AK Steel ordered to recall laid-off workers

AK Steel ordered to recall laid-off workers

An arbitrator has ordered AK Steel to rehire 107 workers who were laid off from its Middletown plant in Southern Ohio last year. In order to save money, AK Steel decided last year to suspend a provision in its contract between the company and union that stipulated it must retain a minimum workforce of 3'114. “While we are disappointed the arbitrator's ruling did not give us a complete victory on this important labor cost issue, it does vindicate our position that we need to operate our facilities with a smaller work force,” AK's president and CEO James Wainscott said. Although AK does not have to maintain a full complement of workers, it will be required to open a fund which will be used at company and union discretion. The amount of the fund was not made immediately known. AK Steel produces flat-rolled carbon, stainless and electrical steel, and tubular steel products for the automotive, appliance, construction and manufacturing markets. It has assets in Ohio, Indiana, Pennsylvania, and Kentucky.