Market Segment
USW Releases Highlights of ArcelorMittal Tentative Agreement
Written by Sandy Williams
May 1, 2016
The United Steelworkers revealed highlights on Friday of its tentative contract with ArcelorMittal USA. The settlement followed eight months of negotiations while union members continued to work under the terms of the previous expired contract.
The new contract does not include a pay raise but does maintain the no premium status for health care benefits that the union sought.
The highlights of the new three year agreement are:
– A three year agreement retroactive to September 1, 2015
– A $2.5 billion capital expenditure program
– Combined all the PIBs (Program of Insurance Benefits) into one with no premiums
– Added Vision Coverage for all retirees at no additional cost
– 90/10 heath care plan for active and retired members
– Improved coverage for Legacy Retirees in the VEBA
– Converted the fixed contribution into the VEBA to a variable contribution of 5% of EBIT paid quarterly
– Improved the Inland DB pension with a 10 year certain (was a 5 year certain) and increased the multiplier to $105 for future years of service, both retroactive to January 1, 2016
– Increased SPT pension contribution by $0.05 per hour per year (total of $0.15), retro to 09/01/15
– Introduced a Hot Rolled Bonus program that pays quarterly when hot roll prices go above $600 per ton
– Established a parental leave provision under FMLA
– Established an experimental child care reimbursement program
– Improved hiring preference for relatives of USW employees
– Pre-Medicare retiree monthly contributions increase from $70 to $100
– Medicare eligible retiree monthly contributions increase from $35 to $50
The proposed agreement, if ratified, will extend to September 1, 2018.
Sandy Williams
Read more from Sandy WilliamsLatest in Market Segment
Nucor targets ‘white hot’ data center boom
With infrastructure demand shifting toward digital capacity, Nucor Corp. is positioning itself as the go-to steel supplier for the data center boom.
Gerdau’s N. American earnings rise in Q3 due to fall in imports
Gerdau’s North American profits rose in the third quarter, boosted by a decline in imports due to Section 232 steel tariffs.
Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.