Dear Represented Employees,
Today we submitted an updated proposal to the United Steelworkers (USW) for consideration.
This proposal provides strong wage growth, strong upside opportunity and strong downside protection for our employees. We know that the steel industry can be volatile. That is why our responsible compensation proposal of robust base wage increases, a guaranteed payable-now bonus, uncapped profit sharing, and inflation protection —combined with premium-free healthcare -- is designed to support and reward employees through business cycles.
A summary of key points is below, and we continue to encourage you to reach out to your USW-representative with any questions.
Here’s What’s Improved:
- Our revised proposal includes an increase to the proposed base wage increases: a 4% base wage increase for the first year, 3% increases for years two and three, and a 4% increase in the fourth year. This provides certainty to employees of base wage increases of nearly 15% compounded over the term of the contract.
- We revised our proposal to meet our employees’ need for consistency in healthcare but to also meet our needs to control costs. Instead of the High Performance Network, we are proposing a cap and recover plan that will keep healthcare costs at 2022 levels. If costs rise, we will work with the USW to offset the costs. This is similar to what the USW negotiated with other steel companies.
Here's What’s The Same:
- We’re offering a $4,000 Essential Worker Appreciation Bonus, payable upon ratification. This immediate and guaranteed cash in hand acknowledges the importance of our employees to our business and provides more money sooner.
- You’re still protected from inflation through the Inflation Recognition Payment, which provides quarterly payments if inflation hits certain markers. Employees received, on average, more than $1,200 so far in 2022 under this program.
- We’re providing maximum upside potential to our employees for higher earnings because our profit sharing plan isn’t capped at $11 per hour like Cleveland-Cliffs. For the third quarter, profit sharing is expected to be more than $20 per hour – which puts more cash in your pocket sooner.
Why It Matters:
U. S. Steel is not the company we were five years ago. We are stronger and more competitive – and that is good for everyone. We have been transforming our business model so that we can better withstand the cyclical market.
When we do well, you do well. Pay for performance is a critical foundation to successful business, and I am pleased that in 2021 and so far through 2022, profit sharing has put an average of $66,000 in the hands of our USW-represented employees.
I hope you review the summary I’ve provided, along with our rationale. Discuss any questions with your USW representative. We respect their role in the process.
We know these negotiations are important, but NOTHING is more important than your safety. Please continue to focus on working safely while we continue to work with the union toward a mutually beneficial agreement.
We appreciate you and your commitment to our customers. Thank you to the hardest working team in our industry!
-Dave Burritt, U. S. Steel President and CEO
Click here to view a video message from Dave.
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