The United Steelworkers said that it is prepared to work with Stelco Inc. to develop a plan based on full adherence to the union's seven principles for restructuring and on new labor agreements for Locals 8782 (Lake Erie), 5220 (AltaSteel) and 5328 (Stelwire), that allows Stelco to successfully emerge from bankruptcy protection under the Companies' Creditors Arrangement Act (CCAA).

"The union has argued consistently that Stelco should not be undervalued and we will not support any bids that don't recognize this," said Steelworkers' National Director Ken Neumann. "For this reason, Stelco's failure to complete the capital-raising process provides the company with a unique opportunity.

"We are highly confident that a plan can be developed that keeps Stelco's highly profitable subsidiaries as part of the company, ensures the fair treatment of all stakeholders, particularly the most vulnerable, and sets the stage for creating a long-term viable and competitive company."

Local 8782 President Bill Ferguson added: "If the company is prepared to engage the union as a full and equal participant, and keep the company together, we will roll-up our sleeves and get it done."

Scott Duvall, president of Local 5328 said: "The future for our members and retirees is too important to not participate in the process to establish a firm foundation for the continuation of steel-making and manufacturing in Canada."

Established last November, and agreed to by all Steelworker local unions at Stelco, the seven union principles are that:

1. Stelco must be restructured as one company, not sold off in parts.
2. Restructuring must be accomplished without concessions from members or retirees.
3. There must be plan to secure the pension benefits of members and retirees.
4. The company must commit to substantial reinvestment into the business and to continue to operate its facilities.
5. The company must be financially structured in such a way that it is viable for the long term.
6. The company must have a business plan that allows it to be successful and a management capable of carrying it out.
7. The company must commit to work with the union and its members in a constructive and respectful manner.

Source: United Steelworkers of America