The issue of a guaranteed workforce continues to be a major hurdle in ending the nearly 3-month old lockout of AK Steel's Middletown Works employees.
After a two-hour bargaining session Monday, the Armco Employees Independent Federation (AEIF), representing the locked out Middletown employees, stated on its hot line that AK's latest contract proposal called for the immediate elimination of 300 jobs.
However, AK spokesman Alan McCoy denied this, telling press Tuesday, "We did not make a proposal to cut 300 jobs . . . They've came up with this number."
Brian Daley, president of the AEIF, confirmed later Tuesday that while the company did not specifically state that it would cut 300 jobs, the company did present a list of jobs that it would like to eliminate.
The company has expressed that in order to maintain a competitive edge in the market, it must get a new era contract that does not guarantee the number of hourly maintenance and
production workers that will be employed at the plant.
According to the union, other changes in AK's contract proposal, which the company presented Monday in response to the AEIF's May 3 proposal, included improvements in certain items, such as increasing the proposed employer contribution to $1.80 per hour and reducing health insurance premiums and co-pay, however, the contract was "regressive in other areas."
A press statement released by the union said that AK's contract proposed "stripping seniority rights and weakening contracting out limitations."
The union is preparing a counterproposal.
This issue began on Feb. 28th when the AEIF's contract expired, leading to the locking out of approximately 2,700 union workers. The mill has continued
production by operating with only 1,500 salaried employees and replacement workers.