According to a filing with the U.S. Securities and Exchange Commission (SEC) on August 21st, the United States Steel Corp. will be freezing employee pension benefits for all nonunion employees.
By the end of this year, the U.S. Steel Corp. will move an estimated 1,300 employees to a 401K plan. Sarah Cassella, the corporation’s spokesperson, explained that the decision was made due to the company’s Carnegie Way, which is part of the company’s efforts to improve its ability to turn a profit despite current economic circumstances.
The corporation made the following statement regarding its plan:
The way we do business is through The Carnegie Way … By using The Carnegie Way Framework, we believe this change strengthens the financial foundation of our company, provides sustainability for our business and brings us closer to our goal of restoring U.S. Steel’s status as the iconic corporation.
As reported by the Pittsburgh Business Times, “This decision does not impact the company’s union employees. U.S. Steel (NYSE: X) is currently negotiating a new labor agreement with the United Steelworkers union, according to Cassella. The company’s contract with the union is set to expire Sept. 1.”