Algoma Steel Makes Final Offer to Local 2251
07/30/2007 - Algoma Steel confirms that the company has tabled its final offer to United Steelworkers Local 2251.
Algoma Steel confirms that the company has tabled its final offer to United Steelworkers Local 2251.
The offer, which is a three-year agreement, features a $2000 signing bonus and approximately 13.2% wage increases by the end of three years. The wage increases include 3%, 2%, and 2%, respectively, in annual increases, plus an additional 1.4% annual estimated cost of living increase.
The offer also includes increased pension benefits of up to $217 per month for employees with 30 years of service; continued pension windows; and increased shift premiums. Additionally, the agreement features increased benefits for vision care, chiropractic care, hearing aids, and orthotics, as well as renewal of the profit-sharing arrangement.
"Acceptance of this offer by employees is an important part of moving forward,” said Algoma President and CEO Denis Turcotte. “We have all learned from past mistakes and we will not put the company at risk by making commitments today that we may not be able to afford tomorrow. The company offer will improve wages and benefits for all employees, while allowing Algoma to compete moving forward, providing secure employment for the future."
"We respect the right of employees to decide if the company's final offer is acceptable and we hope that all employees will exercise their right by showing up to vote, and doing so in support of the proposal," said Turcotte.
A representative from Algoma's new parent company, Chief Executive Officer of Essar Steel Holdings Limited, Mr. Jatinder Mehra commented on the offer, "This offer means higher wages, higher benefits, higher pensions, higher shift premiums, and a renewal of a very competitive profit sharing arrangement. Together, over the last five years, the management and employees at Algoma have built a strong and competitive company. Now is the time to decide to build on that achievement with new owners committed to the future."
A member of the Essar Group, Algoma Steel Inc. is based in Sault Ste. Marie, Ont. As a fully integrated steel producer, Algoma's revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.
