Steel Mills
Tensions Rise Between USS and USW, Still No Deal
Written by David Schollaert
September 23, 2022
The United Steelworkers union and US Steel traded blows as bargaining talks on a new labor deal continued well past the Sept. 1 expiration of a prior agreement.
The USW said in an update to its members on Sept. 22 that the Pittsburgh-based steelmaker had failed to invest in its union-represented facilities as promised. The union also alleged that the company’s current proposal on investments was ultimately a “dis-investment” because it lacked “what is needed to keep our plants safe and competitive.”
US Steel hit back, saying that investment in USW-represented facilities remained a priority. The company underscored the $5.3 billion it has invested in its USW plants since 2018.
The USW and US Steel agreed on Aug. 31 to extend the terms of their prior contract and to continue negotiating toward new deal. But the two sides have made little progress since bargaining began in mid-July.
A lockout or strike would begin in the event the extension is terminated. Either party can terminate talks provided they give a 48-hour notice.
At the crux of USW criticisms: that US Steel “broke promises” at its Mon Valley Works in western Pennsylvania. The union highlighted the cancelation of a planned $1.2 billion investment in a state-of-the art casting and rolling facility at its Edgar Thomson Plant, a union mill in Braddock, Pa. The USW said that capital had been redirected to US Steel’s Big River Steel Works, a non-union EAF sheet mill in Osceola, Ark.
The USW proposed that US Steel invest $4 billion at its union-represented facilities over the next four years to “keep faith with its workforce.” The union said US Steel should construct a new EAF mill and DRI plant at Mon Valley Works. It also said the company should rebuild the A blast furnace at its Granite City works near St. Louis rather than selling it to SunCoke.
“We’re already prioritizing investing in our facilities,” US Steel said in a statement. “The $1 billion investment in the current proposed agreement is just a continuation of the work we’ve been doing for years.”
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Nucor breaks ground on new Berkeley galv line
Nucor broke ground on a new galvanizing line at its Nucor Steel Berkeley sheet mill in Huger, S.C., on Thursday, May 2.
USS, Nippon merger delayed by DOJ antitrust review
The sale of U.S. Steel Corp. to Nippon Steel Corp. has been delayed by the US Department of Justice’s antitrust investigation. The Justice Department, which is conducting an antitrust review of the merger, has requested additional information from both USS and NSC. The companies originally anticipated closing the sale in the second or third quarter […]
U.S. Steel Q1 earnings slip, BRS expansions proceed
U.S. Steel posted slightly lower Q1’24 earnings as stronger earnings from its sheet mills were partially offset by a weaker performance from it tubular division. All told, the Pittsburgh-based steelmaker reported Q1’24 earnings of $171 million. That's down 14.1% from $199 million in Q1’23 on sales that fell 6.9% to $4.16 billion in the same comparison.
ArcelorMittal says Calvert CR outage over, floats buying Nippon’s stake in JV
ArcelorMittal posted a narrower Q1’24 profit compared to Q1’23 but remained optimistic about steel's long-term demand prospects.
SMU Community Chat: Hybar’s ambitious plans as newest player in rebar
Hybar has big plans for entering the American steel market. Although it is the newest player in the US rebar market, the startup is led by an experienced, nimble, and ambitious team, and backed by investors with deep pockets. Industry titan and Hybar CEO David Stickler joined SMU Managing Editor Michael Cowden on Wednesday’s Community Chat to update the SMU community on the company’s first mill, and its grand plans for the future.