Tensions rise in the US in the steel sector

Next week, 30,000 US steelworkers are due to expire, including 2,300 at ArcelorMittal's Minnesota plant, which is now in its worst situation in years. Steelworkers rallies erupted across the country, including in Minnesota. This month, a Pennsylvania stainless steel plant, Allegheny Technologies, was locked down by union members.

The National Steelworkers Association has called for "massive" rallies outside of ArcelorMittal's headquarters in Chicago and US Steel in Pittsburgh, where steelworkers are picketing. From the point of view of the United Steelworkers, US Steel and ArcelorMittal are asking for too many concessions. “People are more concerned this time than ever,” said one ArcelorMittal employee who worked for nearly eight years as an electrician at the Menorca plant in Virginia.

The unions believe that the U.S. Steel and ArcelorMittal are using the temporary downturn in the US steel market "as an excuse to take advantage of contract workers." And the U.S. Steel, and ArcelorMittal, the world's largest steelmaker, declined to comment on the matter, but both have employment contracts with the Steelworkers' Association that expire on Tuesday.

In recent weeks, all steel company officials have complained about industrial unrest, historically low prices for iron ore and steel, and a flood of cheap imported steel goods from China, which is causing them to lose millions of dollars. ArcelorMittal said the company's fixed costs have risen since 2008, while steel prices have dropped 50 percent.

The Steelworkers' Union acknowledges the industry's slowdown, but says companies should not try to fix their "dramatic" problems for workers by cutting health care costs, vacation pay, overtime and unemployment benefits. ArcelorMittal is pushing workers into a two-tier pay system in order to pay new employees much less. “The market is weak and we are ready to accommodate the company, but we are not ready for the huge concessions that take us back to 1960,” said Anderson, an electrician at ArcelorMittal.

In May on the U.S. Steel laid off 812 and 2,000 workers at its factories and the Keetac and Minntac and Keewatin and Mountain Iron mines, respectively. Mesabi Nugget laid off 200 workers at Hoyt Lakes last month. Only ArcelorMittal did not fire workers. ArcelorMittal lost $ 538 million in the first six months, while the U.S. Steel has lost 336 million dollars and is now withdrawing several non-core businesses.