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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
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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
Words:427
Previous Article:Pittston accord.
Next Article:Hotel settlement.


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