Vol. 80/No. 9 March 7, 2016
U.S. Steel contract freezes wages, ups health costs
Claiming losses of $1.5 billion in 2015, U.S. Steel, the largest steel producer in the United States, put thousands out of work, closing mills in Granite City, Illinois, and Fairfield, Alabama, and cutting jobs elsewhere. The worldwide contraction of capitalist trade and production, including falling oil prices and a slowdown in China, have contributed to a sharp decline in demand for steel.
USW officials have hitched their wagon to steel company owners, campaigning together against what they call “illegally low-priced” imports from China and elsewhere, demanding tariffs and other restrictions on imported steel.
U.S. Steel bosses used the layoffs and threats of more job cuts to pressure workers to take concessions. Company demands initially included a two-tier structure for new hires and increased health care costs.
Steelworkers at steel producer ArcelorMittal and iron ore miners at Cliffs Natural Resources face similar concession demands and continue to work day to day under expired contracts.
The USW contract with U.S. Steel expired Sept. 1. Union officials organized several large protest rallies in Pittsburgh; Gary and Burns Harbor, Indiana; and on the Minnesota Iron Range. Thousands of Steelworkers and their supporters showed their determination to fight the companies’ attacks at these and other actions. But no large protests have been organized recently.
Locked out for six months, Steelworkers at Allegheny Technologies Inc. maintain picket lines and continue to reject company demands for two-tier wages and benefits, mandatory 12-hour shifts, and steep cuts in medical benefits. There are some 2,200 ATI workers at 12 plants in six states.
Talking with workers at the Gary Works plant gate here Feb. 15, some agreed with USW officials’ Feb. 3 statement that the contract “was by far the best agreement we could hope for in this environment.” Others explained why they voted against it.
“No raise for three years? This contract didn’t do anything for us,” said Michael Ames, a steel pourer. “They say we’ll get profit sharing, but that depends on what they report.”
The economic crisis means there are many more retired workers than active ones, and companies seek to cut costs at the expense of retired workers’ benefits.
“You can’t do that to people who worked for 30 years and broke their backs for these companies,” Ames said. “All this wasn’t built yesterday.”
Related articles:
Teamster airline mechanics say no to United's concession demands
On the Picket Line
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