Quick agreement — 05/09/08

Sat, May 17 2008

— The Ashland Alliance and others involved in economic development in this community should send news of the latest contract between Kentucky Electric Steel and members of Local 7504 of the United Steelworkers of America to companies they are attempting to recruit. It should dispel any remaining perceptions that this is a tough labor town.
Local 7504 and KES reached agreement on a new contract covering 118 hourly employees of the mini-mill a full five months before the old contract was to expire. In short, at a time when serious talks typically are just beginning between organized labor and management on a new contract, the new agreement was negotiated, overwhelmingly ratified by union members and signed.
The new contract calls for “substantial” annual wage increases and neither a reduction in health insurance benefits nor an increase in premiums during the life of the contract. Just as important, Carl Hall, an international representative with the Steelworkers, said the company sought no concessions.
There may have been a time when Ashland was a tough labor town, but in recent years that has been a bum rap. Labor and management routinely reach new agreements on contracts without any work stoppages.
Over the years, long-time KES employees have seen their jobs disappear with the closing of the mini-mill and then be restored with the reopening of the steel mill. At the same time, the financial condition of the Coalton mill has fluctuated with the changing of the market.
However, conditions at the mill now seem to be good, and the early signing of a new contract indicate labor relations are excellent. That’s a positive story worth telling others about.