Job terminations reported at Essar Steel Algoma

USW Local 2251 President Mike DaPrat has confirmed that Essar Steel Algoma terminated 55 positions after a decrease in orders for plate steel.

"The company contacted me yesterday to inform me," he said. "They said they would be going by ranking numbers."

DaPrat also said Essar hopes to rehire the people let go in mid April, depending on the state of the market.

Essar also told DaPrat that the employees that would be let go were unestablished.

"If any of them need assistance they are asked to call the hall," he said.

Essar Steel is also holding meetings with them to assist them with things like applying for unemployment insurance, he added.

Earlier today, an unnamed source told SooToday that Essar Steel Algoma has terminated between 50 and 70 workers who had not yet completed their probationary period.

The source attributed the job cuts to a decline in plate steel orders forced the mill to reduce its workforce. 

As reported earlier by SooToday, Essar Steel Algoma and Sault MP Bryan Hayes recently announced that Essar would benefit from a major ship building contract that would see orders for at much as 1,500 tonnes of steel plate that will be used in the construction of the first of six new Arctic Offshore Patrol Ships that will be procurred for the government of Canada.

The announcement was made about three weeks ago.

Also that day, Essar announced it's intent to add hundreds of jobs in the next few months, restart blast furnace number six and ask the city for $1 million in exchange for the sizeable economic benefits this expansion would bring to Sault Ste. Marie.