Cleveland-Cliffs’ New 4-Year Labor Contract with the UAW Ratified at Dearborn Works

Rhea-AI Summary

Cleveland-Cliffs Inc. (NYSE: CLF) has announced the ratification of a new four-year labor contract with the United Auto Workers (UAW) Local 600 for its Dearborn Works operations. The contract, effective through July 31, 2028, will cover approximately 1,000 UAW-represented workers at Dearborn. Lourenco Goncalves, Chairman, President and CEO of Cleveland-Cliffs, emphasized the company's commitment to a collaborative relationship that benefits both employees and the company as a whole. This agreement marks another step in solidifying the partnership between Cleveland-Cliffs and the UAW for the coming years.

Positive

• New 4-year labor contract ratified, providing stability until 2028
• Agreement covers approximately 1,000 workers at Dearborn Works
• Demonstrates collaborative relationship between company and union

Negative

• None.

Insights

Labor Relations Expert

The ratification of a new 4-year labor contract between Cleveland-Cliffs and UAW Local 600 for Dearborn Works is a positive development for the company's stability and operations. This agreement, covering approximately 1,000 workers, suggests a harmonious relationship between management and labor, which is important in the steel industry.

The contract's duration until July 31, 2028, provides Cleveland-Cliffs with operational certainty and helps mitigate potential disruptions from labor disputes. This stability is particularly valuable given the cyclical nature of the steel industry and its sensitivity to economic fluctuations.

While specific terms aren't disclosed, the CEO's statement about an "equitable deal" implies a balanced agreement that addresses both worker concerns and company needs. This could potentially lead to improved productivity and employee morale, benefiting Cleveland-Cliffs' competitiveness in the long run.

Financial Analyst

From a financial perspective, the new labor contract with UAW Local 600 at Dearborn Works is likely to provide Cleveland-Cliffs with improved cost predictability over the next four years. This can be important for long-term financial planning and potentially enhance investor confidence.

While the immediate financial impact isn't quantified, the agreement may involve increased labor costs. However, these could be offset by productivity gains and reduced risk of work stoppages. The steel industry's profitability is heavily influenced by operational efficiency, making stable labor relations a key factor in financial performance.

Investors should monitor future earnings reports to assess any impact on operating margins and production output at Dearborn Works. The ability to secure a multi-year agreement also reflects positively on management's labor relations skills, which can be a differentiator in this labor-intensive industry.

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) (“Cliffs”) announced today that its employees represented by the United Auto Workers (UAW) Local 600 have ratified a four-year labor contract for its Dearborn Works operations. The new contract is effective through July 31, 2028, and will cover approximately 1,000 UAW-represented workers at Dearborn.

Lourenco Goncalves, Chairman, President and CEO, stated, “This equitable deal with our team at Dearborn is the latest illustration of our strong commitment to a collaborative relationship that benefits our employees and Cliffs as a whole. We are pleased to solidify this partnership with the UAW for another four years.”

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240816374487/en/

MEDIA CONTACT:

Patricia Persico

Senior Director, Corporate Communications

(216) 694-5316

INVESTOR CONTACT:

James Kerr

Director, Investor Relations

(216) 694-7719

Source: Cleveland-Cliffs Inc.

FAQ

What is the duration of Cleveland-Cliffs' (CLF) new labor contract with UAW at Dearborn Works?

Cleveland-Cliffs' new labor contract with UAW Local 600 at Dearborn Works is for a duration of four years, effective through July 31, 2028.

How many workers are covered by Cleveland-Cliffs' (CLF) new UAW contract at Dearborn Works?

The new labor contract covers approximately 1,000 UAW-represented workers at Cleveland-Cliffs' Dearborn Works operations.

When was the new labor contract between Cleveland-Cliffs (CLF) and UAW Local 600 ratified?

The press release doesn't specify the exact ratification date, but it announces that the contract has been ratified and will be effective through July 31, 2028.

What did Cleveland-Cliffs' (CLF) CEO say about the new labor agreement with UAW?

CEO Lourenco Goncalves stated that the deal illustrates their strong commitment to a collaborative relationship benefiting employees and the company, and expressed pleasure in solidifying the partnership with UAW for another four years.