The United Steelworkers (USW) union has ratified a new four-year labor contract with integrated steelmaker Cleveland-Cliffs.
Base wages are expected to increase by 20pc during the period of the contract, and Cliffs has committed to invest $4bn at its union-represented facilities.
The ratification is likely to increase pressure on Cliffs' competitor US Steel, the last remaining steel company in Canada and the US to be negotiating a labor deal with the USW. US Steel's prior contract with the union expired on 1 September and was indefinitely extended.
A 48 hour notice period is required before either side can go forward with a lockout or a strike.
Negotiations between US Steel and the USW have been tense, with the USW pointing to increased costs for its members in US Steel's proposals, and the steelmaker filing an unfair labor practice complaint with the National Labor Relations Board in September.
According to a statement from the USW at the end of September, US Steel has proposed wage increases of 14pc. A statement from yesterday from the union says the two sides still remain apart on wages, healthcare, retirement, and vacation time.
