their own, for the community of local businesses that has been hurt by this bankruptcy, and to attract a new owner to continue making steel in Sparrows Point. It is outrageous that $20 million will be used for bonuses.

I strongly urge you to voluntarily give up your bonuses. I’ve cosponsored the Protecting Employees and Retirees in Business Bankruptcies Act (S. 3381) to prevent this from happening in the future. I look forward to your response.

Related Topics: RG Steel, RG Steel bankruptcy, and U.S. Sen. Barbara Mikulski

Matthew

11:19 am on Friday, July 27, 2012

And upon the grandstand she goes. "...destructive culture of greed and self-enrichment...," the same could be said about the U.S. Senate.

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jason

11:23 am on Friday, July 27, 2012

I love to see Senators working for the people, because that is who voted and hired them. I support anything U.S. Sen. Barbara Mikulski has said or has done. It has always been for the working class.

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kevin

10:23 pm on Sunday, July 29, 2012

This is the same senator who made sure Sparrows Point employees didn't get lump sum retirement payments because of her union friends wanted to manage pensions.How'd that work out? Fact is if they agreed to lump sum payouts they would have received it when bethlehelm went bankrupt.

ROBERT (BOB) NOZEIKA

11:43 am on Friday, July 27, 2012

BOB
ONE OF THE FIRST TIMES I AGREE, WITH THE SENATOR

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John T.

12:16 pm on Friday, July 27, 2012

What nerve! I propose that Senator Mikulski and the rest of Congress return 50% of their pay for doing such a poor job for the American people. When a business constantly does poorly (loses money), it will eventually close if the problems cannot be corrected, but Congress just keeps spending us into a debt that will result in a lower standard of living for the future generations that will have to pay for it. What a screw job we are doing to our grandhildren! But when she spouts off like this she knows nothing will come of it, but strengthen her position amongst the schmoes that continue to vote for her and the same old stuff.

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John T.

12:19 pm on Friday, July 27, 2012

"Moral bankruptcy" - See Congress.

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John T.

12:22 pm on Friday, July 27, 2012

I feel for anyone who has lost their job, but I must ask why is so much attention being placed on the laid off steel workers when there are millions of people who have been laid off from other industries? I think we all kno the answer to this one.

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DARRELL HAMMERBACKER

6:05 pm on Friday, July 27, 2012

Barbara how about giving up your Premium Healthcare and give up milking the Middle Class

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Rob

9:19 pm on Friday, July 27, 2012

This classless ass has taken more bonuses then she can spend. I want to puke every time I hear politicians speak especially a democrat politician because they have fooled the majority of their base by claiming to be for the poor and middle class, just look at Jason's post above. I defy anyone to show me where anyone poor, middle class or rich has benefitted from a government handout. If you really believe that this woman helps anyone then put your money where your mouth is and quit your job and rely on the government to support you then tell me how great it is. Honestly the only people that could actually believe any of that crap is more than likely someone who is already accepting government handouts and doesn't want to provide for themselves. I gotta go cause I feel a bit queasy...

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jeff holcomb

10:37 pm on Friday, July 27, 2012

As a ex-steelworker for beth steel we heard the same line of crap from good ole Barbra at about the same time,election time,after she and her fellow democrats lied for steelworker votes they abandoned us till the next time they needed them.they did nothing for us then and if anyone thinks they are now they are truly dis-allusionedl

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Gary

11:53 am on Saturday, July 28, 2012

Practice what you preach Barbara - US Senators are grossly overpaid for what they deliver to the people - why isn't some your (senator's) salaries going to the people? Again another hypocritical politician (and she is one of the worse). Let's get term limits for these yahoos who prosper at our expense! Serving in the US Government should be a two term max and be considered serving one's country - not a chance to get get rich and greedy.

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John T.

12:03 pm on Saturday, July 28, 2012

I agree with term limits but it wouldn't come fast enough to get her out of offce.. She's suppose to keep her seat warm, then retire after O'malley's finishes in 2014. He will be appointed to finish her term by the next democratic Governor. They carve up the pie how ever they want because they know they can. Isn't that nice? But that's what a one party state gets you.

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John T.

12:06 pm on Saturday, July 28, 2012

And Barbara, if there is $20 million dollars available, a better question is why isn't it going to the creditors? You know, the pople that lent RG Steel money to continue to operate. They're the ones that are getting hosed.

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John Clarke

8:25 am on Sunday, July 29, 2012

Barbara needs to give up her own pay and bonuses before she asks someone else to. She was good at one time when she worked for the people, now she is just like her other cronies in Washington and take from the people.

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Buzz Beeler

11:59 am on Sunday, July 29, 2012

She sent two reps to a CASA rally but did not have time to respond to a concern from one of the greatest leaders in the county's history. Getting response from her office is like winning the lottery - you're extremely lucky if you do.

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kevin

10:26 pm on Sunday, July 29, 2012

Just post it on Union letterhead.

kevin

10:30 pm on Sunday, July 29, 2012

Isn't that Joe Curran behind her ? exactly how much is he getting yearly from his appointed job? Is it $250,000 or $500,000 a year I'm not sure but I think he has taken it for at least 6 years. How is that IWIF helping out the laid off workers Barb?

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John T.

9:56 am on Monday, July 30, 2012

You need to stop bashing Babs. Everything she does is for US. She's always fightng for US. She is selfless, a real Mother Theresa. As far as her pay and benefits, she deserves every penny, because if she would have chose the private sector instead of being a "public servant", she would she would have made so many more millions than the millions she's made in the last 40 years fighting for US. Sounds good, and there are a lot of sheep that believe that, unfortunately.

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Buzz Beeler

11:09 am on Monday, July 30, 2012

John, I hate to take issue with you but look where the country is? Did you read my earlier comment that she won't even respond to respected national figure because she is too busy dealing with CASA. Did you see 60 Minutes Sunday on homeless children in the country? Our $15 trillion debts threatens the entire financial stability of this nation.

She talks a good talk but the walking is highly questionable. I'm sure many of our unemployed veterans might also have a few things to say about Congress and their lowest ratings on record in recent memory.

Did you ever read about the net worth increase before and after stints in Congress and the Senate. "Public servant," the question who is serving whom?

Ronald Brake

12:27 pm on Monday, July 30, 2012

As an outsider who doesn't know Babs, I have to agree with her letter!

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John T.

12:54 pm on Monday, July 30, 2012

Problems with her statement: She is smart enough to know that it is not as simple as giving the bonuses back and distributing that money to the unionized part of the company's workforce, but it sounds good and she benefits from it. Further, there are programs in place, and Mikulski and Cardin will be pushing for even more programs specifically aimed to help laid off steel workers. There are thousands of laid off workers in other industries, so why are steel workers treated any differently then others who have been out of work even longer? Who is more deserving of consideration for that $20 million? What about the creditors who lent RG Steel the money to continue operating and to pay expenses, including payroll? Shouldn't that money go to them first? But, it sounds good and it does what she needs it to do for the sheep that follow her blindly.

John T.

12:31 pm on Monday, July 30, 2012

Buzz: I'm just joking. These people, such as Mikulski, get into politics and do quite well for themselves, all the while they call themselves "Public Servants" and are allowed to get away with it. How many raises has Congress given themselves in the last 4 years, while the private sector has been struggling with a slow economy?

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