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Canadian Steelworkers ratify agreement with Gerdau

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4 August, 2006Settlement delivers wage and pension increases, improved health and safety and signing bonuses.

CANADA: After just two weeks of negotiations, members of United
Steelworkers (USW) Local 8740 at Gerdau Ameristeel's Manitoba Metals in St. Andrews ratified a new five-year labour contract covering 87 workers in the scrap prep facility that serves as a feeder for the company's Selkirk mill.

Worker gains under the St. Andrews agreement includes:

  • A $750 signing bonus
  • Annual wage increases totalling $2.15 to $3.55 an hour
  • A 30 per cent pension increase
  • Improved health and safety language
  • The creation of new maintenance positions that are likely to create new hiring
  • Company-provided work clothing and outerwear
  • A new arbitration process to improve grievance handling
  • A 30-day, company-sponsored training program for health and safety committee members


The relatively quick settlement with Canadian management comes in stark contrast to Gerdau's business practices in the U.S. where seven labour agreements with the company have expired and a recent ruling in favour of USW members found Gerdau to be in violation of its labour agreement.

"We have had nothing but problems with Gerdau's management since they have acquired steelmaking properties in the United States, " said USW International President Leo W. Gerard referring to Gerdau's refusal to pay profit sharing to workers at one of its Kentucky plants. The USW fought the company and won more than $ 2 million in back pay for its members.

"How can Gerdau have decent relations with our union in Canada and get along with unions in its home country of Brazil while refusing to deal in good faith with its U.S. workers?

"It's time that Gerdau's chairman and CEO Jorge Johannpeter Gerdau come to the U.S. and get involved in negotiations before his Tampa management leads his company to ruin," said Gerard.

The United Steelworkers represents some 3,000 workers at 13 Gerdau
locations in North America.