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Stelco and Union Locals Agree on Process for Talks

06/24/2004 - Stelco Inc. has reached an agreement with its USWA Locals establishing a framework for discussions on restructuring and other matters between now and September 30, 2004.

Stelco Inc. has reached an agreement with its USWA Locals establishing a framework for discussions on restructuring and other matters between now and September 30, 2004.

Stelco-USWA Locals Agreement

Under the agreement, the parties identified the process that will govern discussions of such matters as the Lake Erie collective bargaining negotiations and restructuring issues.

The parties have also reached an agreement on how grievances and arbitrations will be handled during this interim period. In addition, the parties have agreed on a process to resolve the Item 16 grievances.

As part of the agreement, Stelco and the Lake Erie USWA Local 8782 agree to provide 90 days prior written notice of any potential lockout or work stoppage, respectively.

The agreement, which was presented to the Ontario Superior Court of Justice on Wednesday morning, June 23, provides the terms and conditions on which Stelco and its USWA Locals shall be governed in the period up to September 30, 2004.

Courtney Pratt, Stelco's President and Chief Executive Officer, said, "This agreement is a positive step forward and a win-win for everyone concerned. The company and its unions have an agreement as to how negotiations and discussions will proceed. Our customers have the certainty of supply they need going forward. And all of our stakeholders have the knowledge that the restructuring process itself can proceed.

"The Judge said this agreement represents significant progress and we agree. George Adams made a very positive contribution to this process. The cooperation shown by all sides can and must carry over into the upcoming discussions. As the Judge noted, we can now proceed to the exchange of information and negotiation. We owe it to all our stakeholders to make the most of this opportunity."

Stelco Inc. is a large, diversified steel producer involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. Consolidated net sales in 2003 were $2.7 billion.