Union alleges Cliffs seeks to wrest concessions

OREANDA-NEWS. September 22, 2015. United Steelworkers union is calling on about 2,600 of its members at iron ore producer Cliffs Natural Resources to rally tomorrow in Negaunee, Michigan, to support its efforts to block Cliffs from allegedly seeking to wrest concessions from the union in contract negotiations.

The union accused Cliffs of seeking to use the market downturn to "make deep and permanent cuts" that would erase more than three decades of "collective bargaining progress."

Union negotiators this week met with Cliffs negotiators, who presented the union with a contract proposal that the union said is "filled with unrealistic proposals for concessions on a number of cornerstone contract items" such as retiree and active health care, personal days and profit sharing.

The union said Cliffs was also seeking changes in sickness and accident benefits in negotiations that would replace the current contract that expires on 1 October.

Cliffs spokesmen were not immediately available for comment.

Cliffs on 29 July cut its full-year US sales and production outlook for a second time this year, reflecting low-capacity utilization at US steelmakers in the face of "heavy imported steel penetration."

The union is also in contract talks with US steelmakers ArcelorMittal and US Steel for new contracts after their old contracts expired on 1 September.