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Steelworkers Ratify North Star Contracts

Jan. 14, 2004 — The United Steelworkers of America (USWA) members have approved new contracts at North Star Steel's Wilton, Iowa, Beaumont, Texas, and St. Paul, Minn., locations.

Negotiations had been ongoing since early 2002, and were at times very difficult. Tentative agreement was reached late last week, and vote tabulation finished on Tuesday.

In addition to wage and other gains, the new agreements covering the Iowa and Texas locations maintain health coverage for current retirees and establish a voluntary employee benefit association (VEBA) trust to offset the costs of medical benefits for future retirees. At St. Paul, the company has agreed to continue to provide retiree insurance for eligible employees. Contributions for medical coverage from active employees and retirees have been capped for 2005, limiting the amount North Star Steelworkers can be charged when insurance premiums rise.

The new contracts also include Successorship provisions that will provide North Star employees with an unprecedented level of protection against an array of risks that could tend to occur when a corporate parent disposes of a plant or business, such as the loss of jobs, wages and benefits and even union rights. The new agreements will also expire in much closer proximity than the previous contracts.

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