Ivaco shutting

"This is regrettable and will no

doubt have long-term consequences

melt shop in July

on the future of Ivaco, its employees


and the community.”



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


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


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


years in the future,” the letter continues.

The decision came after about 340

“To provide a stable labour environment


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.



advised the Company on April 8, 2011 that

in the area, Ivaco employs about 460

the Union Locals have voted to reject this


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


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


upgrading project.

favour of accepting austerity measures that

employees who have bumping rights from


Last week, Lalonde said that Ontario


the steel plant to the rolling mill will be

Meanwhile, Glengarry-Prescott-Russell


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



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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