Third Time's the Charm? Metallus, Steelworkers Reach New Tentative Deal

CANTON, OH – January 16, 2026 – After months of tense negotiations and two stunning rejections by union members, specialty metals manufacturer Metallus and the United Steelworkers (USW) Local 1123 have reached a third tentative agreement for a new four-year contract. The deal, announced today, represents a critical breakthrough for the Canton-based company and its approximately 1,200 bargaining employees.

The path to this point has been fraught with uncertainty. Union members previously voted down proposed contracts on October 30 and December 18, 2025, sending negotiators back to the bargaining table. To allow the union time to present the new proposal to its members and organize a ratification vote, the current labor contract has been extended for 14 days, until February 12, 2026. Operations at the Canton facilities are expected to continue without interruption during this period.

In a statement, Metallus CEO Mike Williams projected cautious optimism, framing the agreement as a collaborative success. "We have reached a new tentative agreement that reflects our ongoing effort to balance both the needs of our employees and the priorities of the company," Williams said. "The tentative contract offers a fair and reasonable resolution, and we value the constructive cooperation from all parties to reach a solution that benefits our employees, maintains job stability, and supports Metallus' future success."

The Rocky Road to a Resolution

The journey to this third agreement underscores a significant disconnect that emerged between union leadership and the rank-and-file members. Following the second rejection on December 18, Metallus expressed "deep disappointment," noting that the failed proposal had secured the backing of both the local union bargaining committee and its international representatives.

The company had publicly highlighted what it considered major concessions in that second offer, including "historic wage increases," comprehensive healthcare coverage with minimal employee costs, and enhanced work-life benefits like paid parental leave. Despite these seemingly attractive terms, the membership delivered a decisive 'no' vote, signaling that core concerns remained unaddressed.

Following that setback, USW District 1 Director Donnie Blatt acknowledged the need to bridge the gap. He stated that union leadership would meet directly with members to better understand their specific objections before re-engaging with the company. This period of internal consultation appears to have been crucial, paving the way for the revised agreement now on the table. While the precise sticking points for the membership have not been made public, the repeated rejections suggest deep-seated concerns regarding wages, benefits, safety, or other work-life issues that the initial offers failed to adequately resolve.

A Fragile Peace for a Local Economic Engine

For Canton and the surrounding region, the stakes of these negotiations are immense. Metallus is not just a major employer; it is an industrial cornerstone with roots stretching back over a century. The company, which posted $1.1 billion in sales in 2024, is a premier U.S. producer of high-performance alloy steel bars and seamless mechanical tubing, manufactured from recycled scrap metal. These specialty products are critical components for demanding applications in the aerospace, defense, automotive, and energy sectors.

The 1,200 USW workers at the heart of this contract are vital to that production. A prolonged dispute or work stoppage would have sent damaging ripples through the local economy and complex national supply chains. The new tentative agreement, therefore, represents more than just a potential contract; it is a bid to secure job stability for a significant portion of the area's skilled workforce and ensure operational continuity for a key player in American advanced manufacturing.

The emphasis on a deal that "maintains job stability," as noted by CEO Mike Williams, speaks directly to this broader economic importance. Securing four years of labor peace would allow Metallus to focus on its long-term strategic goals, including meeting heightened demand from the defense and aerospace industries, without the looming threat of operational disruption.

A Bellwether for Broader Industry Trends

While the Metallus negotiation is a local affair, it does not exist in a vacuum. It unfolds against a backdrop of renewed labor activism and significant upcoming negotiations across the American steel industry. Contracts covering approximately 25,000 steelworkers at industry giants Cleveland-Cliffs and U.S. Steel are set to expire on September 1, 2026, making the outcome in Canton a potential indicator of labor sentiment.

National priorities for the USW have centered on securing wage increases that outpace inflation, protecting comprehensive healthcare benefits from rising costs, and ensuring job security. Data from the Bureau of Labor Statistics consistently shows that unionized manufacturing workers earn a premium over their non-union counterparts, a fact that fuels high expectations at the bargaining table.

The successful negotiation of a third deal at Metallus, especially after initial failures, demonstrates a resilience from both management and labor to avert a crisis. It suggests a shared understanding that a mutually acceptable agreement is preferable to a costly conflict. The final details of the agreement, once public, will be closely scrutinized by industry analysts and labor leaders alike for clues about where the balance of power lies in manufacturing today.

With the contract extension in place, the focus now shifts entirely to the union hall. The coming days will be critical as USW Local 1123 leadership communicates the terms of the new deal to its members. All eyes in Canton and the broader industry now turn to the union members, whose collective decision in the upcoming vote will determine the path forward for the next four years.