PITTSBURGH, Sept. 10 /PRNewswire-FirstCall/ -- United States Steel
Corporation (NYSE: X) and its U. S. Steel Tubular Products, Inc. subsidiary
today announced that its United Steelworkers-represented employees have
ratified new four-year collective bargaining agreements. One agreement covers
approximately 16,000 employees at U. S. Steel's domestic flat-rolled and iron
ore mining facilities as well as tubular operations in Lorain, Ohio, and
Fairfield, Ala. The second agreement covers approximately 900 employees at
U. S. Steel Tubular Products, Inc.'s Texas Operations Division, a welded
tubular products facility in Lone Star, Texas.
Commenting on the announcement, U. S. Steel Chairman and Chief Executive
Officer John P. Surma said, "U. S. Steel is pleased with the outcome of the
ratification vote. The newly approved four-year contracts are in the best
interests of our company and our many stakeholders."
The agreements, which are effective Sept. 1, contain no-strike provisions
and expire on Sept. 1, 2012. Employees at locations other than Texas
Operations Division will receive a signing bonus of $6,000, a wage increase of
$1 per hour effective Sept. 1, and a 4 percent wage increase each Sept. 1
thereafter through 2011. Texas Operations Division employees will receive a
signing bonus of $5,000, initial wage increases ranging from $0.65 to $0.91
per hour and subsequent 4 percent increases as described above.
The agreements provide for pension and other benefit enhancements for both
current employees and retirees, and the profit sharing plan from the 2003
agreement has been continued and will include all tubular operations in the
future. At certain high levels of income from operations, some profit-sharing
amounts will be contributed to our trust for retiree health care and life
insurance. In addition to other mandatory contributions to this trust, U. S.
Steel will contribute $75 million annually during the four-year term to a
restricted account within the trust. Use of these funds for beneficiaries of
the trust will be determined in the future collective bargaining of a
successor labor agreement.
Financial impacts of the new agreements will be reflected beginning in the
third quarter 2008 financial statements, including a pre-tax charge of
approximately $100 million for the signing bonus payments.
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For more information about U. S. Steel, visit www.ussteel.com.
SOURCE United States Steel Corporation