Algoma Steel contract talks break down

Talks between Algoma Steel and United Steelworkers Local 2251 appear to have broken down.

Friday night the company announced it had presented the negotiating committee with a “revised best and final offer” and the committee again refused to bring the offer to its membership for a vote.

“Algoma believes its offer to 2251 provides a highly competitive compensation package that is superior to many of the Company’s peers in the industry and includes numerous health and wellness benefit enhancements and protections offered by the Company in an effort to reach an agreement,” the company said in its media release Friday.

Algoma Steel and United Steelworkers Local 2251 contract negotiations had been proceeding following at 15-day extension that was negotiated on July 30.

The union’s negotiating committee indicated that a key issue with the cost of living adjustment (COLA) was addressed prior to the extension allowing the union to continue to negotiate.

“This extension demonstrates the willingness of the parties to work towards an agreement that provides fair and equitable improvements to wages and benefits and supports our collective future under the electric arc transformation,” said Michael Garcia, Algoma Steel president and CEO, in a company press release related to the extension.

The company’s newest media release outlines their “revised best and final offer;” including a guaranteed minimum wage and cost-of-living increase of 15.2% over the 4 years, including the most recent COLA, as well as increases to afternoon, night and Sunday shift premiums and a $6,000 signing bonus for established employees upon ratification.

The company offer also includes increases to major medical benefits, vision care and dental benefits along with an increase to the company contributions to the defined benefit contribution pensions by $1.00 per hour over the 4 years and an increase to the reduced earning caps for their short term and long term disability benefits according to the company.

The offer will also increase retiree health benefits, including increases in lifetime maximums for hearing aids and eye glasses.

“We have worked tirelessly over the last several weeks to come up with a monetary proposal that is seen by both the company and the union bargaining committee as fair, competitive, and affordable through all points of the steel cycle,” said Garcia in the most recent press release.

“We will continue our efforts to find a way forward that avoids a business interruption.”

Last week the union voted 91% in favour of a strike.

The union posted message on their website indicating, “There was a communique that was emailed to all members that have provided their email.”

Union President, Mike Da Prat, spoke with CTV News in response to the company press release. Da Prat has previously stated his workers deserve a better cost of living adjustment and now says this offer does not accomplish that.

"They (Algoma Steel) are trying to confuse the workers 'cause they're saying it’s over 15 per cent. No its not. The answer is its 5.5 per cent actual wage increase, and the rest is last year's COLA, and projected COLA going forward," said Da Prat

The extension of the current collective agreement between the union and Algoma Steel will expire on Aug. 15.

Story updated by Cory Nordstrom's reporting from the field.