Steelworkers Approve Pact With USX, Accept Cut in Pay, Benefits
The United Steelworkers on Saturday overwhelmingly approved a four-year contract with USX Corp., ending the longest work stoppage in the domestic steel industry’s history, union officials said.
Union spokesman Gary Hubbard said rank-and-file members ratified the contract by a vote of 19,621 to 4,045 to end a labor dispute that had idled 22,000 steelworkers in nine states for six months.
Union officials said 83% voted in favor of the new agreement, which reduced pay and benefits but offered improved pension and insurance plans, profit sharing and restrictions on non-union work.
May Return Today
USX Chairman David M. Roderick said the nation’s No. 1 steelmaker might call workers back today. The labor dispute entered its 184th day Saturday.
Steelworkers received copies of the proposed contract and mailed their ballots to union headquarters in Pittsburgh, where they were counted Saturday.
The new four-year contract cut steelworkers’ hourly pay and benefits by $2.45 in the first year, $2.20 in the second and $1.95 in the third and fourth years, the union said.
In return, USX promised to improve insurance plans and pensions, institute profit sharing and restrict “contracting out” plant work to non-union employees.
The company also agreed to shut down a number of idle facilities, which would provide benefits totaling an estimated $37 million. USX also said it would recall one furloughed employee for each two who take special pensions and would provide $2.4 million for retraining.
The work stoppage has been called a strike by the company and a lockout by the union. It began Aug. 1 when the workers’ contract expired without agreement on a new pact.
The union offered to continue to work under terms of the old contract, but USX refused and shut down plants in Pennsylvania, Ohio, Texas, Minnesota, Utah, Illinois, Alabama, Michigan and Indiana.
Negotiators for both sides reached agreement on contract terms Jan. 17. The proposed contract then was approved by union officers, who recommended its acceptance by the rank and file.
