USWA Announces: Tri-Met Board Picks PST Rail Over Oregon Steel.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 24, 2001

USWA Says Hometown Company Haunted by Continuing Labor Dispute,

History of Violating Labor, Environmental and

Workplace Health and Safety Laws

According to USWA, Tri-Met's Board voted unanimously (5 to 0) today to approve its Source Evaluation Committee's recommendation and awarded Pennsylvania Steel Technologies (PST), through its broker L.B. Foster Co., the contract to provide rail for the Interstate Max project.

Also according to USWA, the Source Evaluation Committee Report says the bid involving PST rail scored the highest points, beating the closest Oregon Steel/rocky Mountain Steel Mills (RMSM) bid by nearly 5%, in the committee's objective evaluation system. Bids were subjected to review regarding the following criteria: Experience and Delivery Record; Manufacturing Capability; Quality Control Performance; Cost.

USWA says the Report also states that Oregon Steel Mills lost points and scored well below PST in the Manufacturing Capability section in large part due to the uncertainties and risks associated with the company's ongoing labor dispute and potential liabilities for its violations of labor, workplace health and safety, and environmental laws. The committee and the board concluded that the company's troubles pose a potential risk to the timely delivery of the rail and the timely completion of the Interstate Max project. Oregon Steel/Rocky Mountain Steel Mills also scored lower in the Quality Control Performance section.

"Despite submitting a lower bid, Oregon Steel lost in its own backyard," said Steelworkers spokesman Scott Adams.

"The board voted to protect taxpayers' best interests after weighing the risks of costly construction delays that could result from Oregon Steel's ongoing labor dispute and its potential legal liabilities. The hometown company is haunted by its history of violating labor, environmental and workplace health and safety laws," added Adams.

Public transit agencies across the country have been closely scrutinizing the record of Oregon Steel's subsidiary, Rocky Mountain Steel Mills. Tri-Met's decision, based on concerns about reliability, could pose problems for Oregon Steel/RMSM on future rail contracts in Sacramento, San Jose, Denver and Minneapolis.

Adams remarked, "The Tri-Met vote should serve as a wakeup call for Oregon Steel. The company can no longer hide from its lawless record. It's time to end the costly and illegal 40 month long unlawful assault on its workforce and return all union workers to their jobs with a fair contract."