Bedrock Industries one step closer to Stelco takeover

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U.S. firm Bedrock Industries is one step closer to becoming Stelco’s new owner after a tentative agreement was reached between the company and members of the Lake Erie steelworkers union.

Bill Ferguson, president of United Steelworkers Union Local 8782 which represents workers in Nanticoke, says they still have “a mountain of paperwork to go through” but have scheduled meetings on May 30 and 31 to present the details of the agreement to members.

Local 1005, representing Hamilton workers, says they have a “framework for agreement” which, according to president Gary Howe, will likely be presented to members on Wednesday.

The announcements is a sign of significant progress in approving the restructuring of Stelco with potential owner, Bedrock Industries. The judge overseeing the sale has said that collective agreements with the unions need to be in place before he will allow Bedrock to take over the company.

The agreements come just two weeks before a scheduled sanction hearing to approve the restructuring plan on June 9.

Both Stelco plants in Hamilton and Nanticoke have been operating under court-supervised creditor protection since September 2014, under terms of the Companies Creditors Arrangement Act.