Market Segment
SunCoke Joins US Steel in USW Contract Negotiations
Written by Laura Miller
July 11, 2022
As it prepares to take over the two blast furnaces at US Steel’s Granite City Works in Illinois, SunCoke Energy is joining the contract negotiations in Pittsburgh that started this week between US Steel and the United Steelworkers union.
It was announced last month that SunCoke and US Steel have signed a non-binding letter of intent for SunCoke to take over the two Granite City blast furnaces and convert them to pig iron production. At that time, it was estimated that only 550 employees would still be working once the shift to pig iron production happens in 2024.
In a July 10 bargaining update, the USW explained that “We have successorship language in our labor agreement with USS that requires SunCoke Energy to bargain the terms of a labor agreement with the USW or accept the current labor agreement.” SunCoke has requested to bargain the terms of an agreement, the union said.
“I have also requested to bargain the effects of the possible sale with USS, which we will try do in Pittsburgh,” Mike Millsap, USW bargaining chair for the talks with US Steel, noted in the update.
The USW’s current labor pact with US Steel is currently set to expire on Sept. 1 and covers all of US Steel’s US locations except for the Big River Steel Works in Arkansas.
SunCoke Energy told SMU that it can not specify the number of employees required for the new operations as it is still assessing the project and capital requirements. No clear timeline has been set on finalizing the deal with US Steel. But once a deal is reached, it should take approximately two years for the project to become operational.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
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