Contents

LettertoAllUSWMembersatU.S.Steel ...............................................................................i . TermofAgreement.....................................................................................................................1 Economics.....................................................................................................................................1 SigningBonus...........................................................................................................................1 WagesandLumpSumBonusPayments.............................................................................1 . ProfitSharing............................................................................................................................2 SupplementalUnemploymentBenefits................................................................................2 Pensions........................................................................................................................................3 U.S.Steel&CarnegiePensionFund.....................................................................................3 SteelworkersPensionTrust....................................................................................................3 RetirementPaymentforFormerEmployeesofNationalSteel.........................................3 CashPaymentstoSurvivingSpouses..................................................................................3 AdditionalPaymentstoSurvivingSpousesandPensioners............................................3 AnnualPaymentstoUSSPensionersandSurvivingSpouses..........................................4 PaymentstoSurvivingSpousesofFormerNationalSteelEmployees............................4 ActiveInsuranceBenefits .........................................................................................................4 . RetireeInsuranceBenefits........................................................................................................6 RetireeHealthCareCap.........................................................................................................6 ChangesinthePPOMedicalBenefitPlanforNonMedicareEligibleRetirees.............7 ChangesintheMedicareCarveOutPlan........................................................................7 ParticipantPremiums............................................................................................................10 HealthCarePlansforNationalSteelRetirees...................................................................10 LanguageIssues........................................................................................................................11 Health,SafetyandtheEnvironmentIssues........................................................................12 . BaseRatesofPay ......................................................................................................................13 .

Important Notice:
In accordance with the Unions voting procedures, the ratification vote will be based on one member, one vote. The vote will be conducted by each Local Union. The results will be totaled, and each members vote will count equally. The majority of the total votes cast will determine the results.

September10,2012 DearBrothersandSisters: Fouryearsago,whenwenegotiatedourlastcollectivebargainingagreement,U.S.Steel wasthemostprofitablesteelcompanyinthecountry.Priceswerehigh,timesweregood, andourpositionatthebargainingtableneverstronger. Asaresultofthehardworkofourbargainingcommittee,andthesolidarityandstrength ofourmembershipinrespondingtothechallengesourindustryhadfacedinprioryears, our2008agreementrepresentedamajorachievementinthehistoryofourunion.We wereabletoprovidesignificantwageandbenefitimprovements,whilemakingno concessions. Notlongaftertheinkwasdryonthatcontract,though,everythinghadchanged. Theeconomiccollapseoflate2008,andtheGreatRecessionthatfollowed,devastatednot onlytheU.S.economy,buttheglobaloneaswell,andleftthesteelindustryinaholeout ofwhichithasyettofullyclimb. ThatholewasthepositionwefoundourselvesinaswesatdownwithU.S.Steelearlier thisyeartobargainanewcontract.Andwhileitclearlyisstillachallengingtimeforthe Americansteelindustry,andforAmericanmanufacturingasawhole,weareontheway back. Weknowthatthisisnotthesummerof2008,butwerecognize,justasclearly,thatitis notthewinterof2008either. Knowingthatwehadmomentumonourside,weapproachedthisyearsroundof bargainingwithaspiritofcooperation,butalsooneofdetermination. Weweredeterminedtoreachafairdealthatwouldensureastable,longtermfuturefor allUSWmembersandretirees,andforthecompany.Withthesolidarityofourmembers, standingtogether,workinghardandstayingstrong,webelievewehavereachedafair agreement. Themostsignificantissueinthisyearsnegotiations,fromthebeginning,wastherising costofhealthcare,bothforactivemembersandforretirees.Weapproachedthis complicatedissueverydeliberatelymakingnodecisionsuntilwehadstudiedthe problemfromallangles.Fromtheoutset,wewerecommittedtomakingsureUSW members,active,retired,andthoseoffuturegenerationscouldenjoyaccesstohigh quality,lowcosthealthcarewhilealsoensuringastableandsecurefutureforthe company.

ii
Inadditiontosecuringourhealthcarebenefitsfortodayandtomorrow,wewereableto securemodestwageincreases,alumpsumsigningbonus,andacontinuedcommitment toprofitsharingsothatwecanenjoythefullbenefitsofourhardwork. Wefoughthardtoprotectandexpandourcontractlanguageonissuesincluding bereavementleave,theinflationrecognitionpaymentandovertimemealallowance. Weveexpandedourvoiceintheworkplaceintheareasofcivilrights,corporate governance,schedulingandshiftpreferences,andgrievancesandarbitration.Weare proudoftheopportunitiesweveopeneduptomembersthroughtheworkforcetraining programandthemaintenancetrainingprogram,aswellastheadvancement opportunitiesavailablethroughtrainingandtesting. Asalways,thehealthandsafetyofourmemberswasatoppriorityforourteamatthe bargainingtable,andweworkedhardtoprotectandexpandtherightsofourbrothers andsisterstoparticipateinaccidentinvestigations,therighttoadequateprotective equipment,areasonablesubstanceabusepolicy,andlanguagegoverningergonomics, emergencyservices,gasrescueandadministrativesafety. Asyoureviewthedetailsoftheproposedagreementinthefollowingpages,pleaseknow thatnoneoftheseaccomplishmentswouldbepossiblewithoutthehardworkofthose whocamebeforeus,andwithoutthesolidarityofthosewhoarestandingupandfighting withusnow.Butwhileweappreciateandcelebrateourpastandourpresent,everything wehavedonehasbeenwithaneyetowardthefuture:Afuturethatwebelieveisbrighter becauseofallofthehardworkUSWmembersdidtomakethisagreementareality. Withthatfutureinmind,westronglyrecommendthistentativeagreementfor ratification. Insolidarity,

Leo W. Gerard
InternationalPresident BSICChairman

Tom Conway
IntlVicePresident BSICSecretary

Mike Millsap
SubDistrictDirectorand BargainingCommittee Secretary

Dave McCall
Director,District1

Michael Bolton
Director,District2

Jim Robinson
Director,District7

Dan Flippo
Director,District9

John DeFazio
Director,District10

Bob Bratulich
District11Director

Mickey Breaux
Director,District13

U.S. Steel Master Agreement Settlement Summary

Term of Agreement
Ifratified,theProposedAgreementwillbeeffectiveSeptember1,2012,andexpireon September1,2015.

Economics
Signing Bonus
EachemployeewhoisactivelyatworkonSeptember1,2012,willreceiveacashpaymentof $2,000paidbyOctober15,2012onratificationoftheProposedAgreement. EmployeeswhoareoffworkandreceivingSicknessandAccidentorWorkerscompensation benefits(forlessthantwoyearsasofSeptember1,2012),willreceivethesigningbonusupon theirreturntowork,providedthattheyreturntoactiveworkonorbeforeSeptember1,2013. EmployeeswillreceivethesigningbonusiftheyareonFLMALeaveoronmilitaryleaveof absencefortrainingordutyintheuniformedservices(whichincludetheArmy,Navy,Marine Corps,AirForce,CoastGuard,andPublicHealthServicecommissionedcorps,aswellasthe reservecomponentsofeachoftheseservices),iftheyreturntoworkinatimelyfashionupon theexpirationoftheirapprovedleave.ProbationaryEmployeesasofSeptember1,2012,will receivethesigningbonusupontheirsuccessfulcompletionoftheirprobationaryperiod. Thesigningbonuswillnotbeusedinthecalculationofanyotherpay,allowanceorbenefit,but willbesubjecttoallrequiredtaxwithholdingandUniondues.Thebonusmaybedeferredto your401(k)account.

Wages and Lump Sum Bonus Payments

TheProposedAgreementincreaseswagesbyanaverageof$1.04perhourforallpaygrades overtheproposedterm.Thisrepresentsanaverageannualwageincreaseof$0.35perhouror 1.5%overthethreeyearterm.Thefullstandardhourlywageratetablesareshownattheend ofthissummary. Thewageincreasesandbonuspaymentsareasfollows: September1,2012: September1,2013: April1,2014: January1,2015: $2,000signingbonustoallactiveemployees, 2.0%generalincreaseforalllaborgrades(averageof$0.46/hour), $500lumpsumtoallactiveemployees,and 2.5%generalincreaseforalllaborgrades(averageof$0.58/hour).

The$500lumpsumpaymentwillbepaidtoeachemployeewhoisactivelyatworkonApril1, 2014(includingvacation).EmployeeswhoareabsentfromworkonApril1,2014andreceiving sickness&accidentorworkerscompensationbenefitswillreceivethesigningbonusupontheir returntowork,providedthattheyreturntoactiveworkonorbeforeApril1,2015.

September2012

U.S. Steel Master Agreement Settlement Summary

ProbationaryemployeesandemployeesonFLMAoronmilitaryleaveofabsenceareeligible forthelumpsumbonusinthesamemannerasthesigningbonus.

New Money Over Term

Overitsterm,theProposedAgreementcontainsover$5,200innewmoneybasedona40hour week,notcountingholiday,overtime,otherwagepremiumsortheprofitsharingpayments.

New Money under the Proposed Agreement

September 1, 2012 through August 31, 2015
New Money Per Week (at 40 hours per week)
SigningBonus=$2,000/17weeks=$118 [Effective9/1/13]46x40=$18 46x40=$18 LumpSumBonus=$500/52weeks=$10 [Effective1/1/15]$1.04x40=$43

Year
2012 2013 2014 2015 Total

New Money Per Year (at 2,080 hours)

=$2,000 46x693hours=$319 46x2,080hours=$956 =$500 $1.04x1,387hours=$1,442 $5,217

Profit Sharing
TheProfitSharingPlanoutlinedinthe2008LaborAgreementwillcontinueforthelasttwo quartersof2012. EffectiveJanuary1,2013,theProfitSharingPlanwillexcludethefinancialresultsofU.S.Steel KosiceandU.S.SteelCanada.GiventhecurrentsituationandprojectionsabouttheEuropean economy,wefeltitbesttoremoveKosicefromtheProfitSharingPlan.Weanticipatethatthe exclusionofU.S.SteelKosicefromthecalculationofprofitpertonshippedwillincreaseprofit sharingpaymentstoUSWmembersby$0.02to$0.16perhourperyear. ThedefinitionofprofitisalsoupdatedtoreflecttheexpirationoftheProfitOffsetpayments underthe2008RetireeHealthProgram.

Supplemental Unemployment Benefits

TherearenochangesinSUBbenefits.TheUnionattemptedtoresolvetheongoingdisputeover themaximumdurationofSUBbenefitsandwhetherthosebenefitscompletelyrechargefor employeeslaidoffmorethanonceduringthetermoftheAgreement.TheCompanyofferedto resolvetheissue,butonlyiftheUnionagreedtoraisethethresholdforSUBeligibilityfromtwo tofiveyearsandotherconcessions.TheUnionrefusedandtheSUBdisputewillbesubmitted toarbitrationforresolution.

September2012

U.S. Steel Master Agreement Settlement Summary

Pensions
U.S. Steel & Carnegie Pension Fund
ThemultipliersandearningsformulaundertheU.S.SteelandCarnegiePensionFundare unchanged.

Steelworkers Pension Trust

ThecontributiontotheSteelworkersPensionTrustremainsunchangedat$2.65per ContributoryHour.

Retirement Payment for Former Employees of National Steel

The$7,500paymentatretirementtoformerNationalSteelandNSPCemployeesisrenewed. EmployeesareeligibleiftheyformerlyworkedforNationalSteelorNationalSteelPellet Company: (a) areatleastage57asofSeptember1,2012, (b) retireafterattainingage60,and (c) retirebeforetheendofthetermofthe2012BasicLaborAgreement.

Cash Payments to Surviving Spouses Continued

Thepaymentstopre1974andpost1974survivingspousesarecontinuedforthetermofthe ProposedAgreement.Theannualpaymentsareshownbelow:

Payment Dates
August1,2013 August1,2014 August1,2015

Pre-1974
$1,100 $1,100 $1,100

Post-1974
$800 $800 $800

Pre1974SurvivingSpousesincludethespouse(excludingthosewhoareeligiblefora SurvivingSpousesBenefit)of:(1)apensionerwhohadatleast15yearsofcontinuousservice andwhoretired(onotherthanaDeferredVestedpension)beforeJuly31,1974,anddied,or(2) anemployeewhohadatleast15yearsofcontinuousserviceanddiedbeforeJuly31,1974. Post1974SurvivingSpousesincludethespousewhoisreceivingaSurvivingSpousesBenefit underthePensionAgreementof:(1)apensionerwhohadatleast15yearsofcontinuousservice andwhoretired(onotherthanaDeferredVestedpension)beforeJanuary31,1994,anddied,or (2)anemployeewhohadatleast15yearsofcontinuousserviceanddiedbeforeJanuary31, 1994.

Additional Payments to Surviving Spouses and Pensioners

Tohelpretireesoffsettherisingcostoflivingandotherretireeexpenses,theUnionproposed andwonaseriesoflumpsumpaymentstoPensionersandSurvivingSpousesreceiving pensionsoflessthan$1,500permonth.

September2012

U.S. Steel Master Agreement Settlement Summary

ThesepaymentswillbemadetoallPensioners(andtheireligibleSurvivingSpouses)who retiredonotherthanadeferredvestedpensionandsurvivingspouses(inotherwordsnormal, 62/15,30year,60/15,PermanentIncapacity,70/80and/orRuleof65retirement)andare receivingabenefitoflessthan$1,500permonth.AneligibleSurvivingSpousemayreceive thesepaymentsaswellasthe$1,100/$800paymentstocertainPreandPost1974Surviving Spousesasdescribedabove.

Annual Payments to USS Pensioners and Surviving Spouses

Payment Dates
August1,2013 August1,2014 August1,2015 Eligibilityforthesepaymentswillbebasedontheamountofthemonthlypensionbenefit includingmonthlysupplements,reductionsforsurvivingspousecoverage,butexcludingthe amountofdeductionsforretireehealthcarepremiums.

Monthly Pension Benefit At Least $1,000 But Less Less Than $1,000 Than $1,500
$600 $600 $600 $500 $500 $500

Payments to Surviving Spouses of Former National Steel Employees

PaymentswillalsobemadetotheSurvivingSpousesofemployeeswhoformerlyworkedfor NationalSteelorNationalSteelPelletCompany,who:(1)workedforU.S.Steelunderthe2003 SettlementAgreement;(2)retiredhavingaccruedatleasttwoyearsofcontinuousservicewith theCompanyandatleastfifteenyearsofcombinedcontinuousservice;(3)waseligiblefora NormalRetirement,unreducedEarlyRetirementBenefit,orDisabilityBenefitfromthe SteelworkersPensionTrust;and(4)diedasofthepaymentdate.Thesesurvivingspouseswill receiveannuallumpsumpaymentof$600onAugust1,2013,2014and2015.

Active Insurance Benefits

Medical Benefits
AtbargainingtablesthroughouttheUnitedStates,healthcareisamongthemostdifficultissue facingnegotiatorsandUnionmembers.Moreandmoreemployersaredemandingincreasesin deductibles,coinsuranceandemployeepremiumsharing,whichshiftcoststoemployees.Your BargainingCommitteetookthepositionthatactivehealthcareisnottheproblemfacingthe Companyandbenefitcutswouldnotrestorecustomerdemandorprices. TheUnionhelditsgroundandwassuccessfulinavoidinganycutsinactivehealthcarebenefits oremployeehealthcarepremiums.TheUnionalsosoughttosolveseveralbenefits administrationissuesthathavearisenoverthelastfouryears.

September2012

U.S. Steel Master Agreement Settlement Summary Dependent Eligibility Expanded

TheProposedAgreementexpandsthedefinitionofdependentseligibleforhealthcarecoverage tocomplywiththePatientProtectionandAffordableCareAct.TheU.S.Steelhealthplanwillnow coverchildrenuntiltheyreachage26iftheyareyournaturalchildren,legallyadoptedchild,or stepsonorstepdaughter. ThePlanwillalsocoveranunmarriedchildwhoispermanentlyresidinginyourhousehold andbeingsupportedprincipallybyyou,ifthechildisyourgrandchildoryouarethechilds legalguardian,ifthechildisunder21yearsofage,afulltimestudentordisabled.

Preventive Care/Wellness
ThedefinitionofpreventivecareisexpandedinthePIBtoprovidegreaterclarityregarding coveredservicesandscreening.Thefollowingserviceswillbecoveredat100%andnotsubject toadeductibleorcopayment: routinephysicalexaminationsforadults adultimmunizations diagnosticservicesandprocedures routinegynecologicalexaminationsandpaptest mammographicscreening pediatricImmunizations wellbabycare/pediatriccare colorectalcancerscreenings

Prescription Drugs
Theprescriptiondrugbenefitsareunchanged.

Mental Health and Substance Abuse Treatment

Tocomplywithrecentchangesinfederallaw,coverageformentalhealthandsubstanceabuse treatmentwillbemodifiedtoeliminatefrequencylimitationsondoctorsofficevisitsformental healthandsubstanceabusetreatment.Thelevelofoutofnetworkcoverageforinpatient mentalhealthserviceswillbeincreasedfrom50%to70%afterthedeductible.

Dental and Vision Care Benefits

TheCompanyinsistedthatinexchangeforlanguagesolutionstoseveralbenefitsadministrative issues,theUnionagreetoareductionindentalreimbursementratesforoutofnetwork services.TheUnionremindedtheCompanyofpastproblemswiththedentalnetwork, especiallyinruralareasandamongdentalspecialists.Intheend,theUnionprevailed.Dental andvisioncarebenefitsareunchanged.

Life Insurance and AD&D

Theamountofbasiclifeinsuranceforactiveemployeesandretireesisunchanged.

Sickness and Accident Benefits

Duringthesenegotiations,theUnionBenefitsCommitteefoughthardtoresolveseveral situationsinwhichU.S.SteelwasimproperlydenyingeligibleemployeesweeklyS&Abenefits. September2012 5

U.S. Steel Master Agreement Settlement Summary

TheUnionsecuredprotectionsthatyourS&Abenefitswillcontinuetobepaidifyourphysician releasesyoutoreturntoworkandtheCompanyphysiciandisagrees.YourS&Abenefitswill alsocontinuetobepaidifyourphysicianortheCompanyphysicianindicatesthatyoumay returntoworkwithrestrictions,buttheCompanydoesnothaveapositionavailableforyou withsuchworkrestrictions.Andifthereisadisagreementonyourworkrestrictions,theissue maybesubmittedtoaneutralthirdphysicianforresolution. TheUnionwasalsosuccessfulinaddressingtheproblemoftheS&Aeligibilitybeyond34 weeksforemployeesawaitingaresponsetoapplicationsforSocialSecurityDisabilitybenefits. Inthepast,U.S.SteelhassuspendedweeklyS&Abenefitsfortheseemployeesafter34weeks eventhoughtheyhavecompliedwithalltherulesundertheS&Aprogram. UndertheProposedAgreement,effectivein2013,ifyouhaveotherwiseappliedforaSocial Securitydisabilitybenefitandaresimplyawaitingabenefitawardordenialletter,youwill receivebenefitsequalto50%oftheamountofthefullweeklySicknessandAccidentBenefits foranyperiodofeligibilitybetween34weeksand52weeksWhenyoureceiveaSocialSecurity disabilitybenefitawardordenial,yourS&Abenefitwillberestored(orsubjecttooffsetifyou areawardedaSocialSecuritydisabilitybenefit).

Retiree Insurance Benefits

Retiree Health Care Cap
Retireehealthcarebenefitswasthemostdifficultandcontentiousissueinthesenegotiations. Forweeksandweeks,theUnionandCompanywrestledwithhowtoprovideretireehealth carebenefitsinamannerthatwasaffordablefortheCompanyanditsretirees. The2003LaborAgreementbetweenU.S.SteelandtheUnionlimitedtheCompanys contributionforretireehealthcaretotheamountitpaidinbenefitsin2006.Theretireecostcap wasfirstnegotiatedasawaytolowertheCompanyslongtermobligationforretireehealth care,improvingitsabilitytoborrowmoneyandinvestinitsplants,whilepreservingbenefits. However,sincethattime,healthcarecostshaveincreasedandtheCompanysprofitabilityhas declined. TheCompanytookthepositionthatretireeswouldberequiredtopaythecostofallhealthcare costincreases.TheeffectofmovingthecostcapwouldrequiretheCompanytoabsorbthe additionalamountofuncappedobligationofupto$1.1billion.Bycomparison,themarket valueofalltheCompanysstockis$2.8billion. TheUnionestimatedthatiftheissueremainedunresolved,anonMedicareretireeandspouse wouldbeforcedtopayover$500permonthinjustfiveyearsandasmuchas$1,000permonth injusteightyears. U.S.Steelenteredthebargainingwithaproposaltodismantlethecurrentretireehealthcare programandsend40,000Medicareeligibleretireesandsurvivingspousesintothecommercial markettopurchasehealthcareanddrugbenefitsanddumpits8,000nonMedicareeligible pensionersandsurvivingspousesontotheasyetunprovenstatehealthcarepurchasing exchangestobecreatedin2014underthePatientProtectionandAffordableCareAct.

September2012

U.S. Steel Master Agreement Settlement Summary

TheCompanysapproachwouldhavesurrenderedtheadvantagesofgrouppurchasingpower andcommonadministration,squanderedmoneyoninsurancecommissionsandeliminatedthe abilityoftheUniontohelpensureallretiredU.S.Steelemployeesreceiveaffordable,high qualityhealthcarebenefits. Afterweeksofdiscussions,theUnionultimatelyconcludedthattheCompanywouldnotadjust thecapwithoutalongandbruisinglabordispute.Insteadofahighstakes,allornothing strategy,theUnionsoughtanalternativeapproachthatwouldallowtheCompanytoretainits costcapwithoutrequiringretireestobearthebruntofhealthcareinflation. TheProposedAgreementprotectsretireehealthcarebenefitsthroughtheuseofthe$70million remainingfromthe2008FlatPremiumAdjustmentaccounttopaycostsabovethecapduring thetermoftheagreement.Unfortunatelythisalonewasnotenough.TheProposedAgreement alsoincludeschangesinthehealthcareplandesignandincreasedretireehealthcare contributions.TheUnionbargainedaseriesofcashpaymentsthatcanhelpoffsettheimpactof theincreases.

Changes in the PPO Medical Benefit Plan for Non-Medicare Eligible Retirees
TheProposedAgreementmodifiesthelevelofbenefitsunderthePPOMedicalBenefitPlanin theRetireeHealthProgramfornonMedicareeligibleretirees,effectiveJanuary1,2013,as showninthetableonthefollowingpage.

Changes in the Medicare Carve-Out Plan

TheProposedAgreementreplacestheMedicareCarveOutPlanintheRetireeHealthProgram withaMedicareAdvantagePlanadministeredbyHighmarkBlueCrossBlueShield,effective January1,2013.EnrollmentinthePlan,calledHighmarkFreedomBlue,willbeautomatic. TheFreedomBlueMedicareAdvantagePlanplansprovidebenefitscoveredundertraditional Medicare,andcertainenhancedbenefits.ThePlanallowsyoutoseedoctors,specialistsand hospitalsofyourchoice,insideandoutsidethenetwork,withoutreferrals.Anditusesthe BCBSnationalPPOnetwork.IfyougotoMedicareeligibleprovidersorhospitalsinoneofthe fewcountiesthatarenotconsideredpartoftheBluetravelprogram,eligibleservicesare coveredattheinnetworklevel. TheCompanywillsendretireesinformationonthechangesintheretireehealthcareplan, followedbydetailedmaterialsonhowtoenrollfortheupcomingyear,premiumsand authorizationforms.Itisimportantthatretireesandtheirfamiliesreadthesematerialscarefully andactbythedeadlinesdescribed.

Prescription Drug Plan

ThePrescriptionDrugPlanundertheRetireeHealthProgramwillbemodifiedtoencourage thepurchaseof90dayprescriptionsthroughmailorderinsteadofataretailpharmacy. EffectiveJanuary1,2013,ifaretireepurchasesaprescriptiongreaterthan30daysupply,s/he willberesponsibleforthelesseroftheapplicableretailpercentcoinsurance,oruptothree maximumcopayments(insteadoftheapplicableflatdollarcopaymaximum).Second,thecost ofSpecialtyDrugsfilledatRetail(maximum30daysupply)shallbe40%ofthecostofthedrug uptoa$100maximum,insteadofatzerodollarzerocopayforgenericand$20forFormulary BrandName.SpecialtyDrugsfilledusingtheCuraScriptHomeDeliveryPharmacywillremain atzerodollarzerocopayforgenericand$20forFormularyBrandName(fora30daysupply). September2012 7

U.S. Steel Master Agreement Settlement Summary

Summary of PPO Medical Benefit Plan

Non-Medicare Eligible Retirees
In-Network Benefits
Deductible,Individual Deductible,Family CompanyPaymentLevel/ Coinsurance Individual,OutofPocketMax. Family,OutofPocketMax. LifetimeMaximum

Out-of-Network

PhysicianOfficeVisits Hospital,Inpatient Hospital,Outpatient EmergencyRoom,Physician EmergencyRoom,Facility Medical/SurgicalExpenses (exceptofficevisits) DiagnosticServices DurableMedicalEquipment PhysicalTherapy

$0 $300 $0 $600 80%untiloutofpocket 70%(afterdeductible)until maximumismet, outofpocketmaximumis then100% met,then100% $1,500 $2,000 $3,000 $4,000 $5,000,000 Combinesbothinandoutofnetworkbenefits CombinedmaximumforpreMedicareandMedicare 100%after$25Copay 70%afterDeductible 80% 70%afterdeductible 80% 70%afterdeductible 100% 70%afterdeductible 100%after$40copayment(waivedifadmitted) 80% 70%afterdeductible 80% 70%afterdeductible 80% 70%afterdeductible 100%after$25copay 70%afterdeductible Combinedlimit:60visitspercalendaryear combinedwithoccupationaltherapy 100%after$25copay 70%afterdeductible Combinedlimit:18visitspercalendaryear 100% 100%after$25copay 70%afterdeductible 100%after$25copay 70%afterdeductible 100% 70%afterdeductible 100%.Limit:$1,500perearper36monthperiod PerformedbyMember

Spinal Manipulations Ambulance PreventiveCare,Adult Routinephysicalexams Routinegynecologicalexams Mammograms,asrequired HearingAids/Exams PrecertificationRequirement

Notes: Reimbursementbasedonpercentageofallowablecharge. Ambulanceservicesarebasedontheprovidersactualcharge,beforeapplyingdeductibleand coinsurance. Annualoutofpocketmaximumincludesdeductible,copaymentsandcoinsuranceamountsfor coveredmedicalexpenses(exceptformentalhealthandsubstanceabuse)eachcalendaryear, andexcludesprescriptiondrugsandamountsabovetheallowablecharge.

September2012

U.S. Steel Master Agreement Settlement Summary

Summary of USS Freedom Blue Medicare Advantage Plan

Medicare-Eligible Retirees, Surviving Spouses and Dependents
In-Network
$0 80% 20% 70% 30%

Benefits
PlanDeductible PlanReimbursementLevel RetireeCoinsurance LifetimeMaximum InpatientHospitalCare SkilledNursingFacilityCare 100 days /Medicare Benefit period PrimaryCarePhysicianor SpecialistOfficeVisit EmergencyRoom UrgentlyNeededCare OutpatientSurgery DiagnosticLabandXRay DurableMedicalEquipment DiabeticTestingSupplies HomeHealthCare PhysicalSpeechand OccupationalTherapy Ambulance MedicarePartBDrugs AnnualPhysicalExam PreventiveServices AnnualMammogram AnnualRoutineEyeExam RoutineVisionEyewear

Out-of-Network

Unlimited 80%(retireepays20%) 70%(retireepays30%) 80%(retireepays20%) 70%(retireepays30%) Days21100 Days21100 $25pervisit 70%(retireepays30%) $40pervisit $40pervisit 80%(retireepays20%) 80%(retireepays20%) 80%(retireepays20%) 80%(retireepays20%) 80%(retireepays20%) $25pervisit $40pervisit $40pervisit 70%(retireepays30%) 70%(retireepays30%) 50%(retireepays50%) 50%(retireepays50%) 70%(retireepays30%) 70%(retireepays30%)

AnnualHearingExam HearingAids

80%(retireepays20%) 70%(retireepays30%) 80%(retireepays20%) 80%(retireepays20%) Coveredat100%.Officevisit 70%(retireepays30%) costsharingmayapply Coveredat100% Coveredat100% $25pervisit 70%(retireepays30%) 100%coverageforstandard $100benefitmaximumfor eyeglassframes,lensesor eyewear contact.$100/$100allowance forspecialtyframesand contacts. $25pervisit 70%(retireepays30%) Coveredupto$1,500perearevery5years

Note: Annualoutofpocketmaximumincludesdeductible,copaymentsandcoinsurance amountsforcoveredmedicalexpenseseachcalendaryear,andexcludesprescription drugsandamountsabovetheallowablecharge.

September2012

U.S. Steel Master Agreement Settlement Summary Participant Premiums

EffectiveJanuary1,2013,themonthlyhealthcarepremiumsforretireesandsurvivingspouses andtheirdependentswillincreaseasshownthefollowingtable.Thesepremiumsareeffective forthedurationoftheLaborAgreement.

Monthly Retiree Health Care Premiums

Per Retiree, Spouse or Surviving Spouse
Current
2009-2012 Medical Drug Total

Medicare-Eligible Participants
PensionerorSpouse SurvivingSpouse PensionerorSpouse SurvivingSpouse
Note:

Non-Medicare Eligible Participants

$30 $20 $90 $75

$45 $30

$75 $50

Change 2013-2015 Medical Drug Total Medical Drug Total $25 $70 $95 $5 +$25 +$20 $25 $70 $95 +$5 +$40 +$45

Proposed

$60 $50

$150 $125

$120 $120

$70 $70

$190 $190

+$30 +$45

+$10 +$20

+$40 +$65

Monthlyratesareestablishedonaperpersonbasisandincludecoverageforeligibledependent children,ifany.

Annual Premium Increases and Lump Sum Payments

2012-2015

Premium Increase Medical and Drug Coverage

Medicare-Eligible Participants
PensionerorSpouse SurvivingSpouse PensionerorSpouse SurvivingSpouse +$240 +$540 +$480 +$780

Annual Cash Payments

If Monthly Pension is Under $1,000
$600 $600

If Monthly Pension $1,000 to $1,499

$500 $500

Non-Medicare Eligible Participants

$600 $600

$500 $500

Note:

Doesnotincludethe$1,100or$800annualpaymentstocertainSurvivingSpousesofPre1974 andPost1974pensioners. LumpsumpaymentispayableperPensionerorSurvivingSpouse,notpercoveredadult participatingintheUSSRetireeHealthProgram.

Health Care Plans for National Steel Retirees

TheProposedAgreementdoesnotmodifyretireehealthcareorprescriptiondrugbenefitsfor employeeswhoretiredfromNationalSteelorNationalSteelPelletCompanyandarecovered undertheNBTVEBAortheNationalSteelVEBA.

10

September2012

U.S. Steel Master Agreement Settlement Summary

Language Issues
Investment Commitment
TheProposedAgreementrenewstheCompanyscommitmenttomakethecapitalexpenditures requiredtomakethefacilitiescoveredbythisAgreementworldclassandtomaintainthemas suchwithacommitmentof$1.5billionoverthetermofthelaboragreement.

Employment Security
Thepartieshaveincludedaprovisionwheretheycanagreetoa32hourweekforashortperiod oftimeinordertoavoidlayoffsaspartofanylayoffminimizationplan.

Workplace Procedures
Wemadeimprovementsinthefollowingareasofthebasiclaboragreementlanguage: TheMemorandumofAgreementConcerningtheApplicationofAppendixB5[56/60 hourovertimework)isretainedandprovisionsmadeforthepartiestoreducethat commitmentbeforelayingoffmaintenanceemployees Animprovementinthecalculationofhourstocompleteprobation. Improvementsmadetotheminiarbitrationprocedure Additionalarbitratorswillbenamedtoourstandingpaneltoinsurethetimelyhearing ofGrievances ClarificationonourcurrentUnderstandingonAlternativeWorkSchedules AnImprovementtoourbereavementleaveprovisionsrecognizingtheincreaseinuseof memorialservicesinplaceoftraditionalfuneralsandexpandingeveryonesabilityto makeeffectiveuseoftheirallotteddaysoffduringthoseperiods.

Workforce Training Program

Wehaveexpandedtheabilityforthelocalpartiestodevelopalocaloptiontofocustheir trainingplanstobettermeetlocalstaffingneedsthroughbeingabletoconcentrate trainingprogramsinamoretargetedmanner.

Wages and Job Descriptions

QualifiedEmployeeswhoarepaidasMaintenanceTechniciansorOperatingTechnician IIElectricalHybridsandwhopasstheSystemsRepairmantestwillbepaidLaborGrade 5[AppendixA5] EmployeesperformingfulltimeMasonandCarpenterJobswillbepaidatthelabor grade3

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U.S. Steel Master Agreement Settlement Summary

Health, Safety and the Environment Issues

Theproposedagreementincludesanumberofgainsthatwillmakeourworkplacessaferand morejust.Themostimportantisintheareaofdiscipline.Inthepast,ourmemberscouldbe firedforanysafetyviolation,includingminorlapsesinconcentrationandmomentary carelessness.Thenewcontractwouldrequirethecompanytoapplyprogressivedisciplineinall butthemostextremecasesthoseinvolvingmalice,recklessnessorknowingdefianceofan establishedandproperlycommunicatedsafetyrule. Inaddition,theagreementimprovesthelanguageonprotectiveequipment,givestheunion newrightsintheareaofergonomics,andtightenstheprovisionsrestrictingdrugtesting.New fulltimecompanypaidunionsafetyrepresentativeswereaddedatseveralplants;severalO&T unitsweregivenadditionalcompanypaidhoursforsafetyandhealthwork.Aprocesswas establishedforimprovingthesafetyofrailoperations. Contractnegotiationsdealwithmorethanthemasteragreement;theyalsoofferthe opportunitytosolvesafetyproblemsandsettlesafetydisputes.Thesafetyandhealth negotiatingcommitteewasabletoresolvemorethantwodozenlocalandnoncontractual issues,rangingfromadditionalautomaticexternaldefibrillationunits,toreducinglevelsof hexavalentchromium,togasrescue,toendingadangerouspracticeforinitiatingacontinuous cast.

O&T Issues
WorkforceProductivity[AssignmentpreferencesforSalariedOfficeandTechnicalEmployees]

Plant Protection Issues

SecurityJobDescriptions StructureofPlantProtectionFunctions MemorandumofUnderstandingConcerningPlantProtectionattheMonValleyWorks ChangestoTraining&CertificationRequirements[PlantProtection] CrewLeaders

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U.S. Steel Master Agreement Settlement Summary

Production and Maintenance Employees

Proposed Agreement Labor Grade 1 2 3 4 5 Job Title Utility Person Utility Technician Operating Technician I Operating Technician II Maintenance Technician Senior Operating Technician Current 9/1/11 $19.56 $21.41 $23.55 $24.78 $24.78 $26.32 Effective 9/1/13 $19.95 $21.84 $24.02 $25.28 $25.28 $26.85 Effective 1/1/15 $20.45 $22.39 $24.62 $25.91 $25.91 $27.52 Increase Over Term $0.89 $0.98 $1.07 $1.13 $1.13 $1.20

Base Rates of Pay

Standard Biweekly Salary Rates of Pay

Office & Technical Employees
Current 9/1/11 $1,564.80 $1,712.00 $1,884.80 $1,982.40 $2,105.60 Proposed Agreement Labor Grade 1 2 3 4 5 Job Title Clerical I Clerical II Analytical/Technical I Analytical/Technical II Analytical/Technical III Effective 9/1/13 $1,596.00 $1,747.20 $1,921.60 $2,022.40 $2,148.00 Effective 1/1/15 $1,636.00 $1,791.20 $1,969.60 $2,072.80 $2,201.60 Increase Over Term $71.20 $79.20 $85.60 $90.40 $96.00

Standard Biweekly Salary Rates of Pay

Plant Protection Employees
Current 9/1/11 $1,564.80 $1,712.00 $1,884.80 $1,982.40 $2,105.60 Proposed Agreement Labor Grade 1 2 3 4 5 Job Title Security I Security II Security III Security IV Security V Effective 9/1/13 $1,596.00 $1,747.20 $1,921.60 $2,022.40 $2,148.00 Effective 1/1/15 $1,636.00 $1,791.20 $1,969.60 $2,072.80 $2,201.60 Increase Over Term $71.20 $79.20 $85.60 $90.40 $96.00

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