When using the Maplex Label Engine, labels respect the 'reduce font size' property for the labeling fitting strategy, but the reduced font size does not comply with the 'position option' for the placement property.
1. Check "Never remove label"2. Label features3. Convert labels to annotation4. Editing unplaced annotation(reduced fonts) by using the "Rotate Tool"5. This can be a daunting task if there are several unplaced labels.