Metallus Inc. announced that members of United Steelworkers Local 1123 voted to reject the company’s second tentative labor agreement on December 18, 2025. The vote covered roughly 1,200 bargaining employees at the Canton, Ohio, plant and was decided despite support from the union’s local bargaining committee and international representatives.
The rejection follows an earlier vote on October 30, 2025, when union members also rejected a first tentative agreement that had been negotiated on October 3. Both votes were driven by members’ concerns that the proposals did not provide sufficient wage increases, healthcare contributions, or work‑life benefits to meet their expectations. Union leaders cited the need for higher pay and stronger benefits as key reasons for the defeats.
Metallus CEO Mike Williams expressed disappointment, noting that the agreements were designed to offer competitive compensation while protecting the company’s long‑term health. He added that the company remains committed to negotiating in good faith and to reaching a resolution that supports both employees and the business’s future. The company’s financial performance in the third quarter of 2025—net sales of $305.9 million and adjusted EBITDA of $29.0 million—underscores the importance of stable labor relations for sustaining profitability and funding its specialty‑steel growth strategy.
The vote’s outcome extends labor uncertainty and could lead to higher labor costs if a new agreement is eventually reached. It also heightens the risk of operational disruptions, such as a strike, which could impact production and customer commitments in the aerospace and defense markets where Metallus is pursuing a $250 million annual sales run‑rate by mid‑2026. The company’s recent margin gains are therefore vulnerable to the potential cost pressures and operational risks associated with the ongoing dispute.
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