USW sees 'no real movement' with USS on healthcare as Sept deadline nears

Labor contract talks between the United Steelworkers (USW) union and U.S. Steel have made some headway.

But the USW said there has been little progress with the Pittsburgh-based steelmaker on some key issues.

U.S. Steel did not respond to a request for comment on Friday.

The USW said there had been “some progress” on overtime and emergency services issues in an update to members on Friday. The union also said it was “still waiting” on counterproposals from U.S. Steel on safety issues.

The union sees safety as a key point following a deadly explosion at U.S. Steel’s Clairton Coke Works near Pittsburgh last year and following the death of a worker at the company’s Granite City Works near St. Louis last month.

When it comes to healthcare, another sticking point, “after lots of discussion, no real movement,” the USW said.

Labor contracts between U.S. Steel and the USW expire on Sept. 1, as do contracts between Cleveland-Cliffs and the union.

All of U.S. Steel’s integrated mills, mines, and pelletizing operations in the US are represented by the USW. The company’s EAF sheet mill in Arkansas, Big River Steel, is non-union.

What happened last time?

U.S. Steel and the USW were unable to reach an agreement before a Sept. 1 deadline when they last negotiated a labor contract in the summer of 2022. But the two sides agreed to extend a prior contract on Aug. 31, thereby averting a strike or lockout at the last minute. They ultimately reached a tentative agreement in November 2022. And union members ratified it in December.

The USW and Cliffs, in contrast, reached a tentative agreement in August 2022, before the Sept. 1 deadline. Union members ratified it in October.

It’s typically difficult for one steelmaker to hold out if another has already reached an agreement with the USW.

Why these negotiations matters

The issue of contract talks is important because U.S. Steel and Cliffs are two major domestic steel sheet suppliers. Any loss of production could send shockwaves through an already tight market. Their influence is even more significant when it comes to more demanding automotive grades.

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.