In a joint statement, the Canadian steelmaker and United Steelworkers Local 2251 president Mike DaPrat said the bargaining committee is recommending that union members ratify the agreement. 

“We are pleased to inform our membership that we have been able to negotiate a fair agreement with Algoma Steel. We believe that this agreement will serve our needs for the next five years,” DaPrat said.

The union and the company also agreed to extend the previous contract to 30 August, allowing time for a ratification vote. That vote will take place Thursday and Monday. 

The potential for a work stoppage appeared to be on the horizon, with the union prepared to call a strike and the company in legal position to lock out workers. Union members were set to take a vote on what was called the last offer from the company next week.

However, the bargaining team was urging union membership to reject it. 

Algoma president and chief executive Michael Garcia said the tentative agreement staves off a work stoppage. 

 “We are very encouraged to have reached an agreement with our union partners on a settlement that will allow us all to focus on serving our customers safely and reliably while transforming our business to electric arc steelmaking,” he said.  

“This agreement avoids disruption to our operations and directs our attention to continuing the exciting momentum we have generated together on course to becoming a leading provider of green steel in North America.”