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Associated Press and MPR News Staff
Hibbing, Minn.

Cleveland-Cliffs, Steelworkers reach contract agreement

A haul truck with 250 tons of taconite ore
A haul truck with 250 tons of taconite ore leaves as another truck arrives to take on its load in August 2014 inside United Taconite's Thunderbird Mine in Eveleth, Minn.
Derek Montgomery for MPR News 2014

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Cleveland-Cliffs Inc. and the United Steelworkers union have reached a tentative agreement on a new, four-year labor contract.

The Cleveland-based company and the union announced the deal Sunday. The proposed contract takes effect Monday and covers about 1,800 union workers at Cliffs' United Taconite and Hibbing Taconite mines on Minnesota's Iron Range, as well as at the Tilden and Empire mines in Michigan.

Cliffs' chairman, president and CEO Lourenco Goncalves said in a news release that the company is "pleased to reach a new labor contract that is fair and equitable to both parties, and provides Cliffs a competitive cost structure for future success. This agreement once again reinforces that we have more in common with the USW than we have differences, and we look forward to continuing our strong partnership."

Steelworkers President Leo W. Gerard praised Cliffs "for bargaining seriously to reach a fair agreement."

"Cliffs acknowledges the sacrifices of our members during recent tough times and now that the industry is prospering, looks to give its dedicated workforce its fair share," Gerard said in a news release.

The terms of the new contract were not released. The agreement still must be ratified by union members.

Negotiations continue on new contracts between the Steelworkers and two other companies with mining operations on the Iron Range — U.S. Steel and ArcelorMittal. Those two contracts expired a month ago, and union members have voted to authorize a strike — though workers remain on the job under extensions of the previous contract.