Members of United Steelworkers (USW) on Friday ratified a contract with U.S. Steel that gives 16,000 workers at the company's U.S. facilities a 4.5 percent increase in wages over the next three years.
U.S. Steel said the financial impact of the new contracts, including a separate agreement with 1,000 employees at U.S. Steel Tubular Products Inc's Texas facility, would be felt in the third quarter, with a $35 million pre-tax charge for lump sum payments.
USW International Vice President Tom Conway, who led the negotiations for the union, called the agreement fair for workers and retirees, adding that the latter would have their health care benefits protected. "Both sides should be proud of the work they have done," Conway said in a statement.
The USW, which also represents 14,000 steelworkers at 15 ArcelorMittal U.S. facilities, reached a tentative three-year contract with the world's largest steelmaker earlier this month.
The USW represents a total of about 850,000 workers in the United States, Canada and the Caribbean.
(Reporting by Braden Reddall in San Francisco; editing by Gunna Dickson)