Deadline Approaches on Steelworkers Contract

As union negotiations continue in Pittsburgh this week, members of United Steelworkers are staging rallies at sites run by U.S. Steel Corp. and ArcelorMittal USA to demonstrate to the companies "we're strong, we're united, and we're prepared to do whatever it takes to win a fair contract," the union's web site says.

The companies and union have a Sept. 1 deadline to reach a three-year labor deal—the first contract in a generation that has been negotiated during a down market.

During the past two negotiating sessions—in 2008 and 2012—the steel industry was strong. Today, steel prices in the U.S. have fallen by more than 20% since Jan. 1 because of inexpensive imports, a sluggish economy and the collapse of oil prices that has hurt demand for steel pipes and tubes used in oil and gas drilling, the Wall Street Journal reported. U.S. Steel and ArcelorMittal USA have closed plants and laid off workers.

The Journal reported that at the heart of the negotiations is health care. The current health plan at both steelmakers doesn’t require workers to pay any premiums. The companies want to raise premiums for U.S. workers and retirees.

ArcelorMittal has proposed freezing pay, cutting total compensation for some workers and requiring monthly health-care premiums of $150 for individuals and $250 for families.

U.S. Steel has a similar proposal.  S