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NATIONAL STEEL PLEASED WITH OVERWHELMING RATIFICATION OF CONTRACT BY USWA

 MISHAWAKA, Ind., Aug. 27 /PRNewswire/ -- National Steel Corporation (NYSE: NS) expressed satisfaction at today's announcement by the United Steelworkers of America (USWA) that union members at the company's three mills and headquarters office had ratified a new six-year contract by a margin of more than nine to one.
 The vote was overwhelmingly in favor of the contract at all four locations.
 "The agreement strengthens the cooperative partnership we have enjoyed with the USWA since our landmark contract in 1986," said Ronald H. Doerr, president and chief operating officer. "Our major competitors are now just beginning to achieve that type of relationship with their work forces."
 The contract protects the company and the union from the possibility of a strike or lockout for a period of six years. Certain economic issues may be reopened by either party after three years, with any unresolved issues to be settled by binding arbitration. Other principal features include:
 -- Four $500 lump-sum payments between Aug. 1993 and March 1995, with workers having the option to select 25 shares of National Steel Class B common stock rather than cash for two of these payments;
 -- A 50-cent hourly increase in the base wage rate effective August 1995;
 -- Establishment of a voluntary managed care health care program with incentives for those using its network of providers;
 -- Agreement by the company to avail itself of the benefits provided by a voluntary employee benefit association (VEBA) to prefund employee post-retirement benefits, and to match any common stock dividends with an identical contribution into the VEBA;
 -- A new formula for calculation of pension benefits that provides for an increase in the minimum retiree pension payment; and
 -- Agreement for the USWA to nominate a candidate for a seat on the company's board of directors.
 Doerr said that the higher wage and benefit costs incurred through the contract must be met by "a renewed effort by all of us to increase our productivity and to cut all other costs to the greatest extent possible.
 "Despite the slow improvement in the economy," he added, "we're still in a very difficult marketplace. The competition from imports, the mini-mill segment of our industry and competitive products will remain intense through the remainder of the decade. We'll need a truly cooperative approach for us to achieve our goal of becoming America's most competitive steel company."
 National Steel is the nation's fourth-largest steel producer and has mills in Ecorse, Mich., near Detroit; Granite City, Ill., near St. Louis; and Portage, Ind., near Chicago. It is headquartered in Mishawaka, and has about 10,100 employees including about 6,300 represented by the USWA.
 -0- 8/27/93
 /CONTACT: Robert R. Toothman, media, 412-391-1469, or 219-273-7552, or Joseph A. Rainis, analysts, 219-273-7158, of National Steel/
 (NS)


CO: National Steel Corporation ST: Indiana IN: MNG SU:

CD-JM -- PG018 -- 6792 08/27/93 17:45 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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