Uneasy times impact Essar Steel Algoma Inc.

More questions than answers surround the possibility of reduced work schedules at Essar Steel Algoma Inc.

A worksharing model put forward by the company in late November envisions 20 percent cuts in hours for workers.

Savings generated by the cost-trimming move could help to prevent up to 500 layoffs.

While management and labour representatives continue to look at various options, what the future might bring is far from certain.

Ian Kersley, president of United Steelworkers Local 2724 representing 600 salaried employees, told SooToday.com: “We’ve got lots of questions for the company to answer. When we get them, we'll take those answers to our membership.”

Ongoing discussions also involve Ontario Works, which could help to top-up salaries if reduced hours were implemented.

Kersley said the worksharing concept has been used at the plant before.

“We went through this in 1982-83 as salaried people. Even then, there were still layoffs.”

Returning to current conditions, Kersley said: “If there’s a silver lining to this, it’s that the whole world is in the same situation. Essar has done pretty well to maintain the workforce at the level it has.”

Coping strategies include moving people to other areas within the steelworks when normal workloads disappear.

Local 2251 President Mike DaPrat was unavailable for comment.

Brenda Stenta, manager of corporate communications at Essar Steel Algoma Inc., confirmed that worksharing is being explored and added that "we don't have anything definitive to announce at this time."

Meanwhile, Tenaris Algoma Tubes will close for about two weeks over the Christmas period.

The company says the shutdown reflects typical industry operating procedures.

Subsequent SooToday.com coverage of this story

City denies report about Essar work-share proposal