Results of Local 2724 vote on work-sharing at Essar Steel

United Steelworkers Union Local 2724, representing Essar Steel Algoma salaried employees, has voted to support a work-sharing agreement with Essar and Service Canada.

By a hair.

Local president Ian Kersley (shown) tells SooToday.com that 89 percent of the eligible voters turned out for the vote.

Of those, fifty-four percent voted to support an application to Employment Insurance Canada to begin a work-sharing program.

"It's a cost savings to the company," Kersley said this morning. "Our members are sacrificing a day's pay to keep others working."

The agreement will not take effect immediately, Kersley said.

How long it takes to enact a work-sharing agreement will depend on Service Canada.

But Kersley said the company would like to see it happen as soon as possible.

Under the proposed work-sharing agreement, Local 2724 members will work four days during their five-day work week, collecting employment insurance benefits for the fifth day.

Typical work-sharing agreements cover periods in which a shortage of work is expected for a minimum of six weeks to a maximum of 26 weeks.

To participate, employees have to qualify for employment insurance benefits and agree with the employer's strategy to share available work over a reduced work week.

The goal of the program is to avert layoffs.

But there are no guarantees, said Kersley.

The company did not include any guarantees in its work-sharing proposal.

"What it says is that they'll make every effort to avoid layoffs," said Kersley. "They couldn't give us a guarantee there would be none."

There are still some scheduling and staffing issues to work out, but Kersley said the forms are filled out and ready to go.

The letter of agreement from the union will now be signed and sealed and sent off to a Service Canada office in Mississauga.

After that, the decision will be in the hands of Service Canada.

When any final agreement is struck it will be between Service Canada, Essar Steel Algoma and Local 2724.

Kersley said the agreement can be terminated at any time and without notice by any of the three parties.

The union will be looking at it on a weekly basis.

"Our members are sacrificing 20 percent of their pay," he said. "We want to make sure there aren't others slipping in behind us to take advantage of this."