Stelco Confirms New Labor Agreements, Avoids Work Stoppage

The Hamilton, Ontario-based steelmaker averted a potential work stoppage with USW Local 8782, reaching a favorable vote on Friday, Aug. 19. The local had been in a legal position to strike on Sunday, Aug. 22. It was a major piece of the puzzle, as the union represents Stelco’s sole steelmaking operation at its Lake Erie Works in Nanticoke, Ontario.

“We are pleased to have reached long-term, five-year agreements with our valued represented employees,” said Alan Kestenbaum, Stelco’s executive chairman and CEO. “These agreements will provide stability for our employees and their families and provide our customers and shareholders with confidence in Stelco’s ability to continue to deliver on its commitments.”

The respective agreements were reached following extensive negotiations between the Canadian steelmaker and each of the respective USW negotiating committees and will provide long-term stability for Stelco’s operations.

Stelco’s executive noted that the present inflationary environment has been challenging, one that has impacted its workforce and a critical point of negotiations. “While it was not always easy, we believe we have worked together with the union leaders to reach a structure that protects both our workers and their families as well as the company during these unpredictable times,” he said.

USW Local 1005, which represents Stelco’s Hamilton Works, voted to ratify a new five-year contract on Wednesday, while USW Local 8782-08, which represents pickling operations at Lake Erie Works, narrowly approved a new deal in late July.

Editor’s note: Stelco executive chairman and CEO Alan Kestenbaum will sit down for a fireside chat with SMU’s Michael Cowden on Wednesday., Aug. 24, at our Steel Summit conference in Atlanta. The agenda and details to register are here.

By David Schollaert, David@SteelMarketUpdate.com