AK Steel Contributes $85 Million to Mansfield Economy in 1999
22 February 2000
AK Steel Contributes $85 Million to Mansfield Economy in 1999
MIDDLETOWN, Ohio--Feb. 21, 2000--Despite a labor dispute that resulted in the lockout of about 500 members of the United Steelworkers of America for a third of the year, AK Steel's Mansfield Works made a healthy contribution to the economies of Mansfield and Ohio in 1999.The beneficial economic impact of the company's Mansfield Works was worth approximately $85 million to Mansfield and Richland County in 1999. The plant generated a payroll in 1999 of nearly $45 million, purchased goods and services locally worth about $38 million and paid more than $1.7 million in various local taxes. Total taxes paid directly by AK Steel to Mansfield and Richland County in 1999 were up 12% over 1998. The direct taxes included more than $416,000 in real estate taxes, $991,000 in personal property taxes and $242,000 in sales and use taxes paid to Richland County in 1999.
The plant's operation generated more than $792,000 in payroll withholding for Mansfield's 1.75% city income tax, an increase of nearly 13% over the 1998 level.
Overall, AK Steel's Mansfield Works directly contributed about $125 million to Ohio's economy in 1999, based solely on its local payroll and goods and services purchased from other Ohio companies.
In addition to working wages, AK Steel's locked out Mansfield employees received $1.76 million in state unemployment compensation, and about $209,000 in company-provided supplemental unemployment benefits (SUB pay) in 1999. Certain of AK Steel's hourly USWA-represented employees were on layoff at the time of the lockout and had already been receiving state unemployment compensation as well as SUB pay. Employees on layoff at the time of the lockout have also continued to receive company-provided insurance. AK Steel and other companies are required to fund Ohio's unemployment compensation system, and no individual taxpayer funds are utilized for state unemployment payments. Local and state income taxes are not withheld from state unemployment compensation payments.
Union Compensation Not Taxed?
In addition, it is believed by AK Steel that certain locked out members of USWA Local 169 have received union "strike defense fund" compensation by Local 169 and/or the USWA international union in Pittsburgh. It cannot be determined by AK Steel if city, state and federal income taxes have been properly withheld by the USWA for such compensation.
Plant Has Been Productive Since Lockout
The company also reported that quality and productivity at the plant returned to normal levels in 1999 following the early weeks of the lockout. AK Steel has continued to operate the plant with salaried employees and temporary replacement workers.
In early February crews consisting of salaried employees and temporary replacement workers set a world record by casting 28 consecutive heats of stainless grade 409 steel. The sequential casts spanned more than 41 hours, included three tundish changes and totaled 3,711 tons of steel. This mark broke the previous record of 26 consecutive heats established by the Mansfield Works in January of 1998. Continuous casting experts from Voest-Alpine Industries, Inc., the Austrian manufacturer of Mansfield's continuous caster, confirmed the record-breaking stainless casting sequence.
Quality and yield levels have been maintained, and in many cases exceed the standards set prior to the lockout. Among the salaried employees working during the lockout are a number with doctorate and other advanced degrees in metallurgy from AK Steel's research center in Middletown. Many of these researchers, as well as other salaried employees with advanced degrees, wrote the quality standards implemented at the Mansfield Works that have earned the plant QS 9000 quality certification and IS0 9002 quality registration.
Plant Clean Up
Since the lockout of USWA members began last September, AK Steel's management has systematically uncovered and dismantled a number of "nests and hideaways" throughout the plant. Most of the makeshift bed areas were discovered in the hot strip mill, cold mill and electric furnace departments. One such area in a boiler house was rigged with an elaborate motion detection system that caused a phone to ring and lights to flash when someone entered the room, which was marked "Women's Room."
A hideaway in the melt shop consisted of a two-room area complete with stereo, reclining chairs, television and adjoining sleeping room. A former safety meeting room in the hot strip mill cranewright area had been converted into a dining room with grills, microwave ovens, convection ovens, refrigerators and seating for approximately 15 people. Several of the hideaways were protected by false walls and were rigged to have heating and cooling.