The Timken Company and the United Steelworkers Local 1123 announced that they have reached a new tentative agreement on a five year contract to replace the existing labor agreement, which expires in September 2013. Members will vote on the new agreement, which is unanimously supported by local USW negotiators, within the next two weeks.

The parties reached a preliminary agreement in December, but union membership failed to ratify the proposal in a January vote, putting at risk a multi million dollar investment in Stark County. Timken is prepared to invest USD 225 million in its Faircrest Steel Plant if a new labor agreement is ratified.

Mr Salvatore J Miraglia Jr, president of Timken's Steel Group, said that "We have outlined a very attractive investment for our steel operations. But it clearly will not move forward without a new agreement that ensures workforce stability throughout construction and startup. The vote will be our final opportunity to put the pieces in place to make this investment happen."

The project has received state and local assistance, in return for Timken's commitment to job security at the plant during the term of that support.

The tentative agreement continues to provide:

Increases to permanent base wages every year, in addition to cost of living adjustments
Increases in both variable pay opportunities and incentive pay
Improvements in health and wellness plans
Increases in pension benefits
Includes changes to the wage escalation rate for new employees