Union reaches tentative deal on new contract with ArcelorMittal
About 15,000 workers will get 14 percent pay increases over 4 years
The United Steelworkers announced on Friday it reached a tentative agreement for a new four-year labor contract covering about 15,000 workers at ArcelorMittal, the world’s largest steel producer.
A deal was reached after several weeks of acrimonious bargaining that included a USW membership vote in September giving union leadership permission to call a strike at the European steelmaker’s facilities in the U.S.
The agreement, which must be ratified by members to take effect, for now ends several weeks of tense negotiations.
ArcelorMittal’s proposed agreement “mirrors the industry standard on wages, lump-sum payments and pensions and maintains or improves our existing health insurance benefits for active and retired steelworkers and their dependents,” the union wrote in a statement to its members.
ArcelorMittal has 33 facilities in 13 states, including operations in Monessen as well as in Weirton, W.Va., and Warren, Ohio.
Domestic steel producers have been more competitive this year, helped by several rounds of tariffs imposed by the Trump administration on steel and aluminum imports. Prices for domestic steel have more than doubled since 2015.
The union, which did not disclose any details of the agreement, is preparing to mail ballots and a printed summary to members. Bargaining committee members are heading back to their local chapters to schedule meetings and prepare for ratification votes.
The deal with ArcelorMittal comes 18 days after the union announced a tentative agreement with U.S. Steel, which workers for the Pittsburgh steelmaker will be considering over the next two weeks.
U.S. Steel’s proposed contract deal includes 14 percent wage increases over four years, a $4,000 signing bonus and no major concessions for the union, according to a union summary of the deal.
Last week, John Brett, president and CEO of ArcelorMittal USA, wrote in a statement that his company’s latest proposal included identical wage increases to the U.S. Steel deal: 4 percent, 3.5 percent, 3.5 percent and 3 percent each year.
ArcelorMittal’s offer also included the $4,000 ratification bonus and proposed no changes to profitsharing and no increases in health care premiums, deductibles or outof-pocket expenses for active members or retirees.
“We believe our offer is consistent with the pattern established by other industry participants and the USW,” Mr. Brett wrote.
As of an Oct. 26 USW bargaining update, the union remained “at odds with the company over a number of outstanding issues.”