Steelworkers union says U.S. Steel using downturn to 'gut' contract

[Omaha Steve]

Source: Trib Live

By Alex Nixon

The United Steelworkers union accused U.S. Steel on Friday of using an industry downturn to demand a range of concessions, including cuts to health care benefits for workers and retirees.

The union and company are in talks on a labor pact to replace a three-year contract that will expire Sept. 1 at a time when the domestic steel industry is being battered by low prices, cheap imports and weak demand from oil and gas customers.

“It's clear from this initial outline that U.S. Steel is attempting to use the current industry downturn to gut our contract and weaken our union,” the union said in a statement on its website. “These proposals do nothing to address the current climate in the steel industry — they are designed instead to take advantage of that climate to weaken our contract,” the statement said.

U.S. Steel wants its 17,000 union-represented workers to contribute to premium costs for their health care benefits, add annual deductibles starting at $2,600 and eliminate policies for Medicare-eligible retirees, according to the union's statement. The company is asking for concessions related to vacation time, overtime, severance and other items.

FULL story at link.

Read more: http://triblive.com/business/headlines/8801531-74/steel-union-contract#axzz3gogQIo97

[IthinkThereforeIAM]

1. It's really too bad that Congress can't get a clean Highway Bill...

... to pass, for how many years, now? Lots of bridges out there need repairs, and all of the new and retrofitted bridges use... you guessed it, STEEL!

Just another angle in their nefarious attempts to destroy middle America.

[cstanleytech]

2. Agreed its what they are doing but I wonder if the workers might be better off to try to negotiate

no to cuts on retirement benefits but yes to atleast some of the rest of what the company wants in exchange for a large share of voting stock? That way the union gets some leverage for the future when the price of steel goes back up and the company can get some of what it wants?

[Fuddnik]

5. Sure, when LTV Steal came out of bankruptcy the first time, everyone got stock.

Then they tried preventing steelworker shareholders from attending shareholder meetings.

When management finished cleaning out the company before going bankrupt again, I bought those stock certificates for about 12-15 cents a share. I wallpapered my entire bathroom for about $30.

[cstanleytech]

6. Ah :( That sucks.

[pediatricmedic]

3. Not an isolated case, most companies are shifting the cost of medical benefits

This is one of the toxic side effects of Obamacare that we are seeing. Most insurance companies are offering private plans to companies that mirror what is available on the public exchanges. This is costing the employees a lot more money and coverage is much less then the old plans. Add in other cost of living increases along with very anemic wage growth and most workers are feeling very bad.

From what I understand of the metals industry, imports are killing the local producers. Even with all the concessions, they will not return to any noticeable profitability in the future. Free trade wins again.

[spqr78]

4. pretty simple really.

Whatever health care the CEO uses (even if they buy it themselves) the workers get.

The union pension plan gets stock and bonuses equal to whatever is given to executives.

All worker pay is linked to executive pay as a fixed percentage.

If management fails to maintain the deal in good faith, they get flayed alive and their skins hung at whatever schools their children go to. That should fix things in one generation, two at most.

[INdemo]

7. Obama promised us back in 2008 that he would add stiffer tariffs to imported

Steel and protect out Nations Steel Industry. He also promised to find a comfortable pair of walking shoes and stand with union workers on picket lines if he thought they were being treated unfairly. Remember?

Its the cheap Chinese steel that is hurting our industry. It is so bad that it is very difficult to weld because of the low carbon and other inferior properties.