Open / Close Advertisement

Steelworkers Local 8782 Issues Strike Notice to Stelco

07/28/2005 - The United Steelworkers' Local 8782 has sent a letter to Stelco Inc. CEO Courtenay Pratt, informing him that, as of Wednesday, July 27 2005, the union is serving 90-day strike notice.

“The decision to issue the notice only creates further uncertainty among employees, retirees, customers, suppliers and the communities in which we operate. The last time the Local took this step, the company lost the business of General Motors, its largest customer. That business has not been regained. The cost of this loss to the company, and particularly to Lake Erie's business, has been significant.

“The company is open to all discussions on its restructuring plan outline except with respect to suggestions that would change the balancing of stakeholder interests which we are required to do by law and which we have endeavored to do in the most responsible manner.

“The Stelco plan asks for no concessions from employees or pensioners. In addition, it provides for the full funding of the deficiencies in the pension plans. As well, the plan envisions the conversion of a very significant portion of existing debt into equity, and extends the maturity of the remaining debt well into the future. We believe that these and other provisions of our plan outline are fair to employees, retirees, and the people of the communities in which we operate.

“There are other places and ways in which the Local leadership could discuss its concerns about the plan outline itself or the restructuring process in general. The public record clearly demonstrates the number of occasions on which the Company has invited and urged the leadership to participate in and contribute to the search for a positive outcome for the members of Local 8782 and for all our stakeholders. We have always stated that the Local was a critical participant in this process.

“There is, and for the past 18 months there has been, another way to address the concerns of our employees and retirees. That way consists of the meaningful discussions that the company has tried to generate throughout the restructuring process. No one has a monopoly on concern for our employees, retirees and other stakeholders. As I've said repeatedly, we all want the same goal. It's time to work together if we are to achieve it.

“We will only achieve that goal if everyone wants it and works for it. It's just not possible for every group to get everything it wants because the pie isn't big enough. As well, Stelco is the only participant in the process with a legal obligation to take into account the interests and competing demands of other stakeholders.

“I once again urge the Locals' leadership to reconsider the path of confrontation it alone has chosen, to tone down the rhetoric, to resume discussions, and to ease the uncertainty and instability surrounding this last push for a positive outcome for employees, retirees and other stakeholders.”

Portions of Statement by Courtney Pratt,
Stelco President and CEO

The United Steelworkers' Local 8782 has sent a letter to Stelco Inc. CEO Courtenay Pratt, informing him that, as of Wednesday, July 27 2005, the union is serving 90-day strike notice.

"After meetings with my membership, and informing them that the restructuring plan you have endorsed is not negotiable, it is with deep regret that I must inform you that the Local 8782 Negotiating Committee, executive and membership have given notice to Ford and Chrysler, and now to you, that we are serving 90-day notice of our intention to strike," said Local 8782 President Bill Ferguson.

"After 18 months of CCAA discussions and 12 months of contract negotiations, it has become painfully apparent to my membership and the local's leadership that you do not have any intention to negotiate with us over a meaningful restructuring of Stelco that will lead to a viable long-term solution to Stelco's problems."

Ferguson added that he still hopes Pratt will change course and engage in serious negotiations on both the restructuring plan and a collective agreement.