Steelworkers Adopt Wait and See Outlook on Proposed Ipsco Buyout
05/07/2007 - The United Steelworkers are viewing the announced US $7.7-billion purchase of Ipsco by Swedish Steelmaker SSAB Svenskt Stal marks as another point in their growing concern about the rapid globalization of the steel industry.
The United Steelworkers are viewing the announced US $7.7-billion purchase of Ipsco by Swedish Steelmaker SSAB Svenskt Stal marks as another point in their growing concern about the rapid globalization of the steel industry.
"As in any take-over situation, we are concerned about maintaining employment levels by enhancing value-added operations in Canada,” said USW Western Canada Director Steve Hunt. “Our union is currently assessing SSAB to learn more about how it operates, about its labor relations record, and its record on the environment."
Hunt said the USW has expected an announcement about Ipsco ever since company President and CEO David Sutherland said that the company was open for offers.
"Members are waiting to see how a buyout will shake out. We just don't know if this deal will go through or if there will be further bids on Ipsco from companies elsewhere," said Mike Park, USW staff representative for more than 800 members of local 5890 who work at Ipsco Regina's operations. "Our members know that they work in very efficient and profitable operations and feel confident their plants will compete and remain open, no matter what happens."
USW Local 6673 has 240 members at the Ipsco pipe mill in Calgary, which manufactures tubing for Alberta's booming oil and gas sector.
"Our members put out the best products on the market," said USW area supervisor Keith Turcotte. "They have worked to make the plant one of the most efficient found anywhere, so there should be no surprises for them if any new buyer operates in a straight-up fashion."
Until recently Ipsco was a Regina-based company. Now headquartered in Lisle, Ill., it has 14 operations in B.C., Alberta, Saskatchewan, Manitoba and Ontario, and 14 operations in the United States. Workers at three U.S. operations are also members of the USW.
The Steelworkers have 280,000 members working in all sectors of the Canadian economy. The USW is North America's largest industrial union with over 850,000 active members.
