2nd USW Local OKs Strike at Algoma, Conciliator Assigned to Stelco Talks

Algoma, a Canadian sheet and plate mill, is represented by two unions: Local 2251, which represents hourly workers, and Local 2724, which represents salaried workers.

About 99% of Local 2251 members had already voted in favor of giving the union strike authorization on July 4.

Recall that a strike mandate vote is not a vote to strike. Rather, it authorizes union bargaining teams to call for a strike if they decide that doing so is necessary.

The contract between Sault Ste. Marie, Ontario-based Algoma and the USW expires on July 31.

Meanwhile, local USW chapters at Hamilton, Ontario-based Stelco – another Canadian flat-rolled steelmaker – have also authorized strikes. They are negotiating with the company past the June 30 expiration of a prior labor agreement.

“We continue to meet with the company in an effort to reach a deal,” USW Local 8782 said in an update to members.

A conciliation officer – appointed by the provincial Ministry of Labour – has been assigned to the talks. “The conciliation officer may help the parties to reach a deal,” the union said.

If Stelco and the USW cannot reach an agreement, an official report stating as much will be submitted to the Ministry of Labour. That report then starts a 17-day clock for the union to strike legally or for the company to legally lock out workers.

“We, as a committee, understand the frustration and concern the lack of information is causing. Things are changing every day, so any info given today may be obsolete tomorrow,” Local 8782 said. “We also know the markets are changing every day.”

Case in point: hot-rolled coil prices have fallen to their lowest point since December 2020. And most respondents to SMU’s surveys expect prices to continue to move lower.

Stelco did not respond to a request for comment from SMU on the matter on Sunday, July 10.

USW Local 8782 represents workers at Stelco’s Lake Erie Works in Nanticoke, Ontario. A second union, Local 1005, represents its Hamilton Works.

Lake Erie Works operates a blast furnace and a hot strip mill. The blast furnace at Hamilton Works has long been out of commission. But the mill continues to operate its “Z-line,” which has capacity to produce 470,000 tons of galvanized and galvannealed steel sheet per year.

Algoma and Stelco are important suppliers of flat-rolled steel not only to Canada but also to the upper Midwest and Great Lakes regions of the US.

Labor agreements between the USW and US steelmakers Cleveland-Cliffs and US Steel don’t expire until Sept. 1.

By Michael Cowden, Michael@SteelMarketUpdate.com