“We are pleased to reach a new labor contract that is fair and equitable to both parties, and provides Cliffs a competitive cost structure for future success. This agreement once again reinforces that we have more in common with the United Steelworkers than we have differences, and we look forward to continuing our strong partnership,” Cliffs chairman and chief executive Lourenco Goncalves said in a statement.

The agreement is effective 1 October, pending ratification votes. The contract covers about 1,800 employees at Cliffs’ Tilden and Empire mines in Michigan and its United Taconite and Hibbing Taconite mines in Minnesota.

“Cliffs acknowledges the sacrifices of our members during recent tough times and now that the industry is prospering, looks to give its dedicated workforce its fair share,” said USW International President Leo W. Gerard. “Cleveland-Cliffs is a fundamental part of the steel industry, and we congratulate them for bargaining seriously to reach a fair agreement.”

The previous deal expired 1 October, and both sides came to terms before it ran out.