PITTSBURGH, Pa.—With the United Steelworkers’ contracts with two major steelmakers expiring at
midnight Sept. 1, U.S. Steel has proposed a seven-year deal that would cut wages and benefits for future hires—and phase out raises for all workers in favor of profit-sharing bonuses. The proposal would give the more than 16,000 union employees signing bonuses of $1,500 and raises of 3.25%, 2%, and 1% over the next three years—but after that, only bonuses of up to 5% of their salary if the company meets its revenue targets. “After our many sacrifices and diligent work to keep this company in operation through tough times, and the misery our members have suffered in many locations, this is an extremely insulting proposal,” the Steelworkers responded. With the steel industry battered by foreign competition earlier in the decade, union workers have gone six years without a raise at U.S. Steel and three years without one at competitor ArcelorMittal. The U.S. Steel proposal would also pay new hires 20% less than what current workers earn, as well as raising health costs for all employees and retirees. ArcelorMittal has also demanded concessions, in a proposal the Steelworkers as “unacceptable.” Read more
