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Arbitrator Rules Against USWA in Mansfield Dispute

8 February 2000

Arbitrator Rules Against USWA in Mansfield Dispute

    MIDDLETOWN, Ohio--Feb. 4, 2000--An arbitrator has ruled in favor of AK Steel in a dispute involving the company's right to cancel medical insurance of locked out members of the United Steelworkers of America, Local 169, in Mansfield, Ohio. In a decision handed down January 30, the arbitrator concluded that AK Steel properly cancelled the insurance effective October 1, 1999, in accordance with the Collective Bargaining Agreement, the Insurance Agreement and the Program of Insurance Benefits.
    The arbitrator agreed with AK Steel that the locked out employees are not actively working, and thus are not eligible for the company-provided benefits. Members of USWA Local 169 have been locked out of AK Steel's Mansfield Works since September 1, 1999. The lockout began after the parties failed to reach a new contract agreement. AK Steel initiated the lockout as a result of production slowdowns, vandalism and threats of violence at the plant. The company continues to operate the entire plant with salaried employees and temporary replacement employees.
    In agreement with the USWA, the company will recover the costs of the insurance, which had been temporarily reinstated, for the period between and including December 17, 1999 to January 30, 2000 directly from the locked out employees.
    The company estimates the total cost to the employees to be $301,000, or approximately $620 per employee. All insurance benefits remain cancelled as of January 30, 2000 for locked out members of USWA Local 169 in Mansfield.