Steel workers union approves new labor agreement with Cleveland-Cliffs (NYSE: CLF)
Cleveland-Cliffs (NYSE:CLF) said Wednesday its new four-year labor agreement with the United Steelworkers has been completed ratifyincludes 12,000 employees represented by USW at 13 operating locations.
In the agreement achieved a few weeks agobase salary is is expected to grow 20% over the contract period, and the company has committed to spending $4 billion on union-represented facilities.
Cleveland-Cliffs (CLF) said the negotiation cycle with USW has ended, with contracts valid through September 2026.
Argus says approval will increase the pressure on US Steel (X), the last remaining steel company in the US and Canada to negotiate a labor agreement with USW.
US Steel’s (X) the previous contract with the union expired on 1 September and was renewed indefinitely.
Stocks of Cleveland-Cliffs (CLF) and US Steel (X) are inexpensive, but “there are significant differences when it comes to valuation, balance sheet strength, shareholder returns, resilience, etc.,” wrote Jonathan Weber in a note. analysis posted on Seeking Alpha.