The union protested the employer’s application of the incentive rate (IR) within the Wheel Heat Treat Department (WHD). It was asserted by the union that due the installation of procedures in the department, the IR needed to be adjusted accordingly. Prior to the grievance, all forged wheels, rolled wheels, and circular sections were processed in the WHD exclusively and the incentive provided standards for all such products. The change in the product mix caused more frequent application of some IR’s and less frequent of others. The union recognized the fluctuating incentive earning without dispute. However, when a new heat-treating facility went into operation, this reduced the number of “rolled wheels” treated in the old facility. Rolled wheels processing carried a higher incentive rate. The union argued that the employer was diverting wheels to the new facility; thus, denying the grievants’ of the more lucrative IR. The employer stressed that the union disclaimed any argument that a change in product required adjustment or replacement of the disputed incentive. The only argument the union can ascertain was the diversion of certain wheels had depressed the grievants’ earnings. The board determined that the case was one where the incentive never provided substantial earnings for any significant period over many years. The evidence did not establish any change in the basic conditions when the new facility was activated. Award: grievance sustained. USS-7868-H (Sylvester Garrett, 3/12/71) (Nature of grievance-contract interpretation) (Reason for grievance (s) - incentive rates, incentive administration, incentive application)

Case 1


Publication Date


Litgant 1

United States Steel Corporation

Subunit 1

Eastern Steel Operations (Homestead Works: Wheel & Axle)

Litgant 2

United Steelworkers of America

Local 1


Grievance 1


Grievance 1 Date


Grievance 1 Step



Incentive Administration

Contract 1

August 1, 1968, Basic Labor Agreement

Contract Provisions Involved

Section 9C(2) of Basic Labor Agreement


Arbitration, Contract Interpretation, New Incentives, Incentive Application, Incentive Rate, Management Rights

Award 1



Dispute Resolution and Arbitration


Upload File