Stelco, union reach early labor agreement

Canadian flat rolled steel producer Stelco Inc. has reached a tentative four-year labor agreement with United Steelworkers Local 1005, which represents 2,400 hourly employees at the company's Hamilton Steel facilities, more than one month before the expiration of their current contract. Canadian Press has reported that the agreement, reached after only three weeks of bargaining, sets out a wage increase of $1 to nearly $4 an hour over two years. It also includes an increase in life insurance benefits to pensioners, and a lump-sum retirement incentive of $20,000 for pension-eligible employees. "This agreement reflects that belief and will enable Stelco and all of its employees to work together, to pursue growth, and to generate value as we move forward,” said Stelco president and CEO Rodney Mott in a press release Thursday. A ratification vote is slated for June 21, and the contract would take effect after the previous contract expires July 31.