U.S. Steel's locked-out Canada workers to vote on contract

Tue Jul 30, 2013 9:14am EDT
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July 30 (Reuters) - Workers locked out since April 28 at U.S. Steel Corp's Lake Erie works in Ontario will vote on the steelmaker's latest contract offer on Wednesday, the company said.

If members of the United Steelworkers Local 8782 approve the contract, operations at Lake Erie would restart "as soon as possible," the company said in its quarterly earnings report, released on Monday.

U.S. Steel posted a second-quarter loss on lower sales, hurt by a drop in shipments linked to the labor dispute as well as maintenance projects that raised costs.

The lockout affects nearly 1,000 workers at the Nanticoke, Ontario, facility, which accounted for about 10 percent of U.S. Steel's raw steel output in 2012.

The contract proposal has not been endorsed by the union, according to updates posted on its website. The vote will be supervised by Ontario labor relations authorities.

In April, workers rejected an earlier offer from the company, shortly before they were locked out. The last lockout at Lake Erie, which started in August 2009, lasted eight months.

U.S. Steel's net loss for the second quarter was $78 million, or 54 cents a share, compared with net income of $101 million, or 62 cents a share, a year earlier. Net sales fell to $4.43 billion from $5.02 billion.

Analysts, on average, had been expecting a loss of 78 cents a share on net sales of $4.61 billion, according to Thomson Reuters I/B/E/S.