Corporation has submitted a revised contract proposal to the United
Steelworkers which the company says “reflects the ongoing dialogue during
our most recent round of negotiations.”
According to a
statement released just before deadline today, the “six-year proposal, which
we strongly believe is in the best long-term interest of all U. S. Steel
stakeholders, includes a 14-percent base wage increase over the term of the
agreement, guaranteed profit sharing, and healthcare premiums offset with
this week, and we continue to work diligently to reach a mutually agreeable
conclusion,” the company added. “Our plants continue to operate in a safe
and orderly fashion.”
Details from the
* Six-year term:
Sept. 1, 2018, through Sept. 1, 2024.
* Guaranteed bonus
of $10,000 in cash payments contingent on ratification by Sept. 22,
structured as follows: $4,000 paid within 30 days of Sept. 22; $6,000 in
guaranteed minimum combined Q3 and Q4 2018 profit sharing paid with 30 days
of Sept. 22. Probationary employees hired prior to ratification date will be
eligible to receive the payments on successful completion of their
* Base wage hikes:
4 percent effective Sept. 1, 2018; 2 percent effective Sept. 1, 2019-23.
Also: 80-percent starter rates for new production hires with 5-percent
advancement for each 1,040 hours worked.
payments: Employees who elect the CDHP health insurance plan shall be
eligible to receive lump-sum payment of $1,500 in January of following year;
those who elect the PPO plan shall be eligible to receive a monthly lump-sum
of $125 for each month in the following calendar year.
enhancement: $0.15 per hour worked company contribution (for all employees)
to the 401(k) saving plan, subject to participation rules and three-year
No change to profit-sharing for the 2018 plan year. The profit-sharing
calculation would remain unchanged but beginning Jan. 1, 2019, will be
applied independently to NAFR and Tubular segments.
healthcare: Free CDHP plan (no premiums) for all new hires and option for
current employees who choose to select, with annual Health Insurance Account
contribution of $1,000/$2,000. Modified PPO with modest employee premiums.
Continue to discuss EAP administration and delivery.
healthcare: No change to current plan designs. Modest premium increases to
extend ability to preserve subsidized premiums for a longer period.
death: Company-paid COBRA health continuation for spouse and dependent
children up to age 26.
* VEBA: Use of VEBA
assets exceeding 110 percent of obligations to pay for any legally
permissible employee and retiree benefits expenses.
* No changes in the
following: Vacation, USSCPF Pension, SPT Pension, Retiree Healthcare Account
(post-2016 hires), and contracting out.
Last week USW
locals representing the hourly workforces at U.S. Steel voted overwhelmingly
to grant its bargaining committee strike authorization. The current
three-year contract has been extended since its original Sept. 1 expiration
date in rolling 48-hour periods.