PITTSBURGH Steelworkers union OKs contract with U.S. Steel

U.S. Steel plans to eliminate 5,700 jobs as part of the acquisition of National.
PITTSBURGH (AP) -- Thousands of Steelworkers voted overwhelmingly in favor of a new, five-year contract with U.S. Steel Corp., clearing the way for the company's acquisition of bankrupt National Steel.
The 3-to-1 margin of approval by members of the United Steelworkers of America on Monday will mean the loss of thousands of jobs, but secures pension and benefits for many more, and validates the union's role in shaping the consolidation of the ailing domestic steel industry.
"This historic agreement marks the first time that workers at two operating integrated steel companies have negotiated an agreement to facilitate the merger of their operations into a single entity," said Steelworkers President Leo Gerard.
U.S. Steel has said it plans to eliminate approximately 5,700 jobs, about one in five existing jobs, to improve productivity at U.S. Steel and National plants. The company has offered incentives worth as much as $40,000 to workers who volunteer to retire, the union said. Job cuts will affect a larger percentage of managers and supervisors while protecting the benefits of 19,000 active workers at both companies and many more retirees, the union said.
Workers voted 10,758 to 3,532 to approve the contract, the union said.
The backing of the Steelworkers was pivotal last month in swaying a federal bankruptcy judge to approve U.S. Steel's purchase of National over competitor AK Steel.
Despite substantial declines in the number of active members, the Steelworkers union demonstrated the ability to flex its muscle in demanding a "humane" consolidation of the industry.
U.S. Steel spokesman John Armstrong said the labor contract represents "a new era in our company's history."
The company has said it could close the deal in the second quarter, which ends June 30, if the labor contract was approved.