The war of words continues between Essar Steel Algoma and United Steelworkers Local 2724.
Public talk is usually minimal during contract negotiations, but Essar Algoma and its salaried workers, who have been talking a new deal for the past six weeks, have gone public with their message three times in the past week.
A week ago it was Local 2724 issuing their view on the slow pace of negotiations following its strike authorization vote. Monday it was Essar Algoma putting out a “negotiations update” through its corporate Internet blog and late Tuesday afternoon it was 2724 responding to the company’s update.
Three-year contracts between Essar Algoma and its more than 3,000 unionized employees, represented by USW Local 2251 and Local 2724, expire in less than three weeks, in 17 days, at 12:01 a.m. Aug. 1.
Despite conflicting messages on what has transpired both the company and its salaried workers remain talking in a downtown Sault Ste. Marie hotel as bargaining crunch time approaches.
“The entire update is one of Essar trying to put a pretty face on some very ugly, regressive proposals,” said Ian Kersley, president of Local 2724, representing nearly 600 supervisory and technical personnel within Essar Algoma.
“The owners of Essar are trying to turn back the clock on employee rights.”
Essar’s message Monday was that it needs to “amend work terms” with its front-line supervisors, represented by 2724, as current contractual restrictions are restricting supervisory mobility and creating operating inefficiencies.
Company proposals for its salaried workforce, the blog lso contain some provisions for shared services and sharing tasks among the global Essar Group of companies, where it is most economical.
No current employee’s job would be affected by shared services, it stated, competitors use such a strategy to reduce costs … “what we are seeking is a level playing field.”
“We have made the company plenty of money in recent years under the existing language,” said Kersley, who added his membership was “extremely angry” with the company update.
“The steel market is dictating the company’s bottom line (a nearly $400 million loss this past fiscal year) not workforce performance … Their concerns can be addressed through existing language adjustments, wholesale change is not necessary.”
The shared services proposal, he said, is “simply exporting good-paying Canadian jobs offshore.”
Kersley claims that information technology work his membership should be doing is now being done in India, as well as some engineering, while out-of-country contract workers have been imported to Essar Algoma and are doing 2724 tasks.
“They say nobody will lose their job as a result of shared services but they cannot guarantee that you won’t be moved elsewhere within the organization to do another task,” said the 2724 president,
While he didn’t want to elaborate too much on bargaining issues, Kersley did say the company is seeking an additional eight hours a week out of its supervisors, from 40 to 48 hours a week, putting them “on call” for rest of the time, with no compensation for overtime.
“The bottom line is that the Ruia family (which controls the Essar Group conglomerate) and Essar bought Algoma Steel to make money and they are making it clear if it means taking away employees’ rights, curtailing their family life, and exporting jobs from the community, then that price must be paid in Sault Ste. Marie for Essar’s increased profit.”
While Local 2251, representing more than 2,500 hourly production, service, maintenance and clerical employees, endorsed an asset integrity agreement with the company last week, in the event of a labor disruption, Local 2724 did not.
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