Local 1005 and US Steel come to agreement to end lock out, workers unimpressed

U.S. Steel workers were unimpressed by the details of a tentative agreement to end their 11-month lock out — but a slim acceptance is expected.
The workers, members of Local 1005 of the United Steelworkers, have been on the picket line since last November. On Monday a tentative agreement with the company was reached. It is to go to a ratification meeting Saturday.

The plan is little changed from previous company offers — a signing bonus of $3,000 and a profit sharing plan few expected will pay anything for several years.

On the critical issue of pensions there was no movement by the company at all on its demands to close the current defined benefit plan to new members, directing them to an RRSP-like defined contribution system
One small change was a company offer of $1,000 to retirees getting pensions of less than $1,500 a month.
Members interviewed outside the meeting were mostly unexcited by the offer.
“This isn’t even as good as Lake Erie got, but the union promised to take it to the members to accept or reject. Now it’s up to the individuals.” said one worker who refused to give his name.
Local 1005’s greatest fear is that if the union makes major concessions now, the company will only be back for now when the contract expires.

A late issue to arise was a company demand it be permitted to call workers back “at its sole discretion” outside the normal seniority rules.

The company’s current position takes away what the union dubbed the “slave clause.”
Analysts have consistently said it was unlikely the company would make any concession on its pension demands because it must negotiate a new contract with 17,000 American workers next year and can’t leave the Hamilton plant with a defined benefit plan and indexing no other workers in its system have.