PITTSBURGH — U.S. Steel and the union representing more than 11,000 of its employees, including those at the Mon Valley Works, have reached a tentative agreement on a new four-year contract.
The tentative agreement includes a 5% base wage increase each year for four years, a $4,000 bonus payable upon ratification, increased contributions to pensions and uncapped profit-sharing, according to the Pittsburgh-based steelmaker. Current health care options will be maintained under the deal.
The company is also committing to a $1 billion capital investment in operations staffed by United Steelworkers members over the life of the contract. In his announcement, U.S. Steel President and CEO David B. Burritt noted the ratification process typically takes several weeks.
USW District 7 Director Michael Millsap, who chaired the negotiations for the union, said the bargaining committee unanimously recommended the tentative agreement for ratification.
David Burritt, chief executive officer of U.S. Steel Corp., speaks ahead of an appearance in 2018.
"Simply put, these essential workers have earned and deserve a fair contract at U.S. Steel,” Millsap said in a statement issued by the union. "The proposed agreement provides important economic and contract language improvements that will improve working conditions along with the standard of living for USW members and their families."
The two sides had agreed to extend talks after their contract was set to expire in September. The steelmaker had proposed wage increases of 13% over the life of the four-year contract, premium-free health care coverage, a $7,000 signing bonus and uncapped profit-sharing — an offer the union called “substandard.”
The tentative agreement announced this week covers USW-represented employees at the company’s domestic flat-rolled facilities, iron ore mining facilities and applicable tubular operations.
Burritt said the deal leveraged a strong balance sheet, as well as leveraging an overfunded pension plan.
“The tentative agreement reflects our core belief that when U S. Steel does well, employees do well,” he said.
In its most recent earnings report in late October, the company beat earnings estimates but reported “demand headwinds” that kept some of its operations idled, including its Mon Valley works. Blast Furnace No. 8 at the company’s Gary Works in Indiana was also temporarily shut “due to market conditions and continued high levels of imports.”
It’s been a busy year for the industry and contract negotiators.
In October, a four-year contract covering nearly 12,000 members working at 13 Cleveland-Cliffs Steel sites in six states, including Butler Works and Monessen Coke in Pennsylvania, was ratified.
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