AK Steel and City of Mansfield Reach Agreement on Lawsuit; U.S. Marshals to Enforce Law and Order on Picket Line.

Business Editors

MIDDLETOWN, Ohio--(BUSINESS WIRE)--March 22, 2000

AK Steel today said it has settled its lawsuit against the City of Mansfield and certain of its public officials in connection with an unlawful Labor Day injunction and subsequent union riot on September 10, 1999 at the company's Mansfield Works. A key term of the settlement is a Federal Court consent decree under which U.S. Marshals will enforce law and order on United Steelworkers of America, AFL-CIO picket lines at the plant and elsewhere as necessary where the company conducts business.

AK Steel said it continues to aggressively pursue its related claim against the United Steelworkers of America, AFL-CIO and its international and Local 169 union officials and representatives.

As part of the settlement, the City of Mansfield publicly acknowledges that its officials and employees who participated in a Labor Day (1999) meeting with a state court judge and USWA officials, knew at the time that AK Steel did have a federally protected right to operate its facility with replacement workers. As a result of that meeting, however, an unlawful restraining order was issued, preventing AK Steel from operating its Mansfield plant.

The City of Mansfield has agreed that it will not interfere in the future with the right of AK Steel or any other employer to use replacement workers. The city has also agreed to drop its appeal of its loss in federal court regarding Mansfield's passage of an unconstitutional, USWA-supported local ordinance requiring employers to release confidential data about private security personnel. The City of Mansfield has also agreed to reimburse AK Steel for a portion of the company's legal fees incurred in defeating the ordinance.

The agreement also states that the City of Mansfield is prohibited by the National Labor Relations Act and by Ohio law from taking any action to modify or revoke AK Steel's enterprise zone agreement as a result of employment level changes caused by the ongoing labor dispute. The settlement states that a temporary reduction in employment and/or annual payroll amounts which are caused by the labor dispute do not constitute a breach of the terms of AK Steel's tax abatement agreement. Further, the agreement states that the existing Richland County Tax Incentive Review Council is the proper entity to review AK Steel's tax abatement agreement.

In addition, the agreement stipulates that the city will use its best efforts to help AK Steel to procure additional tax abatement for improvements at the plant including, but not limited to additional security systems.

Additional terms include immediate removal of the shacks, barricades and other materials at the Bowman Street picket lines and the establishment of a no-walk zone at all company gates. The City of Mansfield will also enforce a zero-tolerance policy against the commission of crimes in connection with the labor dispute. Federal marshals will meet Thursday with AK Steel officials in Mansfield to plan the demolition of picket shanties, establish no-walk zones and discuss security measures.

The city agreed that its police division will assist U.S. Marshals in maintaining law and order. The consent decree will remain in effect for the duration of the labor dispute at the Mansfield Works and will be enforced by a federal judge.

"This settlement should result in enhanced security, including by U.S. Marshals to police the picket line and other areas affected by this labor dispute," said Alan H. McCoy, vice president, public affairs for AK Steel. "We are pleased a federal judge will continue to exercise jurisdiction over conduct occurring in Mansfield and elsewhere related to the labor dispute."