United States Steel Corp. said Friday its United Steelworkers-represented employees have ratified new three-year collective bargaining agreements.
One agreement covers about 16,000 workers at U.S. Steel's domestic flat-rolled and iron ore mining facilities and its tubular operations in Ohio and Alabama. The second agreement covers about 1,000 employees at U.S. Steel's subsidiary welded tubular products facility in Texas. Locally, U.S. Steel has facilities in East Chicago, Gary and Portage.
"U.S. Steel is pleased with the outcome of the ratification vote," said John Surma, U.S. Steel chairman and CEO, in a news release. "We believe that this newly approved and competitive three-year agreement is in the best interests of our company, our employees and all of our stakeholders."
The agreements are retroactive to Sept. 1, contain no-strike provisions and expire Sept. 1, 2015. Employees will receive a lump sum payment of $2,000 by Oct. 15, a 2 percent wage increase Sept. 1, 2013, a lump-sum payment April 1, 2014, of $500, and a 2.5 percent wage increase Jan. 1, 2015.
The agreements also provide for certain benefit adjustments for current and future retirees and modifications to the profit-sharing plan beginning in 2013, the company said.
The company is assuming a $35 million pretax charge on its third quarter financial statement for the $2,000 lump-sum payments to workers covered under the contract.
U.S. Steel and the USW reached the tentative agreement Sept. 2.