Steelworkers show 'frustration' but accept Bedrock deal, green light Stelco sale
Hamilton steelworkers approve contract terms on the new collective bargaining agreement
It wasn't exactly a ringing endorsement but United Steelworkers Local 1005 members have voted to accept a new collective agreement with Bedrock Industries, the company ready to take ownership of Stelco after a major restructuring deal to lift the steelmaker out of creditor protection.
Approval of the agreement by 1005 members was the last major obstacle in the way of the deal's approval.
Just 64 per cent of voting members voted Tuesday in favour of the contract with a 90 per cent membership turnout.
"The voting numbers aren't that good," said Gary Howe, President of United Steelworkers Local 1005. "Lake Erie's passed by 86 per cent so that goes to show there's a lot of frustration."
Lake Erie Works main plant was 86 per cent in favour of the agreement and Lake Erie Works Pickling Plant was 89 per cent in favour.
The 1005 workers were presented with agreement terms last Wednesday.
Howe told CBC he could tell people were anxious leading up to the vote.
"I think the vote was a good reception of you know, the frustration that people had," said Howe.
Nanticoke has 800 active members and about 1,000 retirees. Hamilton has 540 active members and 9,000 retirees.
Members of LOCAL 8782, the chapter representing Nanticoke, Ont., workers and retirees voted on the restructuring proposal last Friday.
There are differences in the two deals, for example, Hamilton's Stelco pensioners won't get their health benefits fully reinstated like the pensioners in Nanticoke.
The votes come just days ahead of when Stelco's sale plan will be put before a judge. This happens Friday and the opinion of the union locals' membership matters.
The judge in the court-supervised sale said last year he wouldn't sign off on the plan to sell Hamilton and Nanticoke until collective bargaining agreements are in place. With this last piece, the deal has the green light.
The province supports the agreement as well.
Once given court approval, there is a 21-day period where any outside parties can toss their name into the ring. At this time, no outside parties are expected to come forward.
Bedrock Industries plans to buy the Hamilton and Nanticoke operations, both newly converted to its old Stelco brand name after U.S. Steel Canada entered into Companies Creditors Arrangement Act (CCAA) protection.