Algoma Steel Inc. has reached tentative settlements with USWA Locals 2251 and 2724 on the terms of new labor agreements.

The current collective agreements are set to expire on July 31, 2004. The negotiating committees of both Locals are unanimously recommending approval of the agreements. Ratification votes on the tentative agreements are to be held over the next few days.

There are about 2,500 members in Local 2251, which represents production and maintenance employees, and about 500 salaried members in Local 2724, over 90% of whom had voted earlier in favor of strike action if the negotiating committees deemed it necessary.

Algoma President and CEO, Denis Turcotte, commented on the outcome, "We are pleased that we have reached tentative agreements without a labor disruption. As we move forward, we can continue to work cooperatively with our Unions to reposition the company for success."

The company intends to release the major items of the tentative agreements simultaneously with the information meetings being held by the Unions.

Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ont. Revenues are derived primarily from the manufacture and sale of rolled steel products including hot and cold rolled sheet and plate.