May 10, 2006 — Members of the United Auto Workers (UAW), Local 4104, have overwhelmingly ratified a new six-year labor agreement covering about 200 hourly production and maintenance employees at AK Steel's Zanesville Works. AK Steel said UAW officials informed the company Tuesday afternoon that the new contract had passed by a vote of 130 to 45.

AK Steel said the new Zanesville contract includes workforce restructuring to 5 job classes with no workforce size quotas or guarantees. In addition to the inclusion of wage increases, the new contract locks and freezes traditional pensions, and converts the company contribution to a per-hour basis. The new contract also includes current and future retiree health care cost sharing.

"This new-era agreement will serve our company and its employees well," said James L. Wainscott, Chairman, President and CEO of AK Steel. "I commend the leadership and the members of the UAW for recognizing and addressing the very real and significant challenges AK Steel faces against competitors who have gained cost advantages through the bankruptcy process. This agreement helps address those issues while preserving good wages and benefits for our employees."

UAW members will receive a $1,000 signing bonus for ratification prior to current contract expiration.

AK Steel's Zanesville Works processes stainless and electrical sheet steel products. Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.