Ivaco shutting
"This is regrettable and will no
doubt have long-term consequences
melt shop in July
on the future of Ivaco, its employees
accepted.”
richard.mahoney@eap.on.ca
and the community.”
Inhisletter,Piliuwrites:“Thisclosure(of
L’O RIGNAL
the melt shop) has been made necessary
because of environmental considerations
“Significant layoffs” loom at Ivaco
associated with the bag house. These
Rolling Mills which will shut its foundry
environmental concerns have been fully
inJuly,raisingmoredoubtsaboutthefuture
explained to you in recent months.” Piliu
of the L’Orignal steel plant, where
says in his letter to the union officials.
unionized workers have rejected
“The Company had hoped to avoid this
concessions the company deemed to be
result. The Company indicated to the three
vital to the long-term viability of the
locals that it was prepared to make a
industry.
substantial capital investment to correct the
“There will be a cessation of operations”
bag house emissions problem, as well as to
at the melt shop effective July 16, company
upgrade the Melt Shop so that it would be a
President and CEO Giorgio Piliu writes in
state of the art facility offering continued
an April 12 letter to United Steelworkers
employment for our employees for many
representatives.
years in the future,” the letter continues.
The decision came after about 340
“To provide a stable labour environment
unionizedworkersrejectedapayfreezeand
so this capital investment would not be put
fringe benefits concessions, measures the
at any increased risk, the Company asked
company says are essential to the future of
the Unions to agree to a contract extension
the mill.
withcertaincostcontainmentmeasures.You
Oneofthelargestprivatesectoremployers
advised the Company on April 8, 2011 that
in the area, Ivaco employs about 460
the Union Locals have voted to reject this
employees.
contract extension. This is regrettable and
The melt shop closure will likely mean
will no doubt have long-term consequences
that the entire plant will be shut before the
on the future of Ivaco, its employees and the
end of the year, observes Richard Leblanc, a
community.”
staff representative with the union.
Employees who will be laid off as part of
“We are asking the employer asking if
the restructuration, that will take place in
there is any alternative,” says Leblanc,
July and August, will receive notification
adding that the concessions proposal had
later this month. About 55 melt shop
divided union members.
employees will be “bumped” to the rodmill
Non-unionized employees will also be
proposed $80 million expansion and
The majority of the members voted in
section of the mill. “However, these 55
affectedbythe“significantlayoffs,”theletter
upgrading project.
favour of accepting austerity measures that
employees who have bumping rights from
reads.
Last week, Lalonde said that Ontario
wouldbecontainedinafive-yearagreement,
the steel plant to the rolling mill will be
Meanwhile, Glengarry-Prescott-Russell
InfrastructureMinisterBobChiarelliwould
says Leblanc. “But in order for that to be
permanently laid off when the rolling mill
Liberal M.P.P. Jean-Marc Lalonde has been
be meeting in May with management and
accepted,allthreelocalshadtovoteinfavour.
restructurestoatwo-crewoperationeffective
pressing for government assistance for the
labour representatives.
One of the three said No, so it wasn’t
August 21, 2011,” Piliu writes.
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