Mr. Michael Garcia reports
ALGOMA STEEL CONFIRMS USW LOCAL 2251 AGREE TO TAKE OFFER TO EMPLOYEES FOR A VOTE
Algoma Steel Group Inc. says United Steelworkers Local 2251 has agreed to take the company's last offer to a vote by employees in the affected bargaining unit. Operations will continue in the ordinary course during the voting process, and the union has agreed to provide advance notice to the company to allow for a safe and orderly shutdown of operations in the event the union instructs employees to go on strike.
Algoma president and chief executive officer Michael Garcia commented: "We respect the collective bargaining process, and are pleased that our employees will have their say on a matter of such critical importance to their livelihoods, the lives of their families and fellow community members. The company has offered a non-concessionary, top-of-market wage and benefit package, which includes a 5.5-per-cent wage increase, continuation of [cost-of-living allowance], significant improvements in pensions and benefits for employees, and enhanced retiree benefits over a four-year term that delivers the stability needed to ensure a successful transition to electric arc steelmaking. A signing bonus is also included contingent upon no disruption to operations and uninterrupted shipments to our customers."
He went on to say, "If ratified, this agreement will help to secure our collective future, provide for sustained profitability even at the bottom of the steel cycle and allow us to maintain the phenomenal momentum we have generated together since emerging from [Companies' Creditors Arrangement Act]."
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ont., Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. With a current raw steel production capacity of an estimated 2.8 million tons per year, Algoma's size and diverse capabilities enable it to deliver responsive, customer-driven product solutions straight from the ladle to direct applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in Canada and Midwest USA and is the only producer of plate steel products in Canada. The Company's mill is one of the lowest cost producers of hot rolled sheet steel (HRC) in North America owing in part to its state-of-the-art Direct Strip Production Complex ("DSPC"), which is the newest thin slab caster in North America with direct coupling to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful improvements over the last several years that are expected to result in enhanced long-term profitability for the business. Algoma has upgraded its DSPC facility and recently installed its No. 2 Ladle Metallurgy Furnace. Additionally, the Company has cost-cutting initiatives underway and is in the process of modernizing its plate mill facilities.
Today Algoma is on a transformation journey. Algoma is investing in its people and processes, optimizing and modernizing to secure a sustainable future. Our customer focus, growing capability and courage to meet the industry's challenges head-on, position us firmly as your partner in steel.
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