For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

BETHLEHEM, Pa., July 30, 1996 -- In 1993, Bethlehem Steel and the United Steelworkers of America (USWA) negotiated a six-year labor agreement continuing through 1999, with a reopener in 1996 for specified payroll items and employee benefits. Under the terms of the reopener, if the parties could not reach a settlement each party was to submit its final offer to an arbitrator who would, after a hearing, select one of the two offers. A hearing was held before Arbitrator Richard Bloch in Washington, D.C. from June 17 to 20. Arbitrator Bloch has notified the parties that he has selected the Bethlehem offer.

We believe that, in selecting Bethlehem's offer, his decision will be in the overall best interests of our USWA represented employees and of Bethlehem.

The changes will be effective August 1, 1996 and will continue during the term of the labor agreement until August 1, 1999, and will result in an increase of about 3 percent per year in wage and benefit costs per hour. The changes include three hourly wage increases totalling $1.00 per hour ($.50 per hour in August, 1996, $.25 per hour in August, 1997, and $.25 per hour in August, 1998); lump sums of $1,000 ($500 in May, 1998 and $500 in May, 1999); additional lump sums up to $1,000 depending on levels of profitability ($500 in May, 1998 and $500 in May, 1999); and the continuation of one floating holiday each year for the next three years.

With this contract reopener now finalized, Bethlehem will continue to work with the Union and our employees to improve our productivity and competitiveness.