United Steelworkers Ontario/Atlantic Director Wayne Fraser said Thursday that the 450 members of Locals 8794 and 7940 have rejected by over 90% the offer by Heico Companies LLC. At the time of the vote, Heico had already locked out employees at the former Ivaco steelmaking facility in Hawkesbury.

"This company could not possibly have expected our members to accept the kind of concessions it is demanding," said Fraser. "Heico has decided in favor of locking our members out of their jobs instead of working with us on a realistic settlement."

Heico is pressing for free contracting out and a different pension plan for new employees, which will result in two-tier pensions. "The company also threatened to close parts of the operation and offered absolutely no wage increases to our members," said Fraser.

Workers had voted in late August to take strike action if no agreement was reached by September 16. "It became obvious by late Wednesday that there was no point in continuing through to Friday," said Richard Leblanc, President of Local 8794, representing employees in the meltshop, who voted 93% to reject the offer. "The company then locked us out." Local 7940 (rod mill) members voted 97.8% against the final offer.

Fraser said that, despite the lockout, the union remains eager to return to negotiations, "as long as the company is prepared to actually negotiate and not throw down demands that it knows will be rejected."

The union welcomed Heico Companies' bid last year to purchase Ivaco's operations, when Heico said it would honor Steelworker contracts and pay arrears in pension contributions as well as fund pensions going forward.