Algoma labor agreement tied to EAF conversion

Algoma Steel Group Inc., based in Sault Ste. Marie, Ontario, says it has reached a tentative agreement for a new labor contract with United Steelworkers (USW) Local 2724, the union that represents what it calls its “technical, professional and frontline supervisory employees.”

The current collective agreement expires at the end of this month. Ratification votes have been scheduled for the next several days. Algoma says it will not release details of the tentative agreement until after the union has held its information meetings.

Algoma President and CEO Michael Garcia says the agreement is helpful as the steelmaker prepares to convert its Ontario complex from being a basic oxygen furnace (BOF) producer to becoming a scrap-fed electric arc furnace (EAF) operator.

“We are pleased that we have reached a tentative agreement with our salaried union local that provides an economic package that is acceptable to both parties and sets out the process to transition the workforce to electric arc steelmaking,” Garcia says. “We look forward to continuing our work together as we navigate Algoma’s transformation, positioning the company for a secure, sustainable future as a leading producer of green steel.”

Discussions also are ongoing between Algoma Steel and hourly employees represented by USW Local 2251. On that front, Algoma says it “looks forward to reaching an agreement before the contract expires on July 31, 2022, ensuring the continuation of the company’s forward momentum.”