Members of the United Steelworkers union have voted 93 per cent in favour of a labour agreement with U.S. firms Woodside Capital Partners and Pinnacle Steel Inc. that cuts wages but will lead to the reopening of a trimmed-down Hamilton Specialty Bar Corp., formerly Slater Steel Inc.
The deal maintains benefits, vacations and recall rights, but in the period leading up to full production the workers have agreed to take a $3.75-an-hour cut in wages.
"An incentive plan based on average hourly tonnage over the last four years will bring wages back up to the $3.75 once production reaches the average," the union said Tuesday in a release.
"Production beyond that will yield further increases."
A union spokesman said the lowest-paid employee will make just over $19 an hour, but the incentive increases should occur quickly.
The union said the new owners have agreed to begin recalling employees based on seniority and the plant will operate three 12-hour shifts employing 120 workers, to start, over the first seven weeks. The recall will be reviewed by the union after five weeks.
Full production could re-employ as many as 250. The plant in Hamilton, Ont., previously employed 360.
Union members and hundreds of retirees were left jobless and without benefits when the former Slater Steel plant was shut down at the end of May by Delaware Street Capital. Delaware took it over in 2004.
"We will never stop fighting to save jobs in this community," said USW area co-ordinator Tony DePaulo. "It means so much to everyone to bring this facility back on line."
In early May, Local 4752 president Bill Baker and several USW members occupied the plant, with Mr. Baker chained to a machine. The day-long occupation ended when the company agreed to reinstate about 500 retirees' benefits, which had been ended before the closing.
A as a result of the agreement with Woodside and Pinnacle, retiree benefits have been fully reinstated, with improvements to life insurance, hearing aid coverage and the elimination of a deductible on prescription drugs for people over 65.
"We never stopped believing that these jobs belonged to our people," said Mr. Baker. "We look forward to getting back to making it work for the long term."