April 10, 2006 — The United Steelworkers (USW) responded to Gerdau Ameristeel's acquisition of Sheffield Steel Corp., where nearly 500 production workers are represented by the Union.

Leo W. Gerard, the USW International President, invited Grupo Gerdau to join the ranks of steel companies that have profited from partnering with the Steelworkers Union in North America. "A few years back, when dozens of North American steel companies were in bankruptcy, the USW took the lead in restructuring, and rescuing, the North American industry." said Gerard. "We proved our ability to work with the companies, by negotiating innovative, cost-saving labor agreements, and the industry is thriving today as a result."

Gerard emphasized that Sheffield Steel was just one of the companies that benefited directly from a partnership with the Union. Sheffield filed for bankruptcy protection in 2001, and the USW agreed to renegotiate labor contracts to provide cost savings to the company. In 2005, Sheffield reported a net income of $22.4 million on sales of $296.7 million.

The USW says its relationship with Gerdau's North American management has been strained since May 2005, when the company locked out 300 workers at its operations in Beaumont, Texas. Seven months later, the company ended the lockout after realizing a loss of $14 million, but labor troubles continue throughout the Gerdau Ameristeel operations.

Including the acquisition of Sheffield, the USW represents nearly 3,000 workers at Gerdau facilities across Canada and the United States, and half of them are currently trying to negotiate new labor agreements. Two additional contracts are set to expire this summer, and a strike could follow.

The USW represents 850,000 workers, in a range of industries across North America. More than 100,000 USW members are employed in the steel industry.