Labor Agreements (Notes)

6 Months Ended

Jun. 30, 2019

Labor Agreements

On April 18, 2019, we and the United Steelworkers, Local 1865, which represents approximately 220 production employees at Ashland Works, reached an agreement to revise and extend the collective bargaining agreement. The new agreement includes terms governing the permanent closure of the facility, including benefits to employees who are terminated or transition to other AK Steel plants.

In May 2019, members of the United Steelworkers, Local 1190 ratified a three-year labor agreement covering approximately 230 production employees at Mountain State Carbon, LLC. The new agreement will be in effect through April 30, 2022.

In May 2019, members of the United Auto Workers, Local 4104, which governs approximately 105 production employees at Zanesville Works, ratified a new three-year labor agreement. The new agreement will be in effect through May 31, 2022.

In July 2019, members of the United Auto Workers, Local 3303, which governs approximately 1,200 production and maintenance employees at Butler Works, ratified a new three-year agreement. The new agreement will be in effect through June 15, 2022.

An agreement with the United Auto Workers, Local 3462, which governs approximately 305 production employees at Coshocton Works, is scheduled to expire on September 30, 2019.

An agreement with the International Association of Machinists and Aerospace Workers, Local 1943, which governs approximately 1,725 production employees at Middletown Works, is scheduled to expire on March 15, 2020.

In April 2019, the trustees for the IAM National Pension Fund (the “Fund”) voluntarily elected to place the Fund in the Red Zone for 2019 and implement a rehabilitation plan. The rehabilitation plan provides two options for a new schedule to be adopted by employers and their covered bargaining employees to both increase employer contributions and reduce certain employee pension benefits. We have agreed with the affected unions at Butler and Zanesville Works to adopt the more favorable schedule and are working with our Middletown Works IAM Local to determine the schedule to choose for that location. Depending on the schedule selected, our contributions to the Fund could increase approximately $2.0 in 2020, with gradually increasing requirements through 2031.