http://www.saultstar.com/2017/03/07/2251-to-challenge-mediation-move

2251 to challenge mediation move

By Brian Kelly, Sault Star

Tuesday, March 7, 2017 3:26:47 EST PM

Essar Steel Algoma

United Steelworkers Local 2251 will challenge a judicial order to continue contract talks with Essar Steel Algoma in Toronto.

Bargaining that began in early January has been done in Sault Ste. Marie, Local 2251 Presdient Mike Da Prat told reporters on Tuesday. He's upset by the move.
“The workplace is here,” he said. “The members are here. This is where negotiations belong.”

Mediation is scheduled March 22 to 31 and may be extended by mediator Warren Winkler, former Chief Justice of Ontario. De Prat's negotiating committee is “considering” not attending the talks in the provincial capital.

Bargaining will move from under Ontario Labour Relations Act to Companies' Creditors Arrangement Act.

Local 2251 and USW Local 2724 are to have their negotiating committees in Toronto. Mediation is to be done in private with no public discussion.
Da Prat calls Justice Frank Newbould's decision, made Monday, “oppressive.”
“It's unprecedented as far as this local union is concerned,” he told reporters at Local 2251's hall on Albert Street East. “He is telling us that he is going to sequester us in Toronto until such a time a deal is reached. That is absolutely abhorrent to us.”

Da Prat can't travel to Toronto for personal and medical reasons. He says the union's negotiating committee “cannot operate” by being in two cities.

“We are not prepared, nor are we willing, to split the committee,” said Da Prat. Instead, Local 2251 is suggesting the union committee participates in talks via videoconference.

“We have to consult each other,” said Da Prat. “We have to talk. We have to prepare responses to proposals. To do this is absolutely prejudicial to our members.”

Talks between the union and Essar Steel Algoma have resulted in agreement on some items in the last four weeks. With the move to Toronto, Da Prat says negotiations will start from scratch.
“Our position will be we're back to square one,” he said. “Different process. This is Judge Newbould's process.”

Local 2251 plans special membership meetings March 14 at 9:30 a.m., 3:30 p.m. and 7:30 p.m. at Quattro Hotel and Conference Centre. Members will be asked to restrict the union's negotiating committee from entering into any binding agreement with concessions if members cannot be consulted, or if talks happen outside the city.

“The time for strategic manouevuring is long past,” said Newbould in his order. “The public interest, including Algoma, its employees and retirees, its creditors, the City of Sault Ste. Marie and the province, demands that the parties now bargain in good faith to arrive at a settlement. Failure to do so could be disastrous for the entire public interest.”

Essar Steel Algoma entered CCAA in late 2015.
The steelmaker is agreeable to the change in location for contract talks if it helps the company and its workforce reach a deal.
“Algoma is focused on emerging from CCAA as soon as possible,” said manager of corporate communications Brenda Stenta in an email. “If mediation is the path that the court has directed, then we will engage whenever and whenever with the intent of arriving at a settlement.”
She calls the current negotiations “very complex” due to the restructuring.
“There are may stakeholders with much at stake in the process,” said Stenta.

An “approved, committed buyer” has an offer that will “substantially reduce” Essar's debt and dedicate up to $450 million “to be invested in stabilizing and modernizing the business.”

“They are committed to seeing Algoma emerge as a going concern, and it is in their best interest to ensure the company is structured to succeed.”

Essar Steel Algoma has not applied for a no board report.
btkelly@postmedia.com