Transaction Benefits for Represented Employees
Your pension is safe (and is currently overfunded)
Uncapped profit sharing remains uninterrupted
Premium-free healthcare continues
No changes to USW collective bargaining agreements, as well as average pay and benefit package for USW-represented employees which currently stands at $133,000 per year
NSC AND U. S. STEEL SHARE:
Nippon Steel Transaction with U. S. Steel Secures Long-Term Future of Union Jobs
Nippon Steel Corporation (NSC) is committed to partnering with the United Steelworkers (USW): Will honor all USW agreements and recognize the USW as the bargaining representative for USW-represented employees at closing
KEY THINGS TO KNOW
No changes to existing collective bargaining agreements
Represented members will continue receiving their paychecks, profit sharing and benefits from U. S. Steel
The U. S. Steel brand, operating and customer base, and headquarters in Pittsburgh, Pennsylvania, all to continue
No change to profit sharing or existing benefits
Expands NSC’s existing strong relationship with the USW, as they already have approximately 620 USW-represented employees in the United States
What does this mean for represented employees?
- This announcement will not impact day-to-day operations and all CBAs remain in effect.
- This transaction will not change existing collective bargaining agreements, and union members will continue receiving their paychecks, profit sharing and benefits as normal.
- U. S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, reinforcing its commitment to customers, local communities, and employees.
- Premium-free healthcare
Does NSC recognize the USW and assume the existing BLA?
- NSC is committed to honoring the Basic Labor Agreement (BLA) between U. S. Steel and the USW and recognizes the USW as the bargaining representative for represented employees.
- NSC has the financial wherewithal and desire to honor all existing agreements with the USW.
Does the USW have the right to veto the transaction with NSC?
- Neither the USW nor their previously announced assignee, Cleveland-Cliffs, has the right to veto a bid accepted by the Board because NSC complied with the BLA requirements by agreeing to assume all existing collective bargaining agreements and to recognize the USW as the bargaining representative for USW-represented employees.
Does the USW have topping rights?
- There are no topping rights included in any of the BLAs, meaning the USW does not have the right to “top” a bid accepted by the Board under the BLA.
What is the 45-day window and when did it start?
- U. S. Steel notified the USW it had received a bona fide offer early in the strategic alternatives review process.
- U. S. Steel provided the USW with earliest practicable knowledge of the strategic alternatives process and Cleveland-Cliffs, the Union’s assignee, had an opportunity to “organize a transaction.”
- U. S. Steel provided the USW with more than the contractually-required 45 days to submit an offer; no action was taken on any offer until well past the expiration of the 45 days.
When does the existing BLA expire?
Eiji Hashimoto, President, NSC and Takahiro Mori, Executive Vice President, NSC wrote about their plans to grow U. S. Steel in The Wall Street Journal
read their Op-Ed here