Steel Mills
US Steel Workers to begin Voting on New Contract
Written by Sandy Williams
January 12, 2016
Workers at US Steel will receive ballots and a summary of the tentative three-year contract this week. Over the next two weeks steelworkers will cast their votes on whether to ratify or reject the new contract. The USW said it expects to count ballots on February 1.
The USW has urged the membership to ratify the deal with US Steel. “This is an agreement that we believe is right for the time in which we find ourselves,” wrote the negotiating committee in the Summary introduction. The USW described the difficulties facing the U.S. steel industry:
“The steel industry and basic commodity industries across our nation have been under a relentless attack from unfairly and illegally sourced imported products. We are under a constant attack, up and down the list of steel grades and across the end use markets….”
“For the largest of the countries dumping steel in the U.S. market there is no bottom. Their export pricing and volumes are not based on market economics, but an effort to preserve their own domestic employment levels and overcapacity. For our domestic steelmakers it is a downward spiral with no end in the near future.”
The Committee said it was able to fight back against the steel company’s attempt to “exploit the situation to seek deep concessions and making sweeping changes to our labor agreements.”
“It was against this background that we reached the enclosed settlement, which we bring to your with a recommendation for its ratification,” wrote the Committee. “We were able to hold the line and push back against deep concessionary demands while employing a strategy that allowed us to keep working and avoid a strike or lockout.”
The new contract does not include any increase in wages but does bump up profit sharing from 10 percent to 15 percent when profits exceed $50 per ton shipped per quarter.
Workers will find some changes to health care benefits in the new contract. US Steel union workers will pay a deductible for the first time, $200/year for an individual and $400/year for a family. Out of pocket maximum remain the same as in the previous contract but copays will increase $5 to $10 dollars depending on the type of medical visit. Pension benefits are relatively unchanged.
Contract talks are continuing at ArcelorMittal and at Allegheny Technologies.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Gerdau to buy ferrous scrap recycling ops in Mississippi River Valley
Gerdau Long Steel North America plans to acquire the assets of Dale’s Recycling Partnership.
USS Q3 guidance: Prices have bottomed, expansions on track
U.S. Steel expects third-quarter adjusted earnings of approximately $300 million, according to figures released on Thursday. The Pittsburgh-based steelmaker said the result was in line with prior guidance and came despite “challenging pricing dynamics.” The company also said the third quarter likely reflected a “bottoming steel price environment.”
Decision on fate of USS/Nippon deal pushed to after elections: Report
The US government’s decision on whether it will block Nippon Steel’s acquisition of U.S. Steel on national security grounds has been pushed until after the November elections.
Cliffs steadfast in commitment to Middletown decarb project
Cleveland-Cliffs Inc. on Monday reiterated its commitment to a major decarbonization project at its Middletown Works in Ohio, despite an earlier report suggesting otherwise.
Nucor expects lower steel prices to drive Q3 earnings decline
Nucor blamed lower steel prices for weaker third-quarter results in earnings guidance released on Tuesday.