Steel Mills

USW: 'We Have Right to Share Prosperity'
Written by Sandy Williams
August 14, 2018
United Steelworkers labor negotiations with ArcelorMittal are yielding little progress, said an update from the USW to members on Friday.
“From local issues to major economics, ArcelorMittal has resisted engaging in meaningful dialogue,” said the communication.
USW officials complained that the delays could be a “tactic to undermine the bargaining process” as the Sept. 1 deadline nears. “Nonetheless, we remain committed to negotiating a fair agreement in a timely manner,” said the USW.
In a statement released by ArcelorMittal USA today, the company said improved results in the second quarter resulted in a payout of $3.59 per hour to the USW-represented workforce.
U.S. Steel Focuses on Holding Down Labor Costs
Negotiations at U.S. Steel have progressed on some local issues and main agreement pieces, said USW’s update to members on Aug. 8, but so far the company is focused on keeping wages flat. Instead of raising wages, U.S. Steel proposes offering a variable lump sum payment based on the company’s financial performance.
“We went through a three-year contract without a wage increase,” said the USW bargaining committee in its update. “We believe that approach made sense back then, but these are now very different times, and that approach doesn’t make sense today. The frustration with their proposed idea is further increased by the behavior of the management who revised their compensation programs and gave themselves significant bonuses during the past three years, while the company continued to lose money and after we froze our wages. For many reasons, both the industry and the company are projected to do well financially over the coming months and years, and we have every right to expect to share in that prosperity.”
A misinformation campaign is under way by U.S. Steel to convince hourly workers that flat wage costs are “essential to the company,” said union negotiators. Leadership is making “robo calls” and holding town meetings, said the USW, to convince workers to “align” with the company’s strategic goals.
“While the union has been sensitive to the industry and USS in particular, we don’t accept this approach as valid or fair, and we are reminded of their behavior during the past few years. This is another empty promise with a sales pitch attached to it. While the top management may like the idea of big annual bonus payments, our lives and finances aren’t structured the same way,” added the USW. “We have monthly and daily expenses and deserve wage increases commensurate with the productivity increases we have helped to bring about at USS.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Cliffs talks DOE funding, blast furnace relining schedule
The future of two projects supported in part by funding through the Department of Energy remains uncertain.

Cleveland-Cliffs open to asset sales
Meanwhile, its Canadian operations have been hurt by the broader tariffs proposed by the United States.

As Q1 loss balloons, Cliffs pledges to cut costs, streamline operations
Cleveland-Cliffs Inc. gushed red ink in the first quarter, and pledged to stem the bleeding by idling inefficient, “loss-making operations” and increasing focus on its core automotive business.

Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.

CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.