Stelco Inc. announced that it has been unable to satisfy the conditions regarding the provision of security of supply required by General Motors, the company's largest customer, through 2005.

General Motors’ critical requirement was for assurances from the USWA that there would be no work stoppage, thus assuring continuity of supply throughout 2005. General Motors’ final deadline for such assurance was 8:00 a.m. Monday morning.

Stelco provided the General Motors position to Local 8782 on Friday, Nov. 19, and had requested the union agree to General Motors' requirements. Unfortunately, the union placed unrelated demands on the company as a condition of committing to the assurance required by General Motors. As a result, General Motors did not receive by its deadline one of the two assurances it required as a condition of maintaining its business relationship with the company.

General Motors had indicated on November 19th that failure to provide such memorandum of understanding would leave it with no choice other than to source the remainder if its 2005 supply with another producer.

Courtney Pratt, Stelco President and CEO, said, "This is a very difficult situation for the company and all its stakeholders. Contrary to the union's allegations, and as the public record clearly demonstrates, the company has pursued every possible opportunity to engage the union in the meaningful discussions that could have provided our largest customer with the security it has requested for months. We have been prepared to meet right to the last minute in this matter. But as recently as last evening, the union made clear that it wanted to tie a large number of unrelated issues to the simple provision of security of supply General Motors required by this morning."

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.