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TwitterAK salary cuts hit more than 800 locally
- Comment: What do you think about AK's cuts?
Friday, December 05, 2008
AK Steel's plan to "weather the storm" by implementing a 5-percent pay reduction for all salaried workers will impact more than 800 people locally.
Currently, about 300 corporate employees work at the company's West Chester Twp. headquarters. In addition, 525 managerial and support personnel are employed at its research and development center on Grove Street, spokesman Alan McCoy confirmed.
Among those included in the reduction are the executive officers, as well as president, chairman and CEO Jim Wainscott.
The steelmaker said it employs about 1,500 salaried workers at operations based in four states. Each employee's pay will be reduced by 5 percent beginning Jan. 1, according to the company.
The action is one the company has considered since the market began heading south in the third quarter. McCoy said so far employees have expressed understanding that AK will do whatever it takes to keep the company strong.
"In early summer, our stock was trading in the $70s. It closed under $7 today," he said. "Our third quarter was the best quarter in company history. We had performed better in the first nine months of this year than all of last year and then the wheels fell off."
Already, AK Steel has idled two plants and laid off almost 1,000 hourly employees.
While voluntary retirement packages have been offered to 350 eligible employees, the company has not ruled out involuntary employment cuts.
Scott Rich, president of the International Association of Machinists and Aerospace Workers Local Lodge 1943, which represents Middletown's hourly work force, said he had no comment on the issue.
Comments
By Future1investor
December 6, 2008 7:27 PM | Link to this
Kudos to the folks who recognized that bailing out the financials which caused this economic collapse and the other manufacturers who don’t employ enough people here in the interest of doing it out of the country. I too pray that the new president can stay long enough to get us on a well worn path in the right direction quickly. I hope that we get another one like him when he is gone. Please check out www.marketedu.com and leave your many and varied comments.
By MAC
December 6, 2008 8:47 AM | Link to this
I certainly hope that the 5% decease doesn’t hurt our middletown economy, but let’s face it 95% pay is better than standing on the unemployment line. My husbands company simply SHUTDOWN, with 90 day notice and it’s been all but impossible for a 60+ year old to get a decent job. Stop whining and count your blessings. At this point any one who doesn’t want a job with a pay cut, just post your unwanted job on Monster.com, I’d apply ASAP..
By karen cox
December 5, 2008 3:46 PM | Link to this
PEOPLE WHO WORK AT AK ARE THE ONES WITH THE NEW HOMES AND BRATTY SPOILED CHILDREN WHO SNEEK AROUND CAUSE THERE MOM AND DAD HAS THE MONEY TO GET THEM OUT OF IT,SO GET OFF OF IT AND COME DOWN TO EARTH,[[[WITH THE REST OF US]]]
By CraneGuy
December 5, 2008 3:39 PM | Link to this
I do remember that Keith and the union leaders share half of that blame, it’s a two way street. AK hourly workers still have a very good contract, thier pay and benefits are better than mine. I don’t live in SW Ohio and i don’t know the details of the move of the headquarters. It’s not a CEO’s job to support a city, it’s to make the company as strong and profitable as possible. I’m sure West Chester isn’t complaining about the move.
By Keith
December 5, 2008 3:21 PM | Link to this
Crane guy do you remeber that Mr. Wainscott and the rest of them locked out the workers? Remember when they packed up and moved to West Chester? Left this city and didnt care about what they put the city through. I dont care if they get a pay cut. They wont miss it.
By Melissa
December 5, 2008 11:25 AM | Link to this
Why do people think just because you work at AK that you are rich? Obviously you don’t work there. If it wasn’t for overtime or the incentive pay and having 2 incomes in the house, we would not make it! Just like everyone else it depends on how you manage your money on what “toys” can be bought. The individuals that have the nice “toys” or huge houses, thumbs up to them they know how to budget, manage their income. Anyone can to that regardless who you are employed by. Give it a break!
By CraneGuy
December 5, 2008 11:00 AM | Link to this
The current economic situation that this country and the world is in was not caused by the steel industry and many others but it is having an obviously huge negative affect on them. AK is handling this as well or better than other steel companies. Those who are saying that Wainscott and other execs should take a bigger paycut are whining. Do you remember where this company was just 5 years ago? Mr. Wainscott and many others have turned this company around, it was put on the S&P 500 this year!
By Unemployed One
December 5, 2008 10:00 AM | Link to this
Ms. Heffner, your facts are incorrect. The Research Center’s address is on Curtis Street, not Grove Street, and there is no where near 525 people employed there. As far as the 5% pay reduction, I don’t think anyone is “crying” about it. I would think they’re just happy to be employed at this point. I know I would be.
By robert
December 5, 2008 9:17 AM | Link to this
The union should take a cut. when they were blocked out they got non union workers that made better steel and AK made mor money.
By Marine
December 5, 2008 9:03 AM | Link to this
One just needs to go shopping and look around, everything I see stocked on the store shelves are made in China. Why? Our government has sold America to the highest bidders. Actually the lowest bidders and moved American jobs overseas and across our boarders. That my fellow Americans is why we have a default in our economy that is putting more and more Americans out of jobs.
By Marine
December 5, 2008 8:54 AM | Link to this
Why Bail out the corrupt banks and financial organizations without changing the leadership, go ahead and let the same corruption lead the the same direction for another financeial melt down. This dosen’t make sence to me! And, the great auto makers, have stopped production in the states by importing many models of foriegn makes and lableing them as GM-Ford and Chysler. A union official always told me to buy American. Where can one find American Made?
By Marine
December 5, 2008 8:44 AM | Link to this
I know our entire country is in critical financial straits. Nothing but corporate and government Greed has caused this problem. At This time we must all pray for the new administration for god to give them the strength of character to do what will be right for our country. No man is worth a multi million dollar salary, just how much does it take to live a good life? In 1966 I signed a contract to serve my country in life or death for $96.50 a month, and was happy to do my part in serving
By slim
December 5, 2008 8:43 AM | Link to this
has every one forgotten the lockout?all the retirees lost their dentalcare and the cost of mail orderprescriptions raised more than double and they wanted to take other benifits from us .these were beniits that were to be for us for our remaining life they took them
By D J
December 5, 2008 8:38 AM | Link to this
Well you could ALWAYS come work where I do….making $8.oo an hour….my company went south I was with them over 14 years…then I had to start all over….so next week I may not even have THIS little low paying job….so Merry Christmas to all and GOD BLESS AMERICA….still….
By Keith
December 5, 2008 8:23 AM | Link to this
Be suprised what your fellow workers are saying ridingharley. I dont work there and have had no desire to either. Im suprised that your spokesman McCoy hasnt asked the govermeant for a bailout. If he and the CEO would take a bigger cut then maybe the 800 wouldnt have to take one.
By grateful
December 5, 2008 8:17 AM | Link to this
5% is nothing compared to other companies that are just closing their doors. During unprecedented times like this, we all have to make sacrifices. We are just making adjustments which means less money for entertaining and extras.
By ridingharley
December 5, 2008 8:00 AM | Link to this
As a salary employee at AK, I’m not crying about my pay. I am very thankful to have the job I have today. I don’t know where you get that we are ALL crying?? From all the posts I’ve seen, the only ones crying are the ones who don’t even work here.. Geez, you obviously have too much time on your hands!!!
By VietVet
December 5, 2008 6:38 AM | Link to this
Even with a 5% pay cut,these folks are still making more than your average paying job including a non union factory.Just have to back off buying all the toys for now.I agree with some of these posts that the pay cut still beats not having a job at all.I’ve been downsized 3 times since 1994.If I had the choice on those three downsizings of staying and taking a pay cut or losing my job,I would have been glad to take the pay cut.Wainscott,McCoy and others should be cut more than 5%.
By Ken
December 5, 2008 6:18 AM | Link to this
Lets see five percent reduction in pay and still working or losing my job? umm,I think thats a no brainer. Wait, I know what AK employees r thinking, if they reduce 5% of my pay I wont be able to buy a 200,000 dollar home with a heated two car garage and a big gas guzzler truck to haul my speed boat, oh no.
By Keith
December 5, 2008 6:07 AM | Link to this
Ak had the money to build there new office building down in West Chester so I dont feel one bit sorry for them. I wish I made as much as McCoy does. Go whine to someone that gives a damn.
By Randy Thompson
December 5, 2008 6:01 AM | Link to this
Hey, its me again,Randy. Heres a solution to are economic crisis, lets all go on welfare and sit in front of our hard earned tax payer dollars and watch on our 60 inch plasma T.V. episodes of Jerry Springer. Look people, the economy is in bad shape, WHAT IT IS?, I know a shocker, companies are about (management) not caring a cent about what makes the company(people) what management cares about is what makes them look good and money.
By ShirleyL
December 5, 2008 5:57 AM | Link to this
I have to somewhat agree with the first post here. For starters, if you’ve got a job in THIS bad economy, better be thankful for it! And for God’s sakes, stop crying about making a little less, when there are those out there who are LOSING their jobs, and making much less to the AK workers. I could only “wish” to make the kind of money even the hourly workers are making there at AK, so I don’t have much pity on those that are crying about the paycuts. It’s a wake up call. YOU STILL HAVE JOBS
By John
December 5, 2008 5:54 AM | Link to this
Poor Wainscott. Only making 19 million instaed of 20 million.(including options)
By Randy Thompson
December 5, 2008 5:46 AM | Link to this
I wish people at AK would stop crying about a five percent paycut. At least they have a job that is paying you to work and not sitting around the house eating bon bons,crying and complaining about not having a job. AK Steel employees are still making good money, just not making 20 plus dollars an hour, those days of good paying jobs are out the door baby,unless your a corrupted lawyer, CEO who cares about nothing but a paycheck,or an autotech, who rips off people.
By Craig
December 5, 2008 4:11 AM | Link to this
We are getting screwed, I should have stayed hourly!