The United Steelworkers union says it has been making progress in talks with U.S. Steel Corp., but the company is still insisting on huge concessions.
USW said in an update to its members that the Pittsburgh-based steelmaker wants two-tier health care coverage where newer workers get weaker plans, to be able to contract out day-to-day maintenance to outside contractors without notifying the union, and to charge union workers up to $6,300 more a year for their health insurance.
U.S. Steel has declined to comment on ongoing negotiations.
In a significant bargaining move, U.S. Steel is no longer asking to scrap its retiree plan for Medicare-eligible retirees, according to the USW update.
But the company still wants to switch profit-sharing payments from quarterly to annually and to strip employees with less than three years on the job of sickness and accident insurance that they currently get after 60 days.
The union said it's asked for more health and safety protections and investments in the mills.
"Our committee has proposed that U.S. Steel commit to making significant capital investments in equipment and upgrades (not just routine maintenance) in our mills," the USW said in its update to members. "We believe negotiating for investment in our mills is an important and effective way to maintain good, family-sustaining jobs and keep our facilities competitive in the growing market."
The company's USW-represented steelworkers at Gary Works, East Chicago Tin and the Midwest Plant in Portage have continued to work under the three-year contract that expired on Sept. 1. Both sides agreed to remain at the bargaining table even after the deadline passed.
"While we have made some progress on significant issues, the company continues to insist on a number of unrealistic and unacceptable demands for concessions," the USW said in an update to its members. "U.S. Steel has proposed dramatic benefit cuts and employee health care premiums for active employees and a two-tier high-deductible health plan for new hires."
Steelworkers would face deductibles, higher co-payments, coinsurance and a $150 premium per month for spousal coverage if a spouse could get coverage from their employer instead. A steelworker would have to pay $3,300 in premiums a year for family coverage by 2018, and face up to $6,300 in out-of-pocket charges if they have family members with serious health conditions.
In the move toward a two-tier system, employees hired after Jan. 1 would be pushed onto a high-deductible plan similar to the one that salaried employees get. They would pay slightly lower monthly premiums but potentially face huge out-of-pocket costs. The union sees it as a divide-and-conquer move.
"Under the company's proposal, by 2018 a new hire with a family would pay premiums of almost $3,000 per year and potentially face up to an additional $6,000 per year in out-of-pocket costs," the USW said its update. "The proposal is designed to create a two-tier compensation scheme that will make it harder to bargain benefits, create resentment and undermine our solidarity. Since these employees haven't even begun work, there are no labor cost savings – but the seeds of division are sown."
The company also wants Medicare-eligible retirees and surviving spouses to pay higher premiums and drug co-pays, though it no longer proposes eliminating their company insurance entirely, the USW said.
The USW said it made a new offer Friday to ArcelorMittal, and expects talks with that steelmaker to continue over the weekend.