Stelco fails to provide General Motors with supply guarantee

Stelco fails to provide General Motors with supply guarantee

According to the statement released by Hamilton-based steel producer Stelco Inc, the company has failed to satisfy the conditions regarding provision of supply guarantee required by General Motors (GM), Stelco's largest customer through 2005. According to the memorandum of understanding (MoU) between the two companies, there would be no work stoppage to ensure continuity of supply. However, due to the disagreement between Stelco and the union United Steel Workers of America (USWA), Stelco failed to meet the condition in the MoU. Upon this development, GM officials announced that they had no choice other than to meet the remainder of its 2005 supply through another producer.