"Local Steelworkers Reach Deal"

In the Wednesday, Oct. 22 edition of the Sun News there is an article about the union negotiations and new contract reached at the local Georgetown, SC steel mill owned by ArcelorMittal in Luxembourg. A new 4 year contract was approved which will help ease the financial burden of about 100 workers who were placed on a 3 week suspension due to a "global economic slowdown" resulting in a decrease in the demand for steel. As a result of the new contract, all 14,000 members of the United Steelworkers union will get a $6,000 bonus. This will certainly help those who were temporarily laid off in Georgetown. A strike was averted through negotiation and as a result workers receive a $1 hourly increase for the first year and 4 percent per year in each of the following 3 years. Health benefits and other benefits increased. Retiree benefits were cut by 35%. The contract also requires ArcelorMittal to make capital investments in its U.S. plants. ArcelorMittal is the world's largest steel producer and employs more than 320,000 people in over 60 countries. Eighteen thousand of those employees are in 17 U.S. locations.

This is an example of how union contract negotiations should take place. It appears as though both sides left the table happy. Had a strike occurred the company and the union would have been cast in a negative light resulting in negative consequences for both. A decline in employee moral was avoided and more importantly the agreement gives both the union and the company the benefit of a positive image to society.