Although we are not satisfied with the little progress we have made at the table since negotiations began on July 9, 2018, on Thursday, we reached an understanding to extend our current contracts for a short period of time while negotiations proceed, subject to a 48-hour notice if either party intends to terminate. Our negotiating committee has been patient in the face of ArcelorMittal’s attempts to frustrate us. We have sought out common ground where management only seeks to divide. We have provided reasonable alternatives to the company’s unreasonable demands. Management’s latest proposal is a three-year contract with wage increases of 2% in the first year and 11⁄2% each year thereafter, as well as a signing bonus worth approximately $1,980 (after taxes). On the other hand, the company’s proposal includes concessions that will cost the average hourly employee about $4,629 per year, or $13,887 over its three-year term. Even after including the proposed wage increase and lump sum payments, the company’s proposal would end up costing the average hourly employee about $2,265 per year, or $6,795 over the term of the proposed contract.

Provision Yearly                                                                                             Change Three-Year Change

Wage Increase and Lump Sum $2,365                                                        $7,095

Hot-Rolled Steel Bonus Threshold - $875                                                  $2,625

Removing Incentive from Labor Grade 1 - $936                                        $2,808

Capping Weekly Vacation Pay - $309                                                            $927

Healthcare Premiums - $1,753                                                                      $5,259

Insurance Plan Design - $757                                                                         $2,271

Economic Impact Per Employee - $2,265                                                      $6,795

These concessions do not include all the company’s demands – such as to reduce SUB pay or eliminate the full week guarantee. We remain committed to negotiating a fair agreement – ArcelorMittal steelworkers have earned and deserve wage and pension increases and health insurance without $200 monthly premiums for family coverage. Nonetheless, all USW members should plan to report for all scheduled shifts and continue to focus on working safely. Unless the character and direction of our contract negotiations with ArcelorMittal change quickly and dramatically, we will plan to schedule membership meetings at all locations during the month of September to discuss our next steps. To receive updates about bargaining via text, be sure to send “AM” to 47486.