Algoma Steel reaches tentative deal with union

Algoma Steel said Monday it reached a new tentative collective agreement with its hourly workers, one day before their current contract was due to expire.

The company said details of the tentative pact will not be released until United Steelworkers Local 225 can meet with its members.

The current collective agreement, which expires the end of this month, will be extended to allow time for a vote.

Last Thurday, the company said it had tabled its "final" contract offer, which included promises of a $2,000 signing bonus, wage increases total 13.2 per cent over the three-year contract, higher shift premiums and higher pension benefits.

On the same day it made its offer to its hourly-wage employees, the company said it reached a deal with United Steelworker Local 2724, the bargaining unit for its salaried employees.

Based in Sault Ste. Marie, Algoma was acquired in June byEssar Group, an Indian conglomerate.