The United Steelworkers is pleased with Stelco Inc.'s agreement to not proceed with the sale of one or more of its subsidiaries, whose hourly employees are represented by the union.

The Steelworkers had advised Stelco’s Court Monitor of its concerns following the company’s press statement earlier this week, in which it stated that it was “proceeding with the sale of several of its subsidiary businesses.”

In a letter from law firm McCarthy Tétrault, the union has been told "Stelco will not enter into an agreement or understanding regarding the sale of any of the subsidiaries whose hourly employees are represented by the USWA during that period, and in any event no earlier than March 31, 2005".

The letter further noted that Stelco will proceed with the sale of its interest in Camrose and the possible sale of Stelpipe. In addition, the letter states that the company’s advisors will continue to evaluate bids that have been received for other subsidiaries, and that it will continue to meet with stakeholders to seek their input.

Full text of the letter is available through a link on the Steelworkers’ website.