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Cutting costs reduced operational safety at U.S. Steel

U.S. Steel is a legacy company that most people would not associate with safety. And, unfortunately, most people would be right. According to a study by Axiom Capital Management, U.S. Steel's relentless cost-cutting program has undercut efficiency and safety. This post will go over those cost-cutting measures and how they impact safety.


Last year, U.S. Steel was able to save $705 million through its Carnegie Way cost-cutting program. Unfortunately, Axiom Capital Management identified several issues that might be linked to the Carnegie Way program. Specifically, Axiom noted that there were operational issues which caused some outages and reduced output by 125,000 tons in the last quarter.

U.S. Steel lacked the flexibility to make up the drop because it had idled several plants. Moreover, workers were on the job for longer hours which was reducing their efficiency. As an example, Axiom pointed to the September, 30th death of Mr. Arizola who was killed while repairing a crane. According to Mr. Arizola's wife, he was working 60 to 70 hours a week and looking for a new job.

Axiom noted that U.S. Steel was boosting short-term profits at the expense of long-term capital investment and safety. Undoubtedly the company will have to pay for these expenses; it is merely delaying the inevitable. The result is that more workers are injured, and lives are lost.

Sometimes no matter how vigilant you are, it isn't enough. If you were injured while on the job, you might want to contact a lawyer. Companies that pursue relentless cost-cutting strategies will probably try to resist your workers' compensation claim. A lawyer can help you overcome the legal and administrative hurdles to ensure that you get compensation for your work accident. You need that money to pay your medical bills and mortgage, don't risk it without the assistance of an attorney.


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