USW: ArcelorMittal 'hell-bent' on making workers pay

"What we did not anticipate was that ArcelorMittal would be so 'hell-bent' on ignoring the real issues and would be so focused on insisting that the employees and the retirees pay for the 'ills' of the industry," the union said in a recent update to members. "It is clear that management's past and current attitude has been 'their way or the highway,' but neither 'their way' nor the 'highway' is the right solution."

ArcelorMittal lost nearly $8 billion last year, due largely to write-downs of its overseas mining operations. The steelmaker has said it needs to cut costs, such as by closing finishing lines in the United States. 

An impromptu meeting took place between ArcelorMittal CEO Lakschmi Mittal and some USW members last month at ArcelorMittal USA's headquarters in the Loop, where workers were protesting. They discussed how challenging market conditions are for the steel industry, and how steelworkers hope to preserve their benefits. The meeting apparently led to no immediate results.

ArcelorMittal does not comment on the specifics of negotiations, which have continued under the old contract since it expired on Sept. 1.

The USW says it has made proposals that would improve the company's bottom line and has agreed in principle to the idling of finishing lines, such as the recently closed No. 1 Aluminizing Line in East Chicago, to reduce overhead and overcapacity. The union questions whether the Luxembourg-based steelmaker's finances are as bad as it says. 

"We knew the company had lost hundreds of millions of dollars since our last negotiations, and although we were concerned about the financial results, we also had issues with some of the financial reporting," the union said in its update to members. "Some of the financial reporting has to do with non-cash liability issues, and they report some financial charges which we feel are unjustified, such as tens of millions of dollars per year for branding fees to ArcelorMittal in London, the parent company."

The USW says ArcelorMittal wants to decrease health care benefits, increase retiree premiums, lower incentive coverage, weaken severance, and eliminate incentives for employees in Labor Grade 1 jobs, which the union calls "ridiculous proposals that do nothing to return the company to consistent success." The company has backed off proposals for two-tier wages and health care, and reductions in vacation pay, sickness and accident benefits. 

Under ArcelorMittal's proposals, steelworkers and retirees would pay more for health insurance but get fewer benefits, according to the union. Retiree premiums would more than double.

"Management has moved off of some of the meaningless proposals and adjusted some of their more erroneous demands, but as of today, ArcelorMittal is still insisting on demands that will only lower our standard of living and will not be helpful to the long-term stability of the company," the union stated in its update to members.