Stelco, USW Local 1005 Near Labor Deal, Avoid Strike

 “The strike deadline has been suspended. You should continue to attend work as scheduled,” Local 1005’s negotiating committee wrote in an update to members on Friday, Aug. 12.

Steelworkers at Stelco’s Hamilton Works had been in a legal position to strike as of 12:01 am on Tuesday, Aug. 16.

A prior labor agreement between the company and Local 1005 expired at the end of June. The two sides, which began negotiations on April 5, have continued talks well past that deadline.

Hamilton Works makes galvanized and galvannealed steel and has annual capacity of 470,000 tons.

USW Local 8782, another USW chapter, represents Stelco’s Lake Erie Works in Nanticoke, Ontario. That facility continues to produce hot metal and hot-rolled coil. Local 8782 will be in a legal position to strike as of 12:01 a.m. on Sunday, Aug. 22.

Stelco did not immediately respond to a request for comment on Sunday, Aug. 14.

Several steelmakers in the US and Canada are in the middle of contract negotiations with the USW.

USW members at Algoma, another Canadian steelmaker, will vote on whether to accept a new contract or to go on strike at the end of the month.

The union and US-based steelmakers US Steel and Cleveland-Cliffs are nearing the Sept. 1 deadline when prior labor agreements expire.

Market participants have kept a close eye on labor developments because of potential supply chain disruptions and because of the impact they could have an impact on prices.

A strike or lockout at a major mill could result in less supply and higher prices. Labor accords, in contrast, would preserve the status quo and potentially remove any risk premium baked into current prices.

By Michael Cowden, Michael@SteelMarketUpdate.com