Talks Begin but Relations Still Frozen in Canadian Steel Lockout of USW Members

Movement finally occurred in the ten-and-a-half-month lockout by U.S. Steel Corp. of United Steelworkers (USW) Local 1005 members in Hamilton, Canada, but too little of it by the concession-seeking company by all accounts. The American steelmaker tabled an offer one week ago, but little in it has changed from US Steel’s original demands.

The lockout of 900 steelworkers in the province of Ontario began on 7 November 2010 when USW Local 1005 refused to put a concession-laden proposal before proud union members. US Steel is demanding closure of the defined benefit plan to new hires, an end to pension indexing for 9,000 retirees, cuts to cost-of-living adjustments, and elimination of two weeks vacation time.

Negotiations commenced on 13 September for the first time since the lockout began and Hamilton Works managers tabled the offer. The union took it to an information meeting on 21 September, but Local 1005’s Executive Committee reviewed it days earlier, and passed a resolution declaring it “substantially the same as the offer presented prior to locking the workers out on November 7, 2010, as concerns the demands to give up indexing of pensions and permitting new hires to go into a defined contribution plan instead of being part of the defined benefit plan.”

Local 1005’s committee also said parts of the new offer actually “make it worse,” proving “that (U.S. Steel) continues to refuse to bargain in good faith.”

A major sticking point reportedly is the offer contains call-back language in which the company will only re-start certain operations with a very limited number of workers. The new offer also contains a modest ratification bonus.

USW Local 1005 and U.S. Steel are expected to continue talks under the guidance of provincial mediator Simon Clark.