Business Daily from THE HINDU group of publications
Friday, Aug 10, 2007
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Business Daily from THE HINDU group of publications Friday, Aug 10, 2007 ePaper |
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Corporate
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Overseas Investments Essar Steel settles workers’ issues at Canadian plant
Phalguna Jandhyala New Delhi, Aug. 9 Essar Steel Holdings, the subsidiary of Essar Global, has arrived at a settlement at its recently acquired Algoma Steel, Canada sorting out the issues that had threatened a possible work stoppage by the United Steelworkers union. The union voted to approve a salary hike for the workers. When contacted, a spokesperson from Essar Steel confirmed the development. “The company confirms that both United Steelworkers voted in favour of the offer that was offered to them last week.” The spokesperson added that collective agreements have been ratified with Local 2,724 (salaried personnel) and Local 2,251 (hourly personnel) for a three-year term. According to the terms of the agreement, Essar Steel has agreed to increase wages by 3.5 per cent every year besides also agreeing to improve medical benefits and better deal after retirement. “This agreement is a crucial part of Algoma’s long-term strategy to stay competitive and ensure continued prosperity for both our owners and the community,” the spokesperson added. The Essar Group had completed the acquisition of the Canadian steel company for $1.73 billion in an all-cash deal in June this year. Ontario-based Algoma is the third largest steel company in Canada, accounting for 15 per cent of the steel production in that country. In 2006, it produced 2.4 million tonnes of steel. Essar expects Algoma to bring a whole new dimension to the marketing operations in North America. Algoma will have access to Essar’s range of value-added products in the automobile, white goods, construction and engineering industries. The enlarged business would concentrate on further reducing costs of production, widening the product range and developing new applications.
More Stories on : Overseas Investments | Steel | Trade & Labour Unions
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