United Steelworkers, ArcelorMittal reach agreement

The United Steelworkers and ArcelorMittal, the world's largest steel producer, agreed Saturday to a tentative four-year contract.

The union has been negotiating with the company since April on a contract that would cover more than 14,000 workers and tens of thousands of retirees. The current contract expires Monday, and rank-and-file had given union leaders the authority to launch a nationwide strike if contract negotiations had failed.

While both sides declined to publicly discuss details of the contract, the agreement headed to members provides a lump sum payment of $6,000 following ratification, plus a $1 hourly increase in the first year and 4 percent increases in each of the following three years.

The summary, obtained by The Associated Press, also provides for an increase in the company's contribution to pensions for current workers and increases for retirees; fixed health care contributions through the life of the contract; and a $3 billion capital investment in ArcelorMittal plants.

In an e-mail, USW International President Leo W. Gerard wrote: "Our members and retirees at ArcelorMittal now have the opportunity to enjoy the employment security and retirement security they earned through years of hard work and sacrifice."

Michael Rippey, ArcelorMittal USA president and CEO, said in a statement, "We believe we have reached a positive outcome for all parties involved without disruption to our business operations."

The union has been negotiating with Luxembourg-based ArcelorMittal since April. On Tuesday, the union distributed a notice to members at the company's U.S. plants and cited a "lack of progress" in the talks. A day later, union members voted overwhelmingly in favor of the strike authorization if negotiations failed.

The contract affects hourly production, maintenance, office and technical workers at plants in Indiana, Ohio, Pennsylvania, New York, South Carolina, West Virginia and Minnesota.

ArcelorMittal employs more than 320,000 people in more than 60 countries. That includes about 18,000 employees at 17 facilities in the United States.

The company produces a tenth of the world's steel. It has said it plans to increase shipments by more than a fifth by 2012 due to robust global demand.

The United Steelworkers union represents 850,000 workers in the United States and Canada. Its members work in the metals, rubber, chemicals, paper and oil refining industries, as well as in the service and public sectors.

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On the Net:

United Steelworkers: http://www.usw.org/

ArcelorMittal: http://www.arcelormittal.com/