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http://www.spokane.net:80/news-story-body.asp?Date=052099&ID=s579552&cat= May 20, 1999 Spokane Spokesman-Review Steelworkers confront Hurwitz Maxxam CEO tells locked-out workers he's not involved in Kaiser dispute Julie Sullivan -- The Spokesman-Review Spokane -- WATERWOOD, Texas -- Charles Hurwitz faced Spokane Steelworkers on Wednesday but took almost no questions or responsibility for the seven-month strike and lockout at Kaiser Aluminum. Nearly 300 Steelworkers, environmentalists and attorneys flew to Texas for Maxxam Inc.'s annual stockholders meeting. They found the remote country club, then cleared six armed deputies at the gate and twice as many armed officers inside. They passed metal detectors, donned color-coded bracelets and stood in line to speak to Hurwitz. Steelworkers wore suits and dresses; some environmentalists wore costumes. But all eyes were on the Maxxam CEO. "We think he needs to look into the eyes of the families and workers whose lives he's been ruining," said Leo Gerard, the Pittsburgh-based secretary/treasurer of the United Steelworkers union. But Hurwitz said he is not running the longest and most bitter battle ever waged in Kaiser history, although he controls 63 percent of Kaiser Aluminum Corp. "Kaiser has its own management team and board of directors," Hurwitz said. "We are not managing what they are doing. We're not asking them, we're not telling them to do anything. We're listening," said the 58-year-old businessman. Hurwitz heard from shareholders, including the Steelworker-led coalition that waged a campaign to wrest some control of the closely held Maxxam board of directors. The coalition nominated and campaigned for two former Democratic members of Congress -- Howard Metzenbaum and Abner Mikva -- to serve as independent directors. Its actions drew the support of large public employee pension investors from New York to California who are critical of Maxxam's poor financial performance, charges of illegal logging practices at Pacific Lumber Co. and the Kaiser lockout. The results of the proxy vote were not final Wednesday, but Maxxam spokesman Joshua Reiss said preliminary results showed the company's choice of directors would prevail. The labor-green alliance needed to win an extraordinary amount of the votes not held by Hurwitz. But they claimed victory, saying the sheer number of endorsements received by their candidates and the call for revised corporate governance sent a "stunning message," said David Foster, a District 11 director for the United Steelworkers. National union leaders hammered at Kaiser and Maxxam's performance, saying the firms' stock was worth half what it was a few years ago. Forest protection groups leveled criticism at how Maxxam treats timber and people. Activist Darryl Cherney, dressed in glasses, a sport coat and chewing a cigar, told Hurwitz he was appearing "as your conscience." Only twice did the drumbeat of criticism Wednesday seem to affect Hurwitz. Rabbi Les Scharnberg of Humboldt County in Northern California drew the CEO's ire when he noted that the Talmud exhorts Jews to not even keep a servant's wages overnight "much less for seven months in a lockout." When the rabbi asked about human values in the running of his corporation, Hurwitz shot back: "You've had your turn, now it's my turn. We are concerned about people. We are not here for the short term. We've invested $140 million in the (Humboldt County) community. We give large scholarships. There are more employees at Pacific Lumber now than when we got involved." But Hurwitz and others were obviously moved by Cindy Allsbrooks, whose son, David Nathan Chain, was accidentally killed at a Pacific Lumber protest when a tree fell on him. In a soft Texas accent, Allsbrooks asked Hurwitz what was being done to ensure no more young activists are beaten or die. "I would like to say how sorry I am ..," Hurwitz said. "I know you are," she said quickly. "I hold no malice in my heart for you because I know you have sons, too." After the Maxxam meeting, Kaiser Aluminum's annual shareholders meeting was held, drawing more than 230 shareholders (Steelworkers) instead of the usual one or two. The locked-out workers questioned Kaiser CEO George Haymaker and President Ray Milchovich about reports that a Phoenix can company was rejecting Trentwood aluminum as flawed. Haymaker acknowledged there had been flaws with aluminum made by replacement workers but painted a flush forecast for the future. Later, both men reported that free of union job restrictions, there had been substantial productivity gains and reduction in costs at all five plants. Steelworkers questioned whether the company hadn't maneuvered into the situation all along. "We didn't call the strike, you did," Haymaker told Henrietta Wolfe, whose husband, father and grandfather were Kaiser employees. "Why would you bring in trailers and replacement workers before the strike then?" she asked to loud applause. "You don't have to pack a suitcase if you're not going on a trip." The gathering left many Steelworkers invigorated. Others wondered which side to believe and still others think it is now time to start looking for another job. Negotiations resume next week in Denver. Perhaps the biggest surprise was how well organized and peaceful the week's events were, with many crediting John Goodman. Goodman is a Spokane Steelworker raised in Houston whose uncle, C.V. Buster Kerns, was the sheriff of Houston's Harris County for 24 years. It made for warm relations. "Almost everyone we talked to John had played football against, knew their second cousin or was related to," said one union official. At last sight, Goodman was outside the shareholders meetings with San Jacinto County sheriff's deputies, and like them, wearing cowboy boots and a Stetson. He was talking passionately and gesturing earnestly about Kaiser jobs -- and redwood trees.
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