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US Steel celebrates massive investment into new pellet facility as steelworkers picket contracts

Oct 06, 2022 09:27AM ● By Content Editor
Photo: Employees lined up at Keetac, which will begin making DR grade pellets for U.S. Steel - WDIO News

By Quinn Gorham and Robb Coles - Northern News Now - October 6, 2022

US Steel visited Keewatin to celebrate a $150 Million investment into Keetac Wednesday.

State leaders and US Steel executives gathered to tout the latest investment on the Iron Range.

“Today is an especially exciting day for Keetac with the investment in DR [grade pellets],” said Lukas Klemke with US Steel.

DR-grade pellets are equipped to be processed in an electric-arc furnace, making them more green and more energy efficient than other pellets.

“It can be used in the electric arc process. So pretty simple, you’re just taking all of the impurities out and that’s really the big deal,” Klemke said.

State leaders like Minnesota’s Governor Tim Walz expressed the important role the facility will play in the future of iron mining in the Arrowhead.

“We need to be taking our economy and our state skating to where that puck is going to be,” he said. “I’ll tell you what, US Steel just skated to where that puck is going to be with this announcement, and we need the rest of us to make sure we’re taking it up with them.”

Mining industry leaders, like Kristen Vake with the Iron Mining Association, say the move will also create more jobs.

“This is going to provide stability for the folks who work here at Keetac and for the West range. This is a really big deal for this area,” Vake said. “We’re excited for the future. The future of iron mining is great.”

Meanwhile, as US Steel leaders celebrated on the inside, members of the United Steelworkers Union took to the streets to protest, as they continue contract negotiations with U.S. Steel.

Right now workers at U.S. Steel’s facility in Keewatin are working on a contract that expired September 1.

They’ve been in negotiations for months but haven’t reached an agreement yet.

Union members from different mining facilities across the region took part in the protest, including workers from Hibtac, Minorca Mine, U-Tac, and more.

According to union reps, workers are asking for better pensions, better wages, and quality health care.

Some union officials said U.S. Steel has proposed health plans that limit access to providers and could cap medical costs.

Union reps said due to the nature of their jobs, a comprehensive health care package is a must.

USW Staff Rep. John Arbogast said holding a celebration like this in the midst of ongoing contract negotiations is frustrating for workers.

“We look at it as a slap in the face. You know, the timing could have been a little better for this event. I’m not saying we’re headed towards a work stoppage, but it could happen and then our people will be on the street,” Arbogast said.

Two local union leaders flew to Pittsburgh this week to continue negotiating with US Steel leaders.

Many union workers at Keetac said they’d like their new contract to be comparable to the recent agreement made for workers at Cleveland-Cliffs.

According to Cleveland-Cliffs, those agreements just became effective on October 1st, and cover about 2000 employees in our region.

USW reps said their contract with US Steel will impact about 380 workers at the Keetac facility.

We reached out to leaders with US Steel for comment on the negotiations, and they provided us with the following statement.

“We appreciate our employees’ dedication and respect their right to assemble. We continue to bargain with the USW in good faith and remain optimistic that we will reach an agreement that is best for all.” - US Steel Representative.


To read this original story and more news, follow this link to the Northern News Now website.

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