20 September, 2008New four-year contract provides wage and pension increases and improved health care benefits for 16,000 members of the United Steelworkers.
USA: A new four-year labor agreement between the United Steelworkers (USW) and U.S. Steel covering some 16,000 union members at 14 U.S. plants was ratified by the membership in a mail-in secret ballot vote of 10,571 to 2,670. The contract is retroactive to September 1.
Contract gains include:
- Wages: Workers will receive a $6,000 cash payment and a $1 an hour increase. Four percent wage increases will come in years two, three and four.
- Profit sharing: Beginning in 2009, if profit sharing payments for any quarter are more than $10 per hour due to the company's European operations, the excess money will be banked and if profit sharing exceeds $20,000 a year per member, the excess will be contributed to the trust account designed to help offset the union's future health care costs.
- Pensions: The minimum pension formula multipliers will be increased for current U.S. Steel Employees who are covered under the U.S. Steel Carnegie Pension Fund. For U.S. Steel Employees covered by the Steelworkers Pension Trust (SPT), the contribution rate will be increased from $1.80 to $2.65 per hour, resulting in a $100 monthly pension multiplier.
- Health Care: The Agreement improves the existing medical, prescription drug, dental, vision, life insurance and Sick and Accident (S&A) benefits for all eligible employees. Prescription drug co-pays are unchanged.
In addition to economic gains, the agreement requires the company to make significant capital investment in its domestic plants and provides for an "Energy Efficiency and Carbon Emissions Task Force" where the union and company will work together to protect and benefit the industry and the environment.