Agreement reached at Stelco's Hilton Works

CANADA: The IMF-affiliated USWA reports that on July 30 a majority of the unionised employees at Stelco Inc.'s Hilton Works in Hamilton, Ontario, voted to approve the terms of a new, four-year collective contract reached between the union and company management on July 26. The ballot result was 71 per cent in favour, with 3,621 out of more than 4,000 unionised workers voting. The agreement, which will be in place until July 31, 2006, contains a substantial increase in retirement pensions, with the pension for a 30-year employee taking early retirement to rise by 44 per cent over the four-year contract period. The pension increase was one of the union's key bargaining objectives and is the largest in the history of Hilton Works. With regard to wages, the cost-of-living allowance (COLA) and premiums, the existing $1.40 COLA float will be rolled into the wage scale immediately and will generate $1.20 an hour in further increases over the life of the roll-in. Also, future COLA payments will be rolled into the wage scale during the life of the agreement. A wage increase of 15 cents an hour will take effect in the second year of the agreement and night shifts will carry a 10-cent-an-hour premium. Tradespeople and crane operator positions will be upgraded. At Stelco's wholly-owned subsidiary Stelco-McMaster Ltée in Quebec, however, USWA members rejected by 98 per cent the company's "final" offer because it fell far short of the agreement reached at Hilton Works. Strike action began with the expiration of the existing contract, at midnight on July 31. The highly productive Stelco-McMaster plant produces billets, special quality bars and reinforcing bars for shipment to North American and offshore markets. Stelco Inc. is Canada's largest steel producer, with an annual steelmaking capacity of 6.2 million tons. Note: Figures are in Canada dollars, with the current exchange rate at 1 CAD = 0.634380 USD.