USW Members Ratify Contract Extension for AK Ashland Works
07/12/2010 - Members of USW Local 1865 union ratify a three-year extension to the labor agreement covering production and maintenance employees at AK Steel's Ashland Works. The extension contains new language that increases the company’s operating flexibility as well as a wage increase for covered employees and lump sum payments over the next three years.
Members of the United Steelworkers (USW) Local 1865 union have ratified a three-year extension to a labor agreement at AK Steel's Ashland (Ky.) Works.
USW members voted last Friday, July 9 on the contract extension, which covers about 750 hourly steel production and maintenance employees. Terms of the extension are effective as of July 1, 2010.
AK Steel said the contract extension contains new language that allows the company flexibility in operating the Ashland Works to meet market conditions while committing significant capital investments in the steelmaking plant, in particular the blast furnace.
The contract extension also provides lump sum payments of $1500 to each represented employee covered by the contract in 2010, 2011 and 2012. In addition, standard hourly wage rates will be increased by $1.00 in September of 2010.
"We are pleased to have reached agreement on this extension contract, which also provides AK Steel with operational flexibility and the employees of the Ashland steel plant with a wage increase and our commitment to provide significant capital improvements," said James L. Wainscott, Chairman, President and CEO of AK Steel.
The new agreement extends the existing contract to September 1, 2013. The existing contract was scheduled to expire September 1, 2010.
Hourly production and maintenance employees of the Ashland coke plant are covered by a separate labor agreement which runs through October 31, 2011.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio, and Columbus, Ind. AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.
