Steel Mills

Job Cuts at Essar Steel Algoma

February 14, 2015

USW Local 2251 reports that Essar Steel Algoma is terminating 55 positions due to a decline in plate steel orders. According to a report by Soo Today, most of the employees have not completed their probationary period.

The job cuts follow an announcement Jan. 23 confirming a contract for 1500 tonnes of plate for construction of six Canadian Arctic Offshore Patrol Ships. At that time, Essar also announced plans to restart the #6 blast furnace by November 2015.

The company said it planned to add nearly 200 jobs in April to prepare for the restart and to meet production demand. Essar has asked the city of Sault Ste. Marie to contribute $1 million towards the upgrade and restart of the blast furnace, citing the economic benefits the investment would bring to the region. Addition of the #6 blast furnace would increase Essar Steel Algoma’s production by 1 million tons.

USW Local 2251 President Mike DaPrat said that Essar hopes to rehire the terminated workers during the April hiring if market conditions allow.