USW: contract talks with U.S. Steel “extremely disappointing”

MONTREAL (Scrap Monster): United Steelworkers negotiators say the union and United States Steel Corp. remain far apart in efforts to reach a new labor agreement, with wages, healthcare, successorship protections and capital investment commitments still unresolved.

“Last week we gave USS a comprehensive proposal that addressed our main issues and dealt with the issues the company said were important to them,” United Steelworkers negotiators said Sunday in an update to members.

“We were hopeful this would put us on a path to reaching a fair contract soon. Today, we got their response. It is unfortunately extremely disappointing and really misses the mark.”

Wage Proposal Remains Unchanged

The USW said there has been no movement on wages since U.S. Steel submitted its initial proposal on July 20.

Under that proposal, U.S. Steel offered an 18.2% wage increase over the life of a proposed five-year contract.

The company also offered a $4,000 signing bonus for each USW member upon ratification of a new agreement.

The union acknowledged that some progress has been made in negotiations but said U.S. Steel now needs to move more substantially on the key unresolved issues.

Healthcare and Successorship Remain Major Disputes

The company continues to seek changes that the USW describes as a healthcare cost-shifting arrangement that would move significant costs to union members.

Another major point of contention is U.S. Steel's proposed elimination of successorship language designed to protect contracts, pensions and benefits following the company's 2025 sale to Nippon Steel Corp.

The USW also said U.S. Steel is proposing changes that would use members' vacation time to satisfy state leave requirements in states including Minnesota, Pennsylvania, Illinois and Michigan.

Union Seeks Capital Investment and Profit-Sharing Commitments

The USW said it remains dissatisfied with the level of capital investment commitments being offered for U.S. Steel facilities.

The union also said the company has rejected its proposed profit-sharing language as well as provisions covering labor-management meetings, training and conflict resolution.

“Their attacks range from the substantial (attacking successorship language) to the petty (refusing to print contract books),” the USW said.

Nippon Steel Investment Commitments Remain in Focus

Nippon Steel Corp. acquired U.S. Steel in 2025 in a $14.9 billion transaction.

Nippon Steel has also said it plans to invest $11 billion in U.S. Steel facilities represented by the United Steelworkers.

The USW said its bargaining committee intends to remain firm on the issues that members identified as priorities.

Steelworkers Continue Under Contract Extension

Contract talks between U.S. Steel and the USW resumed in Pittsburgh late last week following a short break.

The previous labor agreements expired September 1, but steelworkers are continuing to work under a 30-day extension agreed to by both sides.

Labor negotiations between the USW and Cleveland-Cliffs Inc. are also continuing under a separate 30-day extension after those agreements also expired September 1.

The extension periods expire October 1.

If agreements are not reached with either U.S. Steel or Cleveland-Cliffs by that date, each party will have 48 hours to notify the other of termination of the extension.

Tens of Thousands of Steelworkers Covered

Tens of thousands of USW-represented steelworkers are employed at U.S. Steel and Cleveland-Cliffs facilities across the United States.

About 4,000 USW-represented steelworkers work at six northeastern Minnesota taconite operations run by Cleveland-Cliffs and U.S. Steel, although Cleveland-Cliffs' Minorca Mine remains indefinitely idled and Hibbing Taconite Co. is operating under a partial idle.

Final Takeaway

The negotiations remain centered on more than wages. Healthcare costs, successorship protections, capital spending, profit sharing and workplace provisions are all still on the table as the October 1 extension deadline approaches.

Courtesy: www.mesabitribune.com