US Steel, union reaches agreement in principle



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In the coming weeks, United Steelworkers at US Steel will receive the details of an agreement in principle reached Monday that provides for salary increases until 2021.

The agreement reached culminated with four months of negotiations that have become so bitter that all locals from Northwest Indiana to Gary, East Chicago and Portage have approved a strike authorization.

USW members will vote in the coming weeks on the new framework agreement that covers 14,000 workers in US factories, officials said.

Locally, the framework contract includes workers from East Chicago Tin, Gary Works and Midwest to Portage.

The tentative agreement calls for a 4% increase, followed by 3.5% in 2019 and 2020 and 3% by 2021, said Mark Lash, president of Gary Local 1066. Workers will also receive a signing bonus of $ 4,000, officials said.

Lash, who returned Tuesday from Pittsburgh, said he preferred not to discuss contract details before members' information, but added that the information had been concealed on the media social.

He was satisfied with the result.

"I think they really wanted to lobby and that they had an agenda," he said about US steel negotiators. "They wanted to change our pay system. They did not think we were going to strike. The economic situation was prohibitive for them, they would have lost much more, "he said.

In June, President Donald Trump imposed a 25% tariff on imports of steel and aluminum.

With steel prices and tax cuts in place, analysts expect a rise in US steel operations and profits, which predicts a 60% increase in pre-tax profits.

However, negotiations were difficult for USW members in both the US Steel and ArcelorMittal. Both contracts expired on 1 September. The two steel giants account for about 40% of steel production in the United States.

"They pushed that to the end," said Lash. "I do not remember a negotiation where we were so close to a strike," he said.

Lash said the negotiations had been hard work.

"It seems like it will set the standard for the future," he said. He declined to talk about a possible impact of the pact in principle on negotiations between USW and ArcelorMittal.

USW International President, Leo W. Gerard, welcomed the agreement in a statement.

"WE Steel started this process by emphasizing the deep concessions of a group of workers who had already made major sacrifices to help the company go through a very difficult time," Gerard said. The fact that these workers were able to speak with one voice and demand fair treatment is a testament to the strength of solidarity. "

Discussions began in July and members continued to work after the expiry of the contract in September.

Earlier, US Steel had proposed a 7-year contract, which included increases, but according to the union, health care costs would offset wage increases.

David B. Burritt, President and CEO of US Steel, said that the tentative agreement was fair and in the best long-term interest of employees, as well as customers and shareholders of US Steel.

"Together, we have agreed on conditions that will create certainty and stability for our many stakeholders, which will enable our company to implement our long-term business strategy, which includes ongoing and responsible investments in our people and projects. .

Carole Carlson is an independent reporter for Post-Tribune.

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