Printer Friendly

Developments in steel.

Almost 2 months before their contract was due to expire, the Steelworkers and Allegheny-Ludlum Steel Corp. signed a 4-year agreement covering 3,500 workers at 5 facilities in Connecticut, Indiana, New York, and Pennsylvania. Allegheny-Ludlum is the largest producer of specialty steel products in America.

Under terms of the agreement, employees will receive an immediate $600 early signing bonus, a second $600 bonus on April 1, 1992, and 50-cent-per-hour general wage increases on April 1 of each year. The contract also includes two new monetary items, a profit-sharing plan and an "inflationary recognition program," both of which are linked to the company's economic performance. The profit-sharing plan kicks in when Allegheny-Ludlum's pretax income rises more than 4 percent a year, and potentially can generate wage gains up to $3.25 an hour for each hour worked in the preceding year. Payments under the inflationary recognition program are contingent upon both the company's pretax income rising more than 4 percent in the year and an increase in the Consumer Price Index (CPI) of more than 4 percent a year. Under the program, employees will receive quarterly payments equal to 1 percent of their base pay if the CPI rises 4 percent a year, and additional 1-percent payments for each full 1-percentage point rise in the CPI of more than 4 percent.

Several changes were made in the pension area, including a $4 increase in the minimum monthly pension rates, to $21.50 for the first 15 years of service, $23 for years 16-30, and $24.50 for more than 30 years; the roll-in of $2.36 in previously earned cost-of-living adjustment payments into employees' earnings for pension calculations; the elimination of workers' compensation benefits as an offset from pension benefits; and a 25-cent-per-hour increase (to 50 cents) in employee payments to personal retirement accounts.

Other terms include a $2 500 increase (to $5,000) in life insurance for retirees; a new optional tax-deferred savings plan; a new longevity incentive plan for employees with at least 30 years of service, based on age, with a $750 annual payment for employees aged 60 and under 62, $1,250 for employees aged 62 and under 65, and $1,500 for employees aged 65 and older; a drop in the number of years for retirees to maintain company-paid medical insurance (from 15 years to 10); and improvements in health care benefits for both active employees and pensioners, including increases in major medical maximums, establishment of chiropractic coverage, a mail-order prescription drug program, and a $650 increase ( to $1,300) in orthodontia coverage.
COPYRIGHT 1990 U.S. Bureau of Labor Statistics
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Developments in industrial relations; Allegheny-Ludlum Steel Corp. labor agreement
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Article Type:column
Date:May 1, 1990
Previous Article:Pittston accord.
Next Article:Hotel settlement.

Related Articles
Airline deregulation and labor relations.
National Steel-United Steelworkers.
National, Bethlehem settle.
Agreement at Alleghany Ludlum.
Japanese stainless steel sheet found dumped in U.S.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters