AP reported that negotiators for the United Steelworkers union say their contract talks with ArcelorMittal, the world's largest steel company, are slow and frustrating so far.

Bargaining began last week in Pittsburgh on a contract to replace the one expiring September 1st 2012. It covers 14,000 employees in eight states of Pennsylvania, West Virginia, Ohio, Illinois, Indiana, Minnesota, Louisiana and South Carolina.

Luxembourg based ArcelorMittal wants to slash wages and benefits, and have the unilateral right to cut wages during business slowdowns. It also proposes redesigning incentives, freezing company contributions to certain pension plans, and eliminating retiree health care and pension benefits for workers hired after September 1st 2012.

The company says it needs to dramatically cut costs to remain competitive.

In a membership update on July 16th 2012, the union said the two sides remain far apart.

Source - Associated Press

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