United States Steel Corporation (NYSE:X)’s steeling itself for worker vote result
United States Steel Corporation (NYSE:X) had locked-out around 1,000 workers on 28 April 2013 at its Lake Erie in the Ontario region. The company said that they will be voting on the company’s latest contract offer today. In its quarterly report, X said that if the United Steelworkers Local 8782 members approve this contract, the operations at the unit would restart as soon as possible.
United States Steel reported a Q2 loss that it attributed to lower sales. These had been affected by a dip in shipments that were linked to the labor-dispute and to maintenance projects that ended up increasing the costs. This lockout affects almost 1,000 workers at the facility. This facility accounted for around 10% of the company’s raw-steel production in 2012.
The lockout story
As per the updates that had been posted on the official website, the union has not endorsed this proposal for the contract. Ontario’s labor-relations authorities will supervise the vote. The company had put forth an offer in April, which has been rejected by the workers. This was just prior to the lockout. The last lockout at this unit was in Aug 2009 and had lasted 8 months.
United States Steel Corporation (NYSE:X)’s net loss for the Q2 was $78M or 54 cents/share in comparison with the $101M net income or 62 cents/share that it stood at, a year earlier. Net sales dropped from $5.02B to $4.43B. On an average, analysts had projected a 78 cents/share loss on net sales of $4.61B.
About the company
X is involved in producing and selling steel mill products in the North American region and Europe. These include tubular and flat-rolled products. The North American operations include coke and iron ore production facilities, real estate operations and transportation services. Its 3 reportable segments are – Flat-rolled Products, U. S. Steel Europe and Tubular Products.