On Monday it was announced that a U.S. Steel and United Steelworkers Union deal has been reached as a “tentative agreement”. The consensus has helped to avoid a steelworker strike that would involve more than 14,000 steelworkers in tubular operations, domestic flat-rolled steel, and ore mining facilities throughout the eastern United States.

a picture of a plant where steel plant a steelworker strike could have taken place if not for recent headway in contract negotiations.

Steelworker Strike Update

Details of the agreement are under wraps while the proposed four-year contract is still under reviewed.

U.S. Steel President and CEO David Burritt released a written statement in which he described the agreement as “fair and in the best long-term interests” as it pertains to U.S. Steel’s and its employees’ futures. Burritt’s stamen goes on to say “Together, we’ve agreed on terms that will create certainty and stability for our many stakeholders, enable our company to implement our long-term business strategy, which includes continued, responsible investments in our people and plants, and position U.S. Steel to remain a leader in the highly competitive global steel industry.”

According to USW Local 1899 vice president Jason Fernandez, Local presidents are returning from negotiations in Pittsburgh and will take time to deliberate with union members on the best course of action. The eventual voting process will be planned to accommodate workers schedules, so it may take up to a week before a decision is made regarding whether to accept U.S. Steel’s proposed contracts or not.

Steelworker Strike Background

Negotiations have been taking place since July, leading up to the September 1st expiration date of worker contracts. Things became heated when it seemed clear that U.S. Steel would not make good on a pay raise that workers had done without over the course of three years in the interest of the company’s future. As company profits reached into the billions over the last three years, workers grew incensed that upper management showed no signs of reciprocation for the hit workers took during the last round of contract negotiations. A steelworker strike was authorized by unions across the eastern US, but never fully enacted.

ArcelorMittal, the largest steelmaker in the US, remains in talks with the USW over contract negotiations and a strike is still possible for the company’s near 16,000 steelworkers.

Steelworker Strike Effects On 2016 Midterm Elections

It has been speculated that the turmoil in the US steel industry will have a significant effect on the outcome of the midterm elections.

While president trump has imposed tariffs on aluminum and steel imports as an effort to drive demand to U.S. producers, not everyone has enjoyed the renewed activity. Jeff Astle, an employee of Universal Stainless and president of Local USW 9531, asserts the contract recently signed by his chapter to be the best he’s seen in 23 years. When asked about what’s changed, he stated, “There was once upon a time I was only working 40 hours a week, barely, but now business is thriving – we are working so many hours it’s not even funny.”

While that may be the case for a veteran of the industry, low-level workers lament that record profits of steel producers, like U.S. Steel and ArcelorMittal, have failed to trickle down. These workers represent a substantial voting bloc for the incumbent and the Republican party. Without the support of these steelworkers, an air of uncertainty hangs looms as the November elections draw near. Talks of walkouts are circling and more than 31,000 steelworkers have granted union negotiators the power to activate a strike that would affect the country’s two largest producers, U.S. Steel and ArcelorMittal. The two companies account for nearly half of all steel produced in the United States.

Material handler at Universal Stainless Henry Polite finds himself between a rock and a hard place, stating “I’m proud to be a steelworker, but I would just like to see more concern for the underdog [the workers], than just the higher-ups.”

The United Steel Workers Union summed up the sentiments of neglected workers in a statement that alleges, “Top company officials have given themselves more than $50 million in pay and bonuses since 2015 while the hourly workforce has not received a wage increase over the same period.”

When it comes to how these resentments could manifest at the polls, Soren Fanning, a history professor at Robert Morris University, alluded to 2016, when the presidential election was all but sold as, ‘we are bringing the steel industry back to Western Pennsylvania, back to America,’. Trump won by fewer than 80,000 votes in the region. Fanning suggests that “People vote their frustrations [And] right now what you’re seeing amongst steelworkers is a real sense of urgency that these promises of better conditions, more purchasing power, more health care get fulfilled and, if they don’t, they are going to go with the party of change.”

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


USW negotiations continue as representatives report that progress had been made in the latest round of contract bargaining with US Steel. Negotiations between the two entities will continue and a strike will be avoided provided that gaps in asks from union members can be filled in a reasonable timeframe.

Currently, US Steel proposes an additional $145 healthcare premium per month to be used toward healthcare and dental coverage. Representatives for the USW negotiations calculated the lifetime cost to workers over the term of the agreement would total $10,440. The number would eat up the proposed wage increases from the USW and effectively put workers back at square one.

Key issues that remain to be resolved include health and dental costs, incentive pay, supplemental unemployment benefits, and disagreement on the use of a Voluntary Employees Beneficiary Association fund.

A picture of a steel production plant Like those where US Steel workers are considering organizing a strike.

USW Negotiations

US Steel released its most recent contract proposal publicly, which provides:

  • A $3,000 ratification bonus to be paid within 30 days of contract ratification to employees accruing pension service as of Sept. 1
  • $3,000 bonus to be paid to the same category of employees as of Sept. 1, 2021.
  • Basic wage increases of 4% effective Sept. 1, 2018
  • increases of 3% on Sept. 1 of each year 2019 through 2023.

This marks the 4th consecutive week of contract negotiations between US Steel and the United Steelworkers Union.


Following this week’s announcement that US Steel workers voted in favor of strike approval, ArcelorMittal steelworkers across the region have mobilized in preparation for a strike authorization vote of their own. The vote will take place next week on Monday.

Members will meet with USW leaders at the meetings, where they will receive updates on the expected bargaining process, a rundown on strike rules, review benefits afforded to members during a strike, and, if deemed necessary, pursue strike authorization. A recently released update included the statement, “If significant progress is not made by early next week, we will return home to deliver detailed reports at membership meetings and seek your support for a strike authorization.”

If the strike is approved, the United Steel Workers Union members at ArcelorMittal locations throughout the United States could join US Steel steelworkers in a complete work stoppage in the event contract negotiations fall apart. USW officials and steel companies have been in contract negotiations for months leading up to the workers’ September 1st contract expiration date.

ArcelorMittal Steelworkers Unsatisfied With Proposed Terms

ArcelorMittal has earned the ire of steelworkers, who have not received a pay raise in three years, for proposing concessions that include hits to supplemental unemployment, incentive, vacation pay, hot-rolled steel bonuses, and health care. Union representatives communicated that these concessions could result in as much as an additional $8,000 per year in out-of-pocket health costs for the affected families.

a picture of steel rods like those produced by ArcelorMittal Steelworkers.

US Steel released it’s own update on Wednesday of this week, saying, “We have submitted a revised proposal to USW leadership that reflects the ongoing dialogue during our most recent round of negotiations. The revised six-year proposal, which we strongly believe is in the best long-term interest of all U.S. Steel stakeholders, includes a 14% base wage increase over the term of the agreement, guaranteed profit sharing, and healthcare premiums offset with transition payments.”

Currently, U.S. Steel, ArcelorMittal, and workers are operating under contract extensions.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


As the new year begins for National Tube Supply, they look forward to the first full year using their brand new Epicor 10 system. It’s been a long haul for them, and us, taking nearly three years to implement.

Epicor delivered a massive update to their system between the beginning of the project and E10 release. Based on the improvements of the system and NTS’ needs, the decision was made by their management team to bypass Epicor 9, going directly to Epicor ERP 10 and the most modern version of the Epicor ERP solution at the time. 

National Tube Supply Epicor 10 Upgrade Goes Live

The ribbon was cut on their new system on November 27, 2016, and NTS was able to start shipping and invoicing on the second day. There were only minor cleanups to take care of and a few hiccups related to the requested customization to their system. NTS has the highest level of customization of any Encompass Solutions partner. After creation, tuning, fine-tuning, and even writing their own staff user manuals, NTS hit the ground running.

an image of the manufacturing floor at a National Tube Supply facility

The driving factor to upgrade NTS’ preexisting Verticent system to Epicor was an effort to remain competitive. National Tube Supply has four different warehouses in North America (in both the US and Canada), and further refining their inventory planning and tracking was their number one priority.

“Several of our standard modules are working very well for NTS, but the true power of an Epicor system lies in the custom features we build into the ERP. Encompass introduced barcoding to the job picking process, vastly reducing the man-hours needed to assemble an order and generate the paperwork needed to track and ship it. Geographic data based on the customer’s location and the availability of product across the network of warehouses allowed us instantly create orders with not only multiple destinations but multiple sources of product. The process finishes with a single-click shipment, which also enables invoicing immediately.”

In 2017, NTS expects that inventory turns will increase as planning moves forward hand-in-hand with automated control of processing, reducing the costs associated with inaccuracy, and expanding their market share through greatly increased efficiency.

Of course, Encompass will be there every step of the way, not only ready to help when IT problems crop up but also to further refine their operations via BPR. Now that the system is up and running, we’re already planning NTS’ Phase II of improvements.

Three years of commitment and one world-class ERP system: Just another day at Encompass!

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.