USW Submits Healthcare Counterproposal to U.S. Steel as Contract Talks Continue

MONTREAL (Scrap Monster): The United Steelworkers has submitted a healthcare counterproposal to U.S. Steel as the two sides continue negotiations over a new labor agreement covering thousands of workers across the steelmaker's U.S. operations.

Healthcare has emerged as one of the central unresolved issues in the talks. The union says U.S. Steel's proposal would increase workers' out-of-pocket healthcare costs, while the company says changes are intended to address rising medical and prescription-drug expenses.

Healthcare Remains Major Issue in U.S. Steel Contract Talks

The USW said it made clear during negotiations that the company's existing healthcare proposal was unacceptable and responded with its own counterproposal.

“We met with the company Monday and made it clear their healthcare scheme is a non-starter,” the union said in an update to members. “Based on that, we had further discussions with the company. We still have a lot of work to do.”

The union has previously said U.S. Steel's proposed healthcare changes would shift significant costs to employees and their families through changes to coverage and out-of-pocket expenses.

USW negotiators have said they are seeking to preserve healthcare benefits secured through previous rounds of collective bargaining.

U.S. Steel Says Changes Would Help Manage Rising Costs

U.S. Steel has said its healthcare proposals are intended to promote what it describes as high-value care while helping employees make more informed healthcare decisions.

The company also wants to address rising prescription-drug costs, including spending on specialty medications.

One proposal calls for establishing a joint benefits committee involving both U.S. Steel and the union to examine healthcare costs and potential ways to control future increases.

U.S. Steel Offers 18.2% Wage Increase and $4,000 Bonus

The healthcare discussions are taking place alongside negotiations over wages, benefits, working conditions and other provisions of a new collective bargaining agreement.

U.S. Steel's proposal calls for a five-year agreement providing an approximately 18.2% cumulative wage increase, with wage increases in each year of the contract.

The company has also proposed a $4,000 signing bonus for eligible USW members upon ratification.

U.S. Steel has said its proposal would make no changes to vacation eligibility or the existing holiday schedule.

Workers Continue Under Contract Extension

The previous collective bargaining agreement expired September 1.

U.S. Steel and the USW agreed to a 30-day extension that allows employees to remain on the job under the existing contract terms while negotiations continue.

The bargaining covers U.S. Steel operations across the country, including major Northwest Indiana facilities such as Gary Works and the Midwest Plant in Portage.

Several Other Issues Remain Unresolved

Healthcare is not the only outstanding issue.

In its September 18 bargaining update, the USW said discussions were continuing over capital investment at U.S. Steel facilities, maintenance-training programs, the use of artificial intelligence in the workplace and profit-sharing transparency.

The union also said progress had been made on several safety-related issues, including workplace siting, high-voltage training and emergency-response equipment.

At that stage, however, the USW said no tentative agreements had yet been reached on several of the major outstanding subjects.

Why Healthcare Could Determine the Final Agreement

The dispute over healthcare is important because changes in deductibles, co-pays, premiums or coverage can affect the overall value of a compensation package even when base wages increase.

The USW has therefore argued that U.S. Steel's wage proposal cannot be evaluated separately from proposed changes to employee healthcare costs.

U.S. Steel, meanwhile, maintains that its proposals are designed to contain rising healthcare expenses while creating a framework in which the company and union can work jointly on benefit costs.

Market and Industry Read

The negotiations are being closely watched across the U.S. steel industry because U.S. Steel's labor agreement covers major flat-rolled, mining and other operations serving automotive, construction, energy and manufacturing markets.

For now, both sides remain at the bargaining table. Healthcare has become one of the clearest areas where the union and company still need to narrow their differences before reaching a successor agreement.

Courtesy: www.nwitimes.com