MIDDLETOWN, Ohio (AFX) - AK Steel Holding Corp. said Friday that members of the United Auto Workers unit approved a new six-year labor contract, which offers wage increases to 1,400 Pennsylvania workers but also freezes their pension plan.
The company and union had reached a tentative agreement earlier in the week for workers at its Butler Works plant, and the UAW said Friday that the contract passed 'by a significant majority.' The contract, covering hourly production and maintenance workers, will take effect Oct 1. and run through Sept. 30, 2012.
Under the contract, the company will replace workers' traditional defined-benefit pension plan with company contributions to worker 401(k) plans.
Butler Works produces electrical, stainless and carbon sheet steel products.
AK Steel shares closed down 95 cents, or 7.3 percent, at $12.11 on the New York Stock Exchange. The stock has traded between $6.28 and $15.95 over the past 52 weeks.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.