More Trouble for Stelco

Can anyone figure out what’s happening at Stelco these days?

According to the union:

USWA: 22 NOVEMBER 2004 – Steelworkers Give Stelco a Lifeline: Stelco Throws it Back: “The United Steelworkers has expressed shock and dismay at Stelco Inc.’s apparent lack of interest in retaining the company’s business with General Motors.

At meetings last week, Stelco had asked the Steelworkers’ Local 8782 to provide it with certain assurances so that it could retain its business with General Motors.

The company had agreed to meet with the union Sunday night to finalize an understanding with the union that would address certain union concerns regarding proceedings under the Companies Creditors Arrangement Act (CCAA) and the proposed deal with Deutsche Bank.

Despite Stelco’s failure to show up as promised, the union provided the company and Deutsche Bank with written documents providing the requested assurances to GM and addressing the union’s concerns.”

Meanwhile, back at the company web site:

Stelco announces failure to provide General Motors with security of supply

Expresses disappointment in union unwillingness to provide needed assurance

Stelco Inc. announced today that it had been unable to satisfy the conditions regarding the provision of security of supply required by General Motors, the Company’s largest customer, through 2005. The critical requirement was assurances from the USWA that there would be no work stoppage to assure continuity of supply for General Motors throughout 2005.

General Motors required such assurance by 8:00 a.m. this morning. Stelco provided to Local 8782 the General Motors position on Friday, November 19 and had simply requested the union agree to General Motors’ requirements. Unfortunately, the union placed unrealistic and unrelated demands on the Company as the price to maintain the General Motors business. As a result, General Motors did not receive by its deadline one of the two assurances it required as a condition of maintaining its business relationship with the Company.

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