Stelco Sale Wins Support of Salaried Employees
04/20/2017 - A Canadian steelmaker said it now has handshake agreements with salaried employees and retirees on a proposed acquisition plan.
In a statement Wednesday, Stelco said salaried employees and retirees have agreed in principle to terms related to pensions, healthcare benefits, and termination and severance claims, and will support its reorganization plan.
Stelco has been operating under creditor protection for more than two years, but is continuing to work toward a deal to be sold to U.S. investment firm Bedrock Industries.
"Momentum continues to build towards this great company having an opportunity to re-emerge as a strong, independent Canadian steel producer. We are getting closer to the best – and only – outcome that balances the realities of the situation with the interests of the many stakeholders," Bill Aziz, Stelco’s chief restructuring officer, said in a statement.
Others involved in the reorganization, including the province of Ontario, have said they’ll support the plan. But Stelco is still seeking new labor agreements with two United Steelworkers locals, which are key to advancing the sale, reports The Hamilton Spectator.
Gary Howe, president of one of the locals, told the newspaper that no progress has been made in contract negotiations. The union sent contract proposals to Bedrock last week, but it has yet to receive a response.
Stelco has been operating under creditor protection for more than two years, but is continuing to work toward a deal to be sold to U.S. investment firm Bedrock Industries.
"Momentum continues to build towards this great company having an opportunity to re-emerge as a strong, independent Canadian steel producer. We are getting closer to the best – and only – outcome that balances the realities of the situation with the interests of the many stakeholders," Bill Aziz, Stelco’s chief restructuring officer, said in a statement.
Others involved in the reorganization, including the province of Ontario, have said they’ll support the plan. But Stelco is still seeking new labor agreements with two United Steelworkers locals, which are key to advancing the sale, reports The Hamilton Spectator.
Gary Howe, president of one of the locals, told the newspaper that no progress has been made in contract negotiations. The union sent contract proposals to Bedrock last week, but it has yet to receive a response.
