Steelworkers on board with potential buyer for Essar Steel Algoma
City hall in Sault Ste. Marie said Essar Steel Algoma's unpaid municipal tax bill will hit $30 million by June. (File photo)
CTV Northern Ontario
Published Tuesday, April 11, 2017 12:08PM EDT
Last Updated Tuesday, April 11, 2017 2:51PM EDT
Members of largest union representing workers at Essar Steel Algoma have signed off on a potential buyer for the company.
United Steelworkers Local 2251 said 98.6% of members voted in favour of a support agreement.
When reached by CTV, Local 2251 president Mike Da Prat said he could not go into detail about who has expressed interest in acquiring the assets of Essar Steel Algoma.
Da Prat did confirm the entity is not the group of term lenders who have been working to purchase the company.
When asked about any proposals regarding pensions or salaries, Da Prat said he couldn't comment on specifics. He said a court imposed gag order prevents him from publically revealing any details.
“Everything we do is for the best of our membership,” said Da Prat. “We are balancing that with the need to keep the company going moving forward, but our membership is our top priority.”
Essar has been in the midst of the creditor protection process since November, 2015. Recently, a provincial judge granted the company a one month extension, in effect until April 30. The move gives the company more time as it restructures.
Local 2251 represents about 2,300 workers at the company.