Essar says no jobs at risk in IT 'review' (update)

Essar Steel Algoma says it is in contact with "a number of vendors" as it conducts a review of how it provides IT support, though a company spokesperson said job losses are not on the table.

"At the end of the day, no one’s job is at risk," said Brenda Stenta. "The company has committed that there will be no layoffs or displacements from the IT department as a result of this undertaking."

Members of USW Local 2724 were to meet tonight to discuss a proposal from Essar Steel Algoma that the union president says could put as many as 50 IT jobs in jeopardy.

Lisa Dale, president of Local 2724, which represents salaried unionized staff at the steel plant, said Essar told workers on Oct. 1 that it would be seeking vendor proposals for the outsourcing of IT work including process programming as well as application and infrastructure work.

"Our concern is, typically companies don't go this route if that's not what their ultimate agenda is," said Dale.

Stenta said in an email to SooToday that a maximum of 25 roles out of a total of 65 in the IT department are part of the review. 

The outcome of the review will be evaluated in the months ahead, said Stenta.

"We have and continue to maintain an open dialogue with the employees and the union and they are actively engaged in the review process," she said.

A special Local 2724 membership meeting was to have taken place tonight at 7 p.m. at the the Marconi Hall, Ballroom C.

Dale said members were to discuss what the union's response will be. She said the collective aggreement between members and the company does include language that applies to contracting out.

"We're prepared to fight this," said Dale.