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The union representing AK Steel Corp.'s Middletown hourly workforce — the International Association of Machinists and Aerospace Workers/Armco Employees Independent Federation Local 1943 — offered Saturday what it called "highlights" of AK's final contract proposal.

Proposed contract

• If approved by a union vote Monday, the new contract would go into effect Oct. 1 and expire Sept. 30, 2011;

• "The union's position prevailed ... and includes several improvements" on pensions. According to the union, a new defined benefit pension under the IAM pension fund is established, to which the company would make a $1.80 contribution per hour based on a 40-hour work week;

• All returning employees are guaranteed 40-hour work week;

• Placing all production and maintenance workers into one of seven job descriptions occupying five labor grades. A promotion from one labor grade to another will bring "a much larger pay increase than previously experienced by our membership."

• Wages and incentives:

Grade 1: Utility person — $15.91; $16.39, 18 months after effective date; $16.88, 36 months after effective date;

Grade 2: Utility technician — $17.50; $18.03, 18 months after effective date; $18.57, 36 months after effective date;

Grade 3: Operating technician — $19.36; $19.94, 18 months after effective date; $20.54, 36 months after effective date;

Grade 4: Operating technician and maintenance technician — $20.42; $21.03, 18 months after effective date; $21.66, 36 months after effective date;

Grade 5: Senior operating technician and senior maintenance technician — $21.75; $22.40, 18 months after effective date; $23.07, 36 months after effective date.

• Preservation of seniority;

• $10 million to support members during transition back to work; $5 million would go to members, the rest to profit sharing and escrow; members would receive $300 per week during return-to-work period up to Dec. 31.

Return-to-work agreement

• Withdrawal with prejudice or dismiss several pending grievances among union and company;

• Termination of the employment security plan;

• All disciplinary infractions existing on an employee's record on the date of the agreement would not be used after the date of the agreement;

• Temporary replacement workers, contractor employees and company supervisors will remain from Oct. 1-March 31, 2007 and will be free of harassment;

• Company will provide a "recall list" that excludes those who were discharged, retired or resigned during the lockout no later than Oct. 4;

• Employees will have a physical and an alcohol- and substance-abuse test; those who do not report for such tests will be deemed resigned;

• Completion of safety awareness and related training;

• Recall must be completed by Jan. 1, 2007.

• Eligible employees may be scheduled to work less than 40 hours per week; schedules may include 10- or 12-hour work days;

• If there are not enough union employees, non-bargaining-unit employees may perform union jobs;

• Random alcohol and drug testing;

Contact this reporter at (513) 705-2840 or dgreber@coxohio.com.