Arbitrator: AK Steel can’t shut down plant

The proposed move in Ashland, Ky., apparently violates union contract, according to arbitrator.

While union officials at Middletown Works are celebrating the return of many laid-off workers due to an increase in orders, uncertainty swirls around how an arbitrator’s order that AK Steel Corp. abandon plans to idle its Ashland plant could impact local operations.

An independent arbitrator has ordered the West Chester Twp.-based steelmaker to abandon plans to shut down its Ashland Works plant in Kentucky, saying such a move would violate a contract provision with the United Steelworkers.

In May, the company said it would likely idle Ashland beginning late in July or early August and continue that shutdown possibly through the remainder of 2009. AK officials said it would bring the Middletown blast furnace back up, favoring that plant due to its hot strip mill, which Ashland does not have, and its ability to produce the full range of slab widths required by AK customers.

The Middletown blast furnace started back up July 8, and since then AK has brought back many of the workers on layoff. Most recently, a group of 57 was announced Wednesday, July 15, said Neil Douglas, vice president of the International Association of Machinists and Aerospace Workers Local Lodge 1943, which represents hourly workers at Middletown Works.

The latest callback was attributed to a slight increase in orders. About 60 to 80 workers are still on layoff, and Douglas said they are not certain how the arbitration award may affect staffing levels.

“We are really concerned with the outcome for our members and keeping the Middletown Works going,” he said. “We are definitely going to be discussing it with the company and internally.”

The Machinists’ contract with AK Steel does not include a provision like the one the company has with the USW at Ashland that requires a “full capacity” commitment to the Ashland bargaining unit except when there is no demand for products that plant produces. However, the local union did negotiate that members who were employed before the lockout are guaranteed 40 hours a week in exchange for provisions allowing AK to contract out certain work, Douglas said.

AK Steel spokesman Alan McCoy said the company continues to evaluate the decision and has no comment on the issue.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

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