Steel Mills
Stelco, USW Local 1005 Near Labor Deal, Avoid Strike
Written by Michael Cowden
August 14, 2022
Stelco and United Steelworkers (USW) Local 1005 have at least temporarily avoided a labor disruption at the Canadian steelmaker’s mill in Hamilton, Ontario.
The two parties are working toward an agreement on a new labor contract, details of which will be presented to union members on Monday, Aug. 15.
“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
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
American mills urge Trump to maintain no exceptions on steel tariffs
"We urge you to resist any requests for exceptions or exclusions and to continue standing strong on behalf of American steel," the companies wrote.
Cliffs CEO touts employee cash bonus for buying US-made vehicles
Cleveland-Cliffs Inc. has introduced a new employee incentive program to promote American-made vehicles, support domestic production, and strengthen US supply chains.
Auction of AHMSA assets is next step in bankruptcy proceedings
An inventory valuation of the assets of Altos Hornos de Mexico SA (AHMSA) has been completed. Local reports suggest an auction for the assets of the bankrupt steel company could come as soon as the end of this month.
US mills increase shipments in January
AISI reported a 4.1% rise in US steel mill shipments from December to January.
Reports: Algoma Steel halts US shipments, plans layoffs in wake of tariff war
Facing an uncertain tariff trade war, Algoma Steel took action this week, halting steel shipments to the US, laying off employees, and prepping for an unknown future, according to local media reports.