Business Notes LABOR

Like two punch-drunk prizefighters who decided that enough was enough, USX and the United Steelworkers reached a tentative settlement last week of the longest steel strike in U.S. history. Steelworkers President Lynn Williams and the union's chief negotiator Jim McGeehan were all smiles as they prepared to put the agreement to a vote of the membership, but the truth was that both sides lost. The 170-day strike forced USX, formerly known as U.S. Steel, to lose $500 million in orders. Meanwhile, 22,000 union workers forfeited six months of pay. The agreement does not solve the industry's problem of producing steel at too high a cost. USX won a paltry wage reduction worth $92 million a year. Even with the cut, workers get $22.90 an hour, vs. $3 to $5 for South Korean competitors. As a result, the U.S. industry may continue to rust.