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US Steel submits revised contract proposal to the USW

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U.S. Steel Corporation has submitted a revised contract proposal to the United Steelworkers which the company says “reflects the ongoing dialogue during our most recent round of negotiations.”

According to a statement released just before deadline today, the “six-year proposal, which we strongly believe is in the best long-term interest of all U. S. Steel stakeholders, includes a 14-percent base wage increase over the term of the agreement, guaranteed profit sharing, and healthcare premiums offset with transition payments.”

“Talks continue this week, and we continue to work diligently to reach a mutually agreeable conclusion,” the company added. “Our plants continue to operate in a safe and orderly fashion.”

Details from the proposed contract:

* Six-year term: Sept. 1, 2018, through Sept. 1, 2024.

* Guaranteed bonus of $10,000 in cash payments contingent on ratification by Sept. 22, structured as follows: $4,000 paid within 30 days of Sept. 22; $6,000 in guaranteed minimum combined Q3 and Q4 2018 profit sharing paid with 30 days of Sept. 22. Probationary employees hired prior to ratification date will be eligible to receive the payments on successful completion of their probationary period.

* Base wage hikes: 4 percent effective Sept. 1, 2018; 2 percent effective Sept. 1, 2019-23. Also: 80-percent starter rates for new production hires with 5-percent advancement for each 1,040 hours worked.

* Transition payments: Employees who elect the CDHP health insurance plan shall be eligible to receive lump-sum payment of $1,500 in January of following year; those who elect the PPO plan shall be eligible to receive a monthly lump-sum of $125 for each month in the following calendar year.

* Retirement enhancement: $0.15 per hour worked company contribution (for all employees) to the 401(k) saving plan, subject to participation rules and three-year cliff vesting.

* Profit-sharing: No change to profit-sharing for the 2018 plan year. The profit-sharing calculation would remain unchanged but beginning Jan. 1, 2019, will be applied independently to NAFR and Tubular segments.

* Active healthcare: Free CDHP plan (no premiums) for all new hires and option for current employees who choose to select, with annual Health Insurance Account contribution of $1,000/$2,000. Modified PPO with modest employee premiums. Continue to discuss EAP administration and delivery.

* Retiree healthcare: No change to current plan designs. Modest premium increases to extend ability to preserve subsidized premiums for a longer period.

* Occupational death: Company-paid COBRA health continuation for spouse and dependent children up to age 26.

* VEBA: Use of VEBA assets exceeding 110 percent of obligations to pay for any legally permissible employee and retiree benefits expenses.

* No changes in the following: Vacation, USSCPF Pension, SPT Pension, Retiree Healthcare Account (post-2016 hires), and contracting out.

Last week USW locals representing the hourly workforces at U.S. Steel voted overwhelmingly to grant its bargaining committee strike authorization. The current three-year contract has been extended since its original Sept. 1 expiration date in rolling 48-hour periods.

 

Posted 9/12/2018

 
 
 
 

 

 

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