Four-year labor agreement for Cleveland-Cliffs' workers

Four-year labor agreement for Cleveland-Cliffs’ workers

According to the statement released by North America's largest iron ore pellets producer Cleveland-Cliffs, the union representing workers at Empire and Tilden mines in Michigan and Hibbing Taconite and United Taconite mines in Minnesota have recently ratified the labor agreement, which will be effective for four years. The new labor agreement covers wage increase of 9% over the next four years. Moreover, the company will put over $220 million into pension plans and retiree health care accounts during the same period. Under the scope of the agreement, certain work rule modifications have been implemented, which is expected to improve productivity at the mines. Officials of Cleveland-Cliffs stated that the new agreement will secure the future of the company and will enable the company to improve its cost structure. All these developments together with the strong demand in the market are expected to make the company more competitive.