Benefits & Executive Compensation News

U.S. Steel Subsidiary Accused of Pruning Workers From Pension

Feb. 21, 2020, 3:50 PM

A former employee of a United States Steel Corp. subsidiary claims he was terminated as part of a pretextual scheme to remove workers from the “coveted” Carnegie Pension Fund, according to a lawsuit docketed Thursday in the Western District of Pennsylvania.

Edward Scott’s proposed class action accuses U.S. Steel, Union Railroad Co., and a labor union of working together to manipulate the railroad’s “demerits policy” so that pension-eligible employees could be fired for cause. Scott says a “significant and disproportionate majority” of employees covered by the Carnegie pension fund were terminated shortly before they hit key service milestones that would...

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