Cleveland-Cliffs Inc. is returning to the bargaining table with the United Steelworkers of America (USWA). The parties will work toward the goal of achieving a labor agreement by July 31 that will ensure the long-term competitiveness of the company while giving employees significant wage increases.

Cliffs will propose productivity improvements and new measures to help limit the increase in future healthcare costs that have risen at double-digit rates throughout the country during the past four years. Similar proposals have already been approved by the USWA in its contracts with U.S. Steel, including the Minntac and Keetac mines, which are Cliffs' competitors.

John S. Brinzo, Chairman and CEO, said, "We want a strong working relationship with the USWA. We have asked for nothing more than the economics of the contract that the union already has signed with our chief domestic iron ore competitor, U.S. Steel. The time to work together is now."

At the same time, Cliffs has stated it could not afford to shut down in the event that an agreement is not reached, as the company has sales contracts to honor. The financial effect of being totally shut down would endanger the long-term survival of those contracts, thousands of jobs and the company.

Cliffs has made important strides during the past few years that enabled it to weather the economic storm in the steel industry and position itself for growth now that market conditions have improved. The company has played a major role in consolidating the iron ore industry, having bought and restarted a bankrupt and idled mine and re-establishing several hundred USWA jobs. Cliffs expressed its desire to negotiate a new collective bargaining agreement with the USWA prior to July 31. The company has been dedicated to doing just that for many months.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs is the largest producer of iron ore pellets in North America, selling the majority of its pellets to integrated steel companies in North America and Canada. The company operates six iron ore mines in Michigan, Minnesota and Eastern Canada.