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U. S. Steel Employees Ratify New Collective Bargaining Agreements
09/11/2008 - United Steelworkers-represented employees ratify two new four-year collective bargaining agreements with United States Steel and its U. S. Steel Tubular Products subsidiary.
United States Steel Corp. and its U. S. Steel Tubular Products, Inc. subsidiary announced that its United Steelworkers-represented employees have ratified two new four-year collective bargaining agreements.
One agreement covers some 16,000 employees at U. S. Steel's domestic flat-rolled and iron ore mining facilities as well as tubular operations in Lorain, Ohio, and Fairfield, Ala.. A second agreement covers approximately 900 employees at U. S. Steel Tubular Products, Inc.'s Texas Operations Division, a welded tubular products facility in Lone Star, Texas.
One agreement covers some 16,000 employees at U. S. Steel's domestic flat-rolled and iron ore mining facilities as well as tubular operations in Lorain, Ohio, and Fairfield, Ala.. A second agreement covers approximately 900 employees at U. S. Steel Tubular Products, Inc.'s Texas Operations Division, a welded tubular products facility in Lone Star, Texas.
"U. S. Steel is pleased with the outcome of the ratification vote,” said U. S. Steel Chairman and CEO John P. Surma, commenting on the announcement. “The newly approved four-year contracts are in the best interests of our company and our many stakeholders."
The agreements, which are effective Sept. 1, contain no-strike provisions and expire on Sept. 1, 2012. Employees (other than those at the Texas Operations Division) will receive a signing bonus of $6000, a wage
increase of $1 per hour effective Sept. 1, and a 4% wage increase on each successive Sep. 1 through 2011. Texas Operations Division employees will receive a signing bonus of $5000, initial wage increases ranging from
$0.65 to $0.91 per hour, the same 4% increases each Sep. 1 through 2011.
Pension and other benefit enhancements for both current employees and retirees are included in the new agreements. The profit sharing plan from the 2003 agreement has been continued in the new agreements, and will now include all tubular operations.
At certain high levels of income from operations, some profit-sharing amounts will be contributed to the trust for retiree health care and life insurance. In addition to other mandatory contributions to this trust, U. S. Steel will contribute $75 million annually during the four-year term to a restricted account within the trust. Use of these funds for beneficiaries of the trust will be determined in the future collective bargaining of a successor labor agreement.
The company noted that the financial impacts of the new agreements would be reflected beginning in the third quarter 2008 financial statements. These effects will include a pre-tax charge of approximately $100 million for the signing bonus payments.
