United Steelworkers, ArcelorMittal Reach Labor Pact -- Update

By Patrick Thomas 

The United Steelworkers union and ArcelorMittal SA reached a tentative deal on a new labor contract covering about 15,000 workers after several months of negotiations.

The four-year agreement for workers includes wage increases between 3% and 4% each year and a $4,000 ratification bonus. The deal with ArcelorMittal, the world's largest steelmaker, comes less than a month after the union reached a similar agreement with workers from U.S. Steel Corp.

"The proposed four-year 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 steelworkers union said in prepared remarks.

With a tentative deal in place, union members will now review the proposal and vote on it.

Last week ArcelorMittal issued a statement outlining its latest proposal to the union, which included no changes to profit-sharing, no health-care premiums for active employees and no premium increases for retirees.

The Luxembourg-based ArcelorMittal and U.S. Steel account for 40% of U.S. production capacity of flat-rolled steel, which has a range of uses including in automotive and construction sector.

Workers at the two largest U.S. steelmakers have been demanding higher compensation as tariffs on foreign metal push prices and profits to their highest point in years. Leaders of the nearly 30,000 member union say the company's aren't passing those benefits down to their workers.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

November 02, 2018 17:56 ET (21:56 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.