AK Steel to pay $175 million for Butler retirees’ health care — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

AK Steel to pay $175 million for Butler retirees’ health care

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AK Steel has settled a lawsuit brought by former employees of its Butler Works operation north of Pittsburgh after the company announced it would cut some retirement health benefits and begin charging premiums for others.

The suit was brought by workers who retired from the Butler plant before 2006. The retirees claimed the changes violated various collective bargaining agreements that promised the company would provide health benefits throughout their retirement.

Under the settlement, AK Steel will spend $87.6 million to provide retiree benefits through 2014 and $91 million to provide benefits after that.

In a statement, the steelmaker called the settlement fair for both sides.

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