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MIDDLETOWN — AK Steel Corp., in response to media reports on why its final contract offer was rejected Monday by members of the International Association of Machinists/Armco Employees Independent Federation Local Lodge 1943, issued a statement Tuesday on those concerns.

Alan McCoy, vice president of government and public relations, responded to the union's concerns about the return to work plan, pensions, employment security and contracting out proposals.

• Pensions: The company said media reports said that a union summary called pensions the "single most important issue during these negotiations."

According to the company's statement, at the outset of negotiations, the then-AEIF expressed a strong desire to maintain a traditional defined benefit pension plan, and eventually chose to affiliate with the Machinists, according to the union, to have access to the Machinists' multi-employer defined benefit pension plan.

The company's longstanding position during negotiations had been a company contribution to a 401(k) account.

In an Aug. 18 presentation, the Machinists said its multi-employer pension plan provided a five-year "free look" period in which a participating employer may withdraw, according to the company.

Despite the company's longstanding proposal for a 401(k) account, in the interest of meeting what the union proclaimed was their "single most important issue," in its final contract offer AK Steel proposed participation in the Machinists plan with written assurances the five-year "free look" would remain available to AK Steel.

The company's offer provided for a $1.80 per hour contribution to 401(k) accounts if the company withdrew from the plan.

• Return-To-Work Plan. AK Steel said the plan was proposed to provide a safe and uninterrupted transition and continue meeting customer needs.

The proposal agreed to return union members to the job by Jan. 1 and reiterated the need to have a transition free of hostility, violence, threats or intimidation.

• Employment Security/Contracting Out. On Sept. 12, AK Steel, for the first time during negotiations, offered employment security for returning union members to address concerns about work force restructuring and contracting out.

The proposal reiterated employment security for all returning union members, which would have protected those employees from layoff for the duration of the five-year contract and guaranteed a 40-hour work week opportunity.