Stelco Inc. employees in Nanticoke and Hamilton have voted in favour of a new collective agreement proposed by potential buyer Bedrock Industries Group LLC.
Nanticoke employees, who are part of United Steelworkers Local 8782 and work across two plants, voted 86 per cent and 89 per cent in favour of the new agreement on Friday, while Hamilton employees, who are part of United Steelworkers Local 1005, voted 64 per cent in favour on Tuesday.
Read: Stelco’s long battle on the pension precipice
The new collective agreement for Nanticoke employees includes an additional $1.33 per hour per worker once the company exits Companies’ Creditors Arrangement Act restructuring, according to a document on the union local’s website. Employees would also receive an increase to their cost-of-living allowance, and those with 30 or more years of service would receive 15 weeks of extended paid vacation in addition to their regular allotment.
Hamilton employees would also see a slight increase in pay and short-term disability payments and would receive 18 months’ notice if the company decided to close a coke oven, noted the CBC last week.
Read: Stelco sale nearing potential resolution as workers vote on collective agreements
Gary Howe, president of United Steelworkers Local 1005, offered assurances to Hamilton retirees last week that their pensions will not be reduced. He also noted that, while health benefits haven’t been fully reinstated, they have secured $20 million a year over 10 years for benefits.
A news release from Local 1005 also stated that the judge overseeing the sale to Bedrock, which was announced in September 2016, has indicated he won’t sign off on the plan until collective bargaining agreements are in place. If he does sign off in a court hearing on June 9, Stelco could exit CCAA protection this month.
Read: Union optimistic U.S. Steel agreement could lead to ‘good final deal’ for retirees
In April 2017, the majority of salaried retirees and employees voted in favour of Stelco’s restructuring plan. Under the plan, the company will no longer be responsible for the salaried group’s pension plans and other post-employment benefits, while Bedrock Industries will contribute $30 million among all employees’ pension plans, with additional funding coming from other financial vehicles created by the transaction.
Read: Salaried employees, retirees approve Stelco’s restructuring plan