Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it
has reached a tentative agreement with the United Steelworkers
(USW) on a new 4-year labor contract that will be effective on
September 1, 2022.
The new contract will cover 12,000 USW-represented employees at
the following facilities:
Indiana
Pennsylvania
- Burns Harbor Works
- Indiana Harbor Works—East
- Indiana Harbor Works—West
- New Carlisle
- Coatesville
- Steelton
- Conshohocken
Ohio
Illinois
- Cleveland Works
- Warren
- Columbus
West Virginia
Minnesota
Lourenco Goncalves, Chairman, President and CEO said, “Our
employees are the heart and soul of Cleveland-Cliffs. The USW is a
partner and an ally, and we look forward to sharing in our future
success together. This agreement allows us to do just that, while
keeping our cost structure highly competitive.”
The agreement is pending ratification by USW local union
memberships. No additional details will be made available at this
time.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
North America. Founded in 1847 as a mine operator, Cliffs also is
the largest manufacturer of iron ore pellets in North America. The
Company is vertically integrated from mined raw materials, direct
reduced iron, and ferrous scrap to primary steelmaking and
downstream finishing, stamping, tooling, and tubing. We are the
largest supplier of steel to the automotive industry in North
America and serve a diverse range of other markets due to our
comprehensive offering of flat-rolled steel products. Headquartered
in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000
people across its operations in the United States and Canada.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. All statements other than historical facts,
including, without limitation, statements regarding our current
expectations, estimates and projections about our industry or our
businesses, are forward-looking statements. We caution investors
that any forward-looking statements are subject to risks and
uncertainties that may cause actual results and future trends to
differ materially from those matters expressed in or implied by
such forward-looking statements. Investors are cautioned not to
place undue reliance on forward-looking statements. Among the risks
and uncertainties that could cause actual results to differ from
those described in forward-looking statements are the following:
continued volatility of steel, iron ore and scrap metal market
prices, which directly and indirectly impact the prices of the
products that we sell to our customers; uncertainties associated
with the highly competitive and cyclical steel industry and our
reliance on the demand for steel from the automotive industry,
which has been experiencing a trend toward light weighting and
supply chain disruptions, such as the semiconductor shortage, that
could result in lower steel volumes being consumed; potential
weaknesses and uncertainties in global economic conditions, excess
global steelmaking capacity, oversupply of iron ore, prevalence of
steel imports and reduced market demand, including as a result of
the prolonged COVID-19 pandemic, conflicts or otherwise; severe
financial hardship, bankruptcy, temporary or permanent shutdowns or
operational challenges, due to the ongoing COVID-19 pandemic or
otherwise, of one or more of our major customers, including
customers in the automotive market, key suppliers or contractors,
which, among other adverse effects, could lead to reduced demand
for our products, increased difficulty collecting receivables, and
customers and/or suppliers asserting force majeure or other reasons
for not performing their contractual obligations to us; disruptions
to our operations relating to the ongoing COVID-19 pandemic,
including the heightened risk that a significant portion of our
workforce or on-site contractors may suffer illness or otherwise be
unable to perform their ordinary work functions; risks related to
U.S. government actions with respect to Section 232 of the Trade
Expansion Act of 1962 (as amended by the Trade Act of 1974), the
United States-Mexico-Canada Agreement and/or other trade
agreements, tariffs, treaties or policies, as well as the
uncertainty of obtaining and maintaining effective antidumping and
countervailing duty orders to counteract the harmful effects of
unfairly traded imports; impacts of existing and increasing
governmental regulation, including potential environmental
regulations relating to climate change and carbon emissions, and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorizations of, or from, any governmental
or regulatory authority and costs related to implementing
improvements to ensure compliance with regulatory changes,
including potential financial assurance requirements; potential
impacts to the environment or exposure to hazardous substances
resulting from our operations; our ability to maintain adequate
liquidity, our level of indebtedness and the availability of
capital could limit our financial flexibility and cash flow
necessary to fund working capital, planned capital expenditures,
acquisitions, and other general corporate purposes or ongoing needs
of our business; our ability to reduce our indebtedness or return
capital to shareholders within the currently expected timeframes or
at all; adverse changes in credit ratings, interest rates, foreign
currency rates and tax laws; the outcome of, and costs incurred in
connection with, lawsuits, claims, arbitrations or governmental
proceedings relating to commercial and business disputes,
environmental matters, government investigations, occupational or
personal injury claims, property damage, labor and employment
matters, or suits involving legacy operations and other matters;
uncertain cost or availability of critical manufacturing equipment
and spare parts; supply chain disruptions or changes in the cost,
quality or availability of energy sources, including electricity,
natural gas and diesel fuel, or critical raw materials and
supplies, including iron ore, industrial gases, graphite
electrodes, scrap metal, chrome, zinc, coke and metallurgical coal;
problems or disruptions associated with transporting products to
our customers, moving manufacturing inputs or products internally
among our facilities, or suppliers transporting raw materials to
us; uncertainties associated with natural or human-caused
disasters, adverse weather conditions, unanticipated geological
conditions, critical equipment failures, infectious disease
outbreaks, tailings dam failures and other unexpected events;
disruptions in, or failures of, our information technology systems,
including those related to cybersecurity; liabilities and costs
arising in connection with any business decisions to temporarily or
indefinitely idle or permanently close an operating facility or
mine, which could adversely impact the carrying value of associated
assets and give rise to impairment charges or closure and
reclamation obligations, as well as uncertainties associated with
restarting any previously idled operating facility or mine; our
ability to realize the anticipated synergies and benefits of our
recent acquisition transactions and to successfully integrate the
acquired businesses into our existing businesses, including
uncertainties associated with maintaining relationships with
customers, vendors and employees and known and unknown liabilities
we assumed in connection with the acquisitions; our level of
self-insurance and our ability to obtain sufficient third-party
insurance to adequately cover potential adverse events and business
risks; challenges to maintaining our social license to operate with
our stakeholders, including the impacts of our operations on local
communities, reputational impacts of operating in a
carbon-intensive industry that produces greenhouse gas emissions,
and our ability to foster a consistent operational and safety track
record; our ability to successfully identify and consummate any
strategic capital investments or development projects,
cost-effectively achieve planned production rates or levels, and
diversify our product mix and add new customers; our actual
economic mineral reserves or reductions in current mineral reserve
estimates, and any title defect or loss of any lease, license,
easement or other possessory interest for any mining property;
availability of workers to fill critical operational positions and
potential labor shortages caused by the ongoing COVID-19 pandemic,
as well as our ability to attract, hire, develop and retain key
personnel; our ability to maintain satisfactory labor relations
with unions and employees; unanticipated or higher costs associated
with pension and OPEB obligations resulting from changes in the
value of plan assets or contribution increases required for
unfunded obligations; the amount and timing of any repurchases of
our common shares; and potential significant deficiencies or
material weaknesses in our internal control over financial
reporting.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K
for the year ended December 31, 2021, and other filings with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20220827005009/en/
MEDIA CONTACT: Patricia Persico Senior Director,
Corporate Communications (216) 694-5316
INVESTOR CONTACT: James Kerr Manager, Investor Relations
(216) 694-7719
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