NEW YORK Essar
Steel Algoma Inc. might face a labor disruption at its
flat-rolled facility in Ontario at the start of August, the
company said June 19.
The Sault Ste. Marie,
Ontario-based steel producer is negotiating a new contract with
members of United Steelworkers union Local 2251, which
represents some 79 percent of employees at the mill. The
previous three-year labor agreement, ratified in August 2010,
expires July 31.
"The company may be
unable to successfully negotiate future collective bargaining
agreements without any labor disruption," Essar Steel Algoma
said in its fiscal 2013 financial statement. "Our customers, or
companies upon whom the company is dependent for raw materials,
transportation or other services, could also be affected by
steelmaker, which posted a fifth consecutive quarterly loss in
the three months ended March 31, confirmed that it would
receive access to up to $50 million in funds to reinforce its
liquidity position (
amm.com, May 9).
The company added that
the labor disruptions could also result in a "significant loss
of production and sales" and have a "material adverse effect"
on its financial condition or operations.
Neither the company
nor a union official could be reached for comment.
Essar Steel Algoma has
a raw steel production capacity of some 4 million tons per year
making a variety of slab, plate and sheet products.
Labor negotiations at
Pittsburgh-based U.S. Steel Corp.s Lake Erie operations,
also located in Ontario, have led to a lockout of some 1,000
union workers since the end of April (
amm.com, April 29).