The United Steelworkers Local 7054 and KES Acquisition Co. (Kentucky Electric Steel) said in a press release Wednesday that they have reached agreement on a new labor contract. The new agreement was overwhelmingly ratified in a vote. Compensation increases took place December 16 with the balance of the contract effective January 1, 2013. The seven-year-plus agreement replaces the current contract which was set to expire on May 3. The contract covers the 117 hourly personnel at the mini-mill near Ashland, Kentucky.
John Scheel, the Plant Manager, said, "It is very popular these days to use labor unions as scapegoats for deficiencies in US manufacturing. Witness the many 'right-to-work' efforts underway. It has also become popular for the parties on opposite sides of issues to take extreme and unyielding positions and then to doggedly hold to them thereby fostering gridlock. All of this is wrong and counter-productive.
"Kentucky Electric Steel and the United Steelworkers of America recognize that we must work together to continue to support a business which is focused on customer service. At the same time, we realize that superior customer care and manufacturing productivity are the drivers that allow sustainability and growth of employment security, wages, and benefits."