Cleveland-Cliffs reaches tentative labor deal, to invest $4B on plants

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Cleveland-Cliffs (NYSE:CLF) has reached a tentative agreement with the United Steelworkers union on a new four-year labor agreement, ahead of the current contract’s September 1 expiration.

If ratified by USW local union memberships, the new contract would cover 12K employees across the company’s U.S. steelmaking assets in Illinois, Indiana, Minnesota, Ohio, Pennsylvania and West Virginia.

The union said the deal improves wages, bolsters existing health insurance provisions for workers and retirees without increasing costs, and includes a commitment for Cliffs (CLF) to invest $4B in USW represented facilities over the four-year term.

CEO Lourenco Goncalves had said he expected a strike would be avoided, seeing no differences with the union.

USW also is in negotiations with U.S. Steel (X) over contracts that expire on September 1, and the two sides appear to be at an impasse.

Cleveland-Cliffs (CLF) shares are “ridiculously cheap,” with commodities in a supercycle, Leo Nelissen writes in a bullish analysis published recently on Seeking Alpha.

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