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AK Ordered to Keep Ashland Open

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    Posted: Jul 17 2009 at 11:42am
An independent arbitrator issued a ruling to the steelmaker saying shutting down the Ashland plant would be a violation of contract with the United Steelworkers union.

Isn't this exactly what happened to GM and the UAW? You can't force a business to produce. If there isn't demand for a product, a company must be able to control production to keep prices up and supply in check.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote John Beagle Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 11:46am

AK Steel Plans Salaried Workforce Pay Cut, Other Cost Reduction Measures

Company Reacting To Sudden Global Downturn

West Chester, OH, December 03, 2008—In response to the recent unanticipated and major downturn in the economy, which has resulted in sharply lower demand for some of the company's products, AK Steel (NYSE: AKS) announced today that it is implementing a salaried employee cost reduction program. Among the elements in the program are plans to implement an indefinite 5% pay reduction for salaried employees on January 1, 2009. The pay reduction will affect all salaried employees, including the company's CEO and all executive officers.

The company said it plans to implement other salaried workforce cost reductions, including freezing the defined benefit plan for salaried employees and replacing it with a defined contribution retirement benefit, and offering temporary incentives for voluntary retirements. The temporary retirement incentive program will end on February 6, 2009. The company said it could not rule out the need for involuntary salaried job reductions if the pay reduction and voluntary retirements do not produce adequate cost savings. The company outlined the planned measures in a December 1, 2008 letter sent to all salaried employees.

AK Steel currently employs about 1,500 salaried employees. The company's salaried employees are located in its West Chester headquarters, Middletown, Ohio research center, field sales offices and in seven steel operations in four states. The company said that about 350 salaried employees are currently eligible for a company-provided retirement benefit.

"Unfortunately, this extraordinary global economic downturn requires significant and rapid measures to reduce our costs in light of sharply lower order levels from our customers," said James L. Wainscott, chairman, president and CEO.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 11:50am
Apperantly the arbitraitor seen enough evidence that AK was not in that much trouble to have to shut down the plant. I would figure AK wanted to save a buck by diverting funds to the new coke plant here. I'm sure AK will appeal that ruling and get their way.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote John Beagle Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 11:51am
The AK Press Release says, "Company Reacting To Sudden Global Downturn"

An 'independent arbitrator' says not so fast, it says here you have to stay open.

This is foolish nonsense from a nobody trying to force socialist values on a capitalist society.

Not gonna work... wouldn't be prudent!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 2:43pm
Originally posted by John Beagle John Beagle wrote:

The AK Press Release says, "Company Reacting To Sudden Global Downturn"

An 'independent arbitrator' says not so fast, it says here you have to stay open.

This is foolish nonsense from a nobody trying to force socialist values on a capitalist society.

Not gonna work... wouldn't be prudent!
In a way I agree John,but since it involves the union it's a little different story. If your anti-union then yes,if pro-union then no. Everything has two sides.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lrisner Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 4:19pm
Originally posted by Jonathan Haller Jonathan Haller wrote:

An independent arbitrator issued a ruling to the steelmaker saying shutting down the Ashland plant would be a violation of contract with the United Steelworkers union.

Isn't this exactly what happened to GM and the UAW? You can't force a business to produce. If there isn't demand for a product, a company must be able to control production to keep prices up and supply in check.


The defining issue here is a Contract!

There is is no more" force a business to produce." than if AK were suing some Vendor who tried to raise the cost of a item AK had contracted for at a certain price. If the cost on the item went up an unforeseen amount, AK would just tell the Vendor "Tuff". The USWA is simply doing the same thing.

There is a lot of misconceptions about Unions today. I still have people ask me if I retired before the "Strike".

There has NEVER been a Strike at AK Steel's Middletown Works EVER in history!


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:19pm
"There is a lot of misconceptions about Unions today."
 
Such as.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:26pm

Irisner their was probably no strike because AK beat you to the punch.

 

Union OKs Strike at AK Steel

Posted on: Monday, 20 February 2006, 12:00 CST

MIDDLETOWN, Ohio -- The union representing 2,600 hourly workers at AK Steel's Middletown Works has overwhelmingly authorized its leaders to call a strike, less than two weeks before their contract expires.

"We have heard our members," Brian Daley, president of the Armco Employees Independent Federation, said Saturday. "We hope that AK Steel begins listening."

The agreement expires March 1. The steelmaker seeks union concessions, saying it must cut legacy costs such as pensions to be competitive.

"The company's focus remains on negotiating a new cost- competitive agreement by Feb. 28," company spokesman Barry Racey said. "Negotiations are continuing. AK Steel remains hopeful."


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Post Options Post Options   Thanks (0) Thanks(0)   Quote lrisner Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:42pm
Originally posted by Pacman Pacman wrote:

Irisner their was probably no strike because AK beat you to the punch.

 

Union OKs Strike at AK Steel

Posted on: Monday, 20 February 2006, 12:00 CST

MIDDLETOWN, Ohio -- The union representing 2,600 hourly workers at AK Steel's Middletown Works has overwhelmingly authorized its leaders to call a strike, less than two weeks before their contract expires.

"We have heard our members," Brian Daley, president of the Armco Employees Independent Federation, said Saturday. "We hope that AK Steel begins listening."

The agreement expires March 1. The steelmaker seeks union concessions, saying it must cut legacy costs such as pensions to be competitive.

"The company's focus remains on negotiating a new cost- competitive agreement by Feb. 28," company spokesman Barry Racey said. "Negotiations are continuing. AK Steel remains hopeful."





You make my point perfectly! You obviously have NO Labor Relations experience (meaning having to work with Labor. The key being "work with" rather than just dominate!) The text of your Post is nothing more than procedural doings. AK was offered EVERY opportunity to avoid their work stopping actions.

My previous statement isd STILL true!




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Post Options Post Options   Thanks (0) Thanks(0)   Quote Middletown News Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:43pm
Contracts are broken all the time and for good reason.

Enforcing a contract which causes a business to fail will result in all employees losing their job. The union mentality has always been to push hard for everything and anything they could get.

Today, modern unions are beginning to see the light. Its not what they can get, its what the company can offer and still be financially solvent.

Too bad not all unions see it this way.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote John Beagle Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:45pm
Milton Friedman makes the case that labor unions are no longer on the side of angels.

Milton says, and I paraphrase: It used to be that if you said ‘trade union’ you said good. That’s changed, and desirably it’s changed. Why, because the harm Trade Unions have done have become obvious and patent that even the most innocent and naive, well meaning people, no longer equate labor unions with labor.

Full Blog Post with Video of Milton Friedman:
http://capitalismandfriedman.wordpress.com/2009/04/13/milton-friedman-on-labor-unions/

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Post Options Post Options   Thanks (0) Thanks(0)   Quote lrisner Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:50pm
Originally posted by John Beagle John Beagle wrote:

Milton Friedman makes the case that labor unions are no longer on the side of angels.

Milton says, and I paraphrase: It used to be that if you said ‘trade union’ you said good. That’s changed, and desirably it’s changed. Why, because the harm Trade Unions have done have become obvious and patent that even the most innocent and naive, well meaning people, no longer equate labor unions with labor.

Full Blog Post with Video of Milton Friedman:
http://capitalismandfriedman.wordpress.com/2009/04/13/milton-friedman-on-labor-unions/



Miton Friedman also said "Greed is good", well we see what good greed has done us. Just look at Wall Street!

I dare to say that many of you "Local" Businessmen wouldn't even be in business in this Town if it were not for Unions.



Misconceptions and lack of Labor education!  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:52pm
I realize full well that a Strike vote is in many cases posturing.  Unfortunately AK didn't exactly look at it that way and everyone suffered.  And you are right I have never belonged to a Union and have no desire to be in one.  In my opinion Unions are a major disadvantage for Ohio in this day and age.
 
A prime example in my laymans mind is the Public Safety Union and their power over Cities.  I think Unions have out lived there purpose in most cases. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Pacman Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 5:56pm
Irisner you failed to answer my question.  I would like to know.
 
"There is a lot of misconceptions about Unions today."
 
Such as?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hermes Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 6:15pm
Since we are talking union,I really hesitate to say this because I am PRO-UNION,but three occupations that I'd like to see the union dissolved from is police-firemen and teachers. I have always said that these three should never,ever be involved with a union in any shape or form. As for any other jobs,GO UNION !!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lrisner Quote  Post ReplyReply Direct Link To This Post Posted: Jul 17 2009 at 6:28pm
Originally posted by Pacman Pacman wrote:

I realize full well that a Strike vote is in many cases posturing.  Unfortunately AK didn't exactly look at it that way and everyone suffered. 


AK never gave the Union a chance. AK did win the PR war, I will admit. Only because their Pockets were deeper.

I can't elaborate further without legal jeopardy.



Originally posted by Pacman Pacman wrote:

you are right I have never belonged to a Union and have no desire to be in one.  In my opinion Unions are a major disadvantage for Ohio in this day and age.


Very true! All Businesses in Ohio would be more properous if Ohio made it Legal to work Employees at wages less than the Minimum wage. Pay them $3/Hr and profits will soar! Pay them $2/Hr and even more Profits! How low should wages go?

Where does it End?

The point of my extreme example is that there has to be a Balance. Some of the comments in this Post has shown no balance.


Originally posted by Pacman Pacman wrote:

 
A prime example in my laymans mind is the Public Safety Union and their power over Cities.  I think Unions have out lived there purpose in most cases. 


I don't entirely disagree. I just dislike the "Misinformation" that is out there about Unions in general and how easily it is accepted as true!

There are bad Unions just the same as there is bad Companies (from a Labor stand point).

I just talked to a "Local Dept Store" Cashier recently and He commented how much he hated there. I ask "what's the problem?" He said " I came in this morning and ask my Boss about being off next Week and he told me that he did not want to talk about it until I was on the Clock. I wasn't due to punch in for 15 minutes. He did not have to be a jerk!"

I chuckled and answered "Well you have to understand, your Employer was in Court a few years ago and lost a Huge Payout for manipulating Employees into working off the Clock. Your Boss probably has orders from Corp.Office to have no Supervisor Relations with Employees until they are punched in. That no doubt includes talking about work Schedules".

He was amazed, but understood!


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