Two thousand hourly workers at Algoma Steel will receive annual wage hikes of three per cent, totalling 15 per cent over the duration of their new five-year contract.
However, a copy of the just-ratified memorandum of agreement obtained by SooToday shows negotiations with United Steelworkers Local 2251 are far from over.
The new collective agreement requires bargaining to continue on two unresolved issues, with deadlines set in October and November.
A SooToday review of proposals advanced by both sides in recent contract talks shows the transition to electric-arc steelmaking has been a major source of disagreement.
The automation-hexed $120-million plate mill modernization, as described by SooToday last week, has also been a bone of contention.
The new collective agreement is conditional on both parties continuing to negotiate in good faith on both those outstanding issues.
A deadline of Oct. 31 has been set to resolve differences on the new electric arc furnaces. A further deadline of Nov. 15 applies to the plate mill issues.
If those differences aren't resolved by the deadlines, and the parties can't agree on deadline extensions, the issues may end up being resolved through binding arbitration.
At $700 million, the electric-arc conversion is by far the larger project.
In fact, it's the most expensive construction project in Sault Ste. Marie's history.
That transition will require a temporary increase in staffing, followed by staff reductions once the project is complete.
The company has said during negotiations that it doesn't expect any established members of Local 2251 will be laid off prior to July 31, 2025 as a result of the furnace transition.
The following are some excerpts from the memorandum of settlement ratified late Monday by Local 2251:
Wages
- effective Aug. 1, 2022: excluding the cost of living allowance rolled into the base wage on July 31, 2022 ($1.54), the wage scales in effect as of Aug. 1, 2022 will be increased by three per cent
- effective Aug. 1, 2023: total amount of the cost of living allowance in effect as of July 31, 2023 will be rolled into the wage scales. Effective Aug. 1, 2023, the base wage rate will be increased by three per cent
- effective Aug. 1, 2024: total amount of the cost of living allowance in effect as of July 31, 2024 will be rolled into the wage scales. Effective Aug. 1, 2024, the base wage rate will be increased by three per cent
- effective Aug. 1, 2025: total amount of the cost of living allowance in effect as of July 31, 2025 will be rolled into the wage scales. Effective Aug. 1, 2025, the base wage rate will be increased by three per cent
- effective Aug. 1, 2026: total amount of the cost of living allowance in effect as of July 31, 2026 will be rolled into the wage scales. Effective Aug. 1, 2026, the base wage rate will be increased by three per cent
- effective July 31, 2027: total amount of the cost of living allowance in effect as of July 31, 2027 will be rolled into the wage scales
- afternoon shift premium: increase by $0.10 per hour to $0.40 per hour
- night shift premium: increase by $0.10 per hour to $0.50 per hour
- Sunday shift premium: increase by $0.10 per hour to $0.70 per hour
Benefits and pension
- pension base company contribution: effective Aug. 1, 2022 increase to $3.05 per qualifying hour
- pension base company contribution: effective Aug. 1, 2023; increase to $3.25 per qualifying hour
- pension base company contribution: effective Aug. 1, 2024 increase to $3.55 per qualifying hour
- pension base company contribution: effective Aug. 1, 2025 increase to $3.85 per qualifying hour
- pension base company contribution: effective Aug. 1, 2026 increase to $4.15 per qualifying hour
- (add): a member whose spouse is also employed with the company shall be entitled to full coverage
- short term disability: increase reduced earnings continuance cap to a maximum of $3,750 for claims commencing on or after Aug. 1, 2024
- long term disability: increase reduced earnings continuance cap to a maximum of $3,750 for claims commencing on or after Aug. 1, 2023<
- major medical benefits: increase lifetime maximum by $10,000 to $170,000
- increase chiropractor, osteopath, podiatrist and naturopath visit allotment by $10 to $40 per visit on Aug. 1, 2022
- increase psychologist and social worker visit allotment by $10 to $40 and add coverage for psychotherapist, counsellor and psychiatrist on Aug. 1, 2022. Increase visit allotment by $10 to $50 on Aug. 1, 2026
- increase vision care allotment by $50 to $325 every two years
- surpassing lifetime maximum: increase lifetime maximum to $170,000
- dental plan: increase lifetime maximum for orthodontic services to $3000
- dental plan: add crown coverage at $1000 annual maximum with 50/50 co-pay
- health benefits on retirement: increase lifetime benefits maximum by $10,000 to $170,000
- health benefits on retirement: increase glasses and hearing aids by $200 to a maximum of $600
- health benefits on retirement: glucose monitoring system coverage: added benefit for retirees and eligible surviving spouses to enjoy the same benefits as current employees with insulin dependent diabetes mellitus including new glucose monitoring devices every three years
- increase meal allowance to $14 on Aug. 1, 2022, to $16 on Aug. 1, 2024 and to $18 on Aug. 1, 2026
- boot allowance: increase from $100 to $125. Any employee listed on the department seniority, plant seniority, vacation and pension credit list posted Feb. 1 each year shall have a credit of $125 established, which will be applied to any purchase of work boots or work gloves that the employee makes between Jan. 1 and Dec. 31 next. An employee may not however, make such purchases while laid off or on a leave of absence. Any unused portion of the $100 will be carried forward to the next Feb. 1 except that the amount carried forward plus the $100 annual allotment may not total more than $300. The $125 credit will be paid in May each year to any employee listed who worked at any time in the previous calendar year. The $125 will not be included in the employee’s earnings for the purpose of calculating vacation earnings
- boot allowance clerical: increase from $100 to $125
- funeral and bereavement pay: expand to include step relations