Steel Mills
Salaried Workers OK Labor Deal with Algoma; Hourly Talks Continue
Written by Laura Miller
July 28, 2022
United Steelworkers Local 2724 – which represents technical, professional, and front-line supervisors – has ratified a labor agreement with Canadian flat-rolled steelmaker Algoma Steel.
Local 2724 membership voted 59.9% in favor of the labor memorandum, resulting in a contract that renews on August 1.
“I extend sincere thanks to the negotiating committees for their concerted efforts to work through the issues in a timely manner,” Algoma president and CEO Michael Garcia said in a statement. “Together we have made great strides in Algoma’s transformation, and we are on track to position the company for a secure, sustainable future as a leading producer of green steel,” he added.
Algoma said the collective agreement provides “an enhanced economic package for their members” and also sets “out the process to transition the workforce to electric arc steelmaking.”
But a deal has not yet been reached with USW Local 2251, which represents hourly workers at Algoma. The company’s transition to EAF steelmaking from its current integrated route has been a contentious issue with Local 2251 because it would result in the closing of Algoma’s coke batteries and the loss of many jobs.
Local 2251 had special membership meetings scheduled for Wednesday, July 27, just days ahead of the Sunday, July 31 expiration of the current contract. By law, a strike vote must be taken prior to the termination of the collective agreement, the meeting announcement states.
When asked by SMU how optimistic he is that the Local will reach an agreement by Sunday, Mike Da Prat, president of Local 2251, said he is “Not very, at all.”
One sticking point in talks appears to be wages and cost of living adjustments (COLA).
A July 28 message from the negotiating committee to its members explains why Local 2251 is asking for wage increases. The union noted that COLA stipulations are meant to protect wages from inflation and should not be considered a pay increase.
“[COLA] is a form of insurance that only pays if inflation rises. It should be noted that Algoma’s product price increases with increases in inflation to protect their profits. COLA does the same for our wages and is not a separate wage increase!” the union said. “In a time of extraordinary profits, we are entitled to a fair agreement!”
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
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