Cliffs, US Steel, USW negotiations continue

The United Steelworkers (USW), Pittsburgh, says it has agreed to 30-day negotiation extension periods concerning worker contracts with both United States Steel Corp. and Cleveland Cliffs Inc.

The USW collective bargaining agreement negotiations are the first for U.S. Steel since it was acquired by Japan’s Nippon Steel Corp. (NSC) last year.

The agreements with both steelmakers, which the labor union says cover tens of thousands of USW-represented workers, were set to expire this Tuesday.

Cleveland-based Cliffs and Pittsburgh-based U.S. Steel operate all the remaining blast furnace/basic oxygen furnace steel mills in the U.S. More than two-thirds of American steel now is made using electric arc furnace (EAF) technology, which uses predominantly ferrous scrap as feedstock.

U.S. Steel also has a presence in the EAF sector through its ownership of Big River Steel in Arkansas. The Cleveland-Cliffs website indicates it owns EAF capacity in Butler and Coatesville, Pennsylvania and its Ferrous Processing & Trading subsidiary operates more than two dozen metals recycling facilities.

USW says the negotiations focus on issues including wages, benefits, job security, health and safety, capital investments.

“The USW remains committed to reaching strong agreements that recognize the contributions of union members and protect the future of good, family-supporting steel jobs,” says USW International President Roxanne Brown. “While negotiations continue, workers will remain on the job, producing high-quality products under the terms and conditions of the current agreements.”

When Cliffs reached its previous four-year contract agreement with the USW in 2022, Lourenco Goncalves, board chair, president and CEO of the firm, commented, “Cleveland-Cliffs is a people-oriented company. These labor agreements, covering more than half of our entire workforce, support that statement.”

Added Goncalves, “Our workforce has made these past two years possible, including navigating a monumental transformation and growth, overcoming the challenges of a pandemic and adapting to an ever-changing business climate. Going forward, we will continue to promote our employees’ well-being as the basis of our success, for the benefit of our clients and our long-term shareholders.”

About two months later, after a lengthier 2022 negotiating process, U.S. Steel President and CEO David B. Burritt remarked, “We are pleased to have reached these agreements with our USW-represented employees. The new agreements balance the needs of our employees, customers, stockholders, and other stakeholders.”

Both Goncalves and Burritt remain in charge of their respective companies, although Burritt’s firm now is part of Japan-based NSC.

In a statement this July, U.S. Steel made public portions of what it called a comprehensive proposal for a new five-year labor agreement with the USW.

According to U.S. Steel, that proposal includes: a total wage increase of approximately 18.2 percent over the course of the contract; no changes to specific pension plans; no changes to the way profit sharing is calculated; and that upon ratification, all eligible employees will receive a $4,000 bonus.

USW says negotiations with both firms will continue into September and that it will provide updates to members as they occur.…Read more by Senior Editor, Brian Taylor