Market Segment
Tensions Rise Between USS and USW, Still No Deal
Written by David Schollaert
September 23, 2022
The United Steelworkers union and US Steel traded blows as bargaining talks on a new labor deal continued well past the Sept. 1 expiration of a prior agreement.
The USW said in an update to its members on Sept. 22 that the Pittsburgh-based steelmaker had failed to invest in its union-represented facilities as promised. The union also alleged that the company’s current proposal on investments was ultimately a “dis-investment” because it lacked “what is needed to keep our plants safe and competitive.”
US Steel hit back, saying that investment in USW-represented facilities remained a priority. The company underscored the $5.3 billion it has invested in its USW plants since 2018.
The USW and US Steel agreed on Aug. 31 to extend the terms of their prior contract and to continue negotiating toward new deal. But the two sides have made little progress since bargaining began in mid-July.
A lockout or strike would begin in the event the extension is terminated. Either party can terminate talks provided they give a 48-hour notice.
At the crux of USW criticisms: that US Steel “broke promises” at its Mon Valley Works in western Pennsylvania. The union highlighted the cancelation of a planned $1.2 billion investment in a state-of-the art casting and rolling facility at its Edgar Thomson Plant, a union mill in Braddock, Pa. The USW said that capital had been redirected to US Steel’s Big River Steel Works, a non-union EAF sheet mill in Osceola, Ark.
The USW proposed that US Steel invest $4 billion at its union-represented facilities over the next four years to “keep faith with its workforce.” The union said US Steel should construct a new EAF mill and DRI plant at Mon Valley Works. It also said the company should rebuild the A blast furnace at its Granite City works near St. Louis rather than selling it to SunCoke.
“We’re already prioritizing investing in our facilities,” US Steel said in a statement. “The $1 billion investment in the current proposed agreement is just a continuation of the work we’ve been doing for years.”
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Market Segment
Nucor targets ‘white hot’ data center boom
With infrastructure demand shifting toward digital capacity, Nucor Corp. is positioning itself as the go-to steel supplier for the data center boom.
Gerdau’s N. American earnings rise in Q3 due to fall in imports
Gerdau’s North American profits rose in the third quarter, boosted by a decline in imports due to Section 232 steel tariffs.
Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.