USWA Local 8782 has issued 90 days notice of a potential strike at Stelco Inc.'s Lake Erie facility. The notice is required under the June 23rd Agreement between Stelco and its USWA Locals.

Courtney Pratt, Stelco President and CEO, said, "We are extremely disappointed that the Local would take this step only two days after it agreed to extend the Agreement till November 26, 2004. Having a clear 90 day window to any strike action is important to our customers.

"We will take all steps necessary to preserve the interests of our valued customers in light of this damaging action. We are contacting and working with them to provide as much stability, certainty and information as possible during this period.”

In reviewing its available options in the wake of the USWA notice, Stelco concluded that it has no choice but to terminate the June 23 Agreement. The company provided the Locals with the required seven days notice of its decision on Friday, Oct. 1.

"I'm surprised that the Local would take this step at this time. The company has spent months working to initiate and to advance the dialogue on issues that affect the future of the company and all of its stakeholders, including our unionized personnel. We have recently made what I thought was progress in our discussions with the USWA. We have addressed a number of irritants to the union Locals through what has been constructive cooperation during recent weeks.

"The company has worked hard to advance this process in the face of continuing legal challenges and delays. But today's action by the Local throws an obstacle in the way of meaningful progress towards our goal of preserving jobs, providing certainty to our pensioners and ensuring Stelco's viability in all market conditions. It raises unnecessary concerns among our customers, concerns that can only be to the detriment of all stakeholders.

"As I've said repeatedly, Stelco can achieve a positive outcome to its restructuring process if all parties work together and want it to happen. I hope the Local will keep in mind the legitimate interests of all stakeholders in the coming weeks."

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.