Steel Mills

Algoma Union Ratifies Agreement

Written by Sandy Williams


United Steelworkers at Algoma Steel have ratified a tentative agreement with Algoma’s secured creditors. Members of USW Local 2251 and salaried workers in USW Local 2724 voted to accept the agreement that includes no concessions and some gains, said union leaders.

Algoma, formerly Essar Steel Algoma, has been in Companies’ Creditors Arrangement Act proceedings since November 2015. Ratification of the agreement reached in May was one of the few remaining obstacles for the company to emerge from bankruptcy protection.

The agreement is goods news for Algoma, but comes at a difficult time with the industry facing 25 percent tariffs on steel exports to the United States. Retaliatory tariffs by Canada will go into effect on July 1 on $12.6 billion of U.S. goods.

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