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Steelworkers Ratify New 4-Year Contract with U.S. Steel

09/10/2008 - Union members ratify a new 4-year labor agreement between the United Steelworkers and U.S. Steel in a mail-in secret ballot vote that concluded Tuesday at union headquarters.

Union members have ratified a new 4-year labor agreement between the United Steelworkers (USW) and U.S. Steel. The mail-in secret ballot vote of 10571 to 2670 was concluded Tuesday at the union's headquarters.
 

The newly ratified labor agreement covers some 16,000 union members at 14 U. S. Steel facilities:
 
  • Granite City, Ill.
  • Gary, Ind.
  • East Chicago, Ind.
  • Portage, Ind.
  • Ecorse, Mich.
  • Braddock, Pa.
  • Clairton, Pa.
  • West Mifflin, Pa.
  • Fairless Hills, Pa.
  • Fairfield, Ala.
  • Lorain, Ohio
  • Keewatin, Minn.
  • Mt. Iron, Minn.
  • Lone Star, Texas.
Highlights of the new agreement, which covers some 16,000 union members at 14 locations, include a $6,000 cash payment before October 1, a $1 an hour increase retroactive to September 1, and 4% wage increases in years two, three and four.

 
Under the new agreement, beginning in 2009, if profit-sharing payments for any quarter are more than $10 per hour due to the company's European operations, the excess money will be banked. In addition, if profit sharing exceeds $20,000 a year per member, the excess will be contributed to the trust account designed to help offset future health care costs.
 
Minimum pension formula multipliers will be increased under the new agreement as detailed below for all current U.S. Steel Employees who are covered under the U.S. Steel Carnegie Pension Fund:
 
  • Up to 30 years, accrued prior to Jan. 1, 2009, + $65
  • Years of service over 30 years, accrued prior to Jan. 1, 2009, + $85
  • All years of service, going forward from Jan. 1, 2009, + $100
 
For U.S. Steel Employees covered by the Steelworkers Pension Trust (SPT), the new agreement increases the contribution rate from $1.80 to $2.65 per hour, resulting in a $100 monthly pension multiplier.
 
The new labor agreement also improves existing medical, prescription drug, dental, vision, life insurance and Sick and Accident (S&A) benefits for all eligible employees. Prescription drug co-pays are unchanged.
 
For retiree health care funding, USS will establish a separate "restricted" account within VEBA that will be funded with a minimum of $350 million over the term of the new agreement. This money will be set aside for use in future rounds of bargaining and can only be used at the discretion of the USW.
 
The new plan is designed for retiree benefits to mirror the health care plan for active employees. Retiree premiums will be reduced to $150 for pre-Medicare retirees and $75 for Medicare eligible retirees, with the amounts fixed for the term of the agreement. Similarly, premiums for surviving spouses are reduced to $125 for pre-Medicare surviving spouses and $50 for Medicare eligible surviving spouses; these amounts are also fixed for the term of the agreement.
 
Annual surviving spouse payments have been increased under the new agreement. Retirements prior to 1974 will receive $1,100 annual payments and retirements 1974 and later will receive $800 annual payments.
 
"This is an historic agreement that completes the restructuring of the steel industry following its near collapse five years ago when a global financial crisis plunged company after company into bankruptcy," said USW International President Leo W. Gerard. "The hard work of our members was instrumental in rescuing the industry and putting it back onto the road of profit that it rides today."
 
"We've won good wage and pension increases in this contract and our members are well deserving of it," he said. "Our union has always negotiated a pattern in basic steel and this contract sets the standard for agreements that come next."
 
In addition to its economic provisions, the new agreement requires the company to make significant capital investment in its domestic plants in order to maintain the state-of-the-art that will allow them to remain competitive in a global steel market.
 
The agreement also provides for an "Energy Efficiency and Carbon Emissions Task Force" where the union and company will work together to protect and benefit the industry and the environment.
 
In addition to economic issues, many problems dealing with local working conditions, including seniority and outsourcing of work were resolved.
 
"It's the best basic steel contract that we've had in the last 30 years," said USW Vice President Tom Conway, who served as the union's chief negotiator. "The industry's restructuring is over. We've protected our plants in the past and now, in the future, with the company's commitment for capital investment."
 
"We've looked after our retirees and those who will retire in the future," he said. "We've been very responsive to our membership and very responsible in the best business sense. Our membership is looking forward to the next few years with enthusiasm."
 
The new agreement is retroactive to September 1, covering USW members employed at U.S. Steel plants in Granite City, Ill.; Gary, East Chicago, Portage, Ind.; Ecorse, Mich.; Braddock, Clairton, West Mifflin and Fairless Hills, Pa.; Fairfield, Ala.; Lorain, Ohio; Keewatin and Mt. Iron, Minn.; and Lone Star, Texas.