Algoma Steel and USW L2251 Reach Tentative Agreement
August 23 2022 - 3:58PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or the
“Company”) and United Steelworkers Local Union 2251 (“2251”), the
union representing Algoma’s hourly employees, announced today that
the parties have reached a tentative collective agreement. The USW
Local 2251 bargaining committee is unanimously recommending the
offer and the parties have agreed to extend the current contract
until August 30, 2022, to allow for a ratification vote to occur.
Voting is scheduled for August 25 and August 29, 2022. The
Company will release details of the tentative agreement after the
Union has held its information meetings with its members.
USW Local 2251 President Mike DaPrat remarked,
“We are pleased to inform our membership that we have been able to
negotiate a fair agreement with Algoma Steel. We believe that this
agreement will serve our needs for the next five years. The
negotiating committee wishes to thank its members for their
continued support throughout the process.”
Commenting on the tentative agreement, Algoma
President and Chief Executive Officer Michael Garcia said, “We are
very encouraged to have reached an agreement with our union
partners on a settlement that will allow us all to focus on serving
our customers safely and reliably while transforming our business
to electric arc steelmaking. This agreement avoids disruption to
our operations and directs our attention to continuing
the exciting momentum we have generated together on course to
becoming a leading provider of green steel in North America.”
This agreement follows the agreement with the
United Steelworkers Local 2724, the union representing its
technical, professional, and front-line supervisory employees
ratified on July 26, 2022.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding
an anticipated new labour agreement with Algoma’s hourly employees,
and Algoma’s transition to electric arc steelmaking, its future as
a leading producer of green steel, and Algoma’s expected enhanced
long-term profitability, cost-cutting initiatives, modernization of
its plate mill facilities, transformation journey, investment in
its people, processes, optimization and modernization, and growing
capability and courage to meet the industry’s challenges. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are
predictions, projections, and other statements about future
events that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document. Readers should
consider the risks and uncertainties set forth in the section
entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in Algoma’s Annual Report on Form 20-F,
filed by Algoma with the Ontario Securities Commission (the “OSC”)
(available under the company’s SEDAR profile at www.sedar.com)
and with the Securities and Exchange Commission (the “SEC”)
(available at www.sec.gov), as well as in Algoma’s current
reports with the OSC and SEC. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Algoma assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
About Algoma Steel Group
Inc.
Based in Sault Ste. Marie, Ontario, 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.
About United Steelworkers Local
2251
A United Steelworkers Local representing 2171
hourly workers at Algoma Steel Inc.
For
more information contact: |
|
Brenda Stenta |
Mike
DaPrat |
Manager Communications & Branding |
President |
Algoma Steel Group Inc. |
USW
L2251 |
Phone: 705.206.1022 |
705.942.3900 |
E-mail:
brenda.stenta@algoma.com |
E-mail:
pres2251@usw2251.ca |
Algoma Steel (NASDAQ:ASTL)
Historical Stock Chart
From Apr 2024 to May 2024
Algoma Steel (NASDAQ:ASTL)
Historical Stock Chart
From May 2023 to May 2024