Steel Workers’ Strike Against USX Is Expected

Barring an unforeseen breakthrough, the United Steel Workers of America is expected to go on strike against USX Corp., the nation’s biggest steel company, when its labor contract expires Thursday, industry experts say.

Union and USX officials declined to comment on bargaining talks because of a news blackout. But industry sources said the two sides are far apart and preparing for a strike.

The 18,000 union members have authorized a strike if the contract expiration at midnight passes without a new agreement.

“They still look very far apart,” said Christopher Plummer, a steel consultant at WEFA Group. “There’s a very wide gap, and it could be a protracted strike.”

USX had a six-month work stoppage four years ago, and it could risk losing customer goodwill in another stoppage, especially if the strike were to last more than two months. Analysts said they have detected a shift in orders by customers concerned about interruptions.

The company’s U.S. Steel unit--the nation’s largest steel company--has stockpiled enough inventory to last through March in case of a work stoppage, analysts said.

“I think USS is going to strike,” said Charles Bradford, an analyst at UBS Securities.

USX has offered the union a 90-day contract extension, which was rejected, local union presidents said. That could prevent union members from collecting unemployment in case of a work stoppage, as they would if they were locked out.

“If we don’t have a contract in hand on Feb. 1, then we would give no extension. If we were to have a contract in hand, then we would extend for voting purposes,” said Richard Jones, president of USW Local 1013 at USX’s Fairfield, Ala., plant.

Bradford called the offer by USX “sort of a hardball move.”