AK Steel Holding Corporation (NYSE:AKS) has announced that members of the United Auto Works (AUW) have accepted a new labor agreement that covers 319 workers at Rockport.

The new contract caters to hourly employees at Rockport and it will be active for the next four years. The company revealed that the AUW members ratified the agreement through a vote that took place on September 27. The new contract is expected to go live on September 30, 2021. The contract is vital for both the company as well as the UAW members because it will facilitate a strong working relationship between the company and the workers. It will also guarantee job security for the workers.

“We are pleased to have reached an agreement at our Rockport Works ahead of the expiration date. The new agreement provides a competitive labor contract that advances the interests of our employees and the company,” stated AK Steel Chief Executive Officer, Roger K. Newport.

AK Steel is an industry leader in the production of flat-rolled carbon, electrical and stainless steel. Its products are mainly used in the automotive manufacturing industry, the electrical power industry, manufacturing, and infrastructure. The firm also offers solutions to clients through the production of stainless steel and carbon tubing products in some of its subsidiaries. It also carries out other activities such as hot and cold stamping, tooling and dye design.

Rockport Works on the other hand, deals with the production of coated and cold-rolled carbon and stainless steel. Most of its products are also used in the vehicle manufacturing industry. AK Steel did not go into details about the process through which the UAW members and the company reached the agreement or the key points of consideration during the meetings. Meanwhile, the company is pleased with the fact that it was able to come to an agreement that works not only for the company but also for the hourly production employees that the deal will cater to.

AK Steel stock closed the latest trading session on Thursday at $5.50 after a 2.33 percent gain compared to the value of the stock during the close of the previous trading session.