Stelco, union trade blame over losing GM deal

By Jeff Pines

Washington, Nov. 22 - Bankrupt Canadian steel producer Stelco Inc. blamed the United Steelworkers of America for costing it a supply deal with its largest customer General Motors. But the union said it is the company that bears full responsibility for the loss of the business.

GM insisted Stelco guarantee it there would be no work stoppages through 2005 and wanted the assurance by 8 a.m. Monday morning.

But the union put "unrealistic and unrelated demands on the company as the price to maintain the General Motors business," Hamiltion, Ontario-based Stelco said.

"We have been prepared to meet right to the last minute in this matter. But as recently as last evening, the union made clear that it wanted to tie a large number of unrelated issues to the simple provision of security of supply General Motors required by this morning," said Courtney Pratt, Stelco's president and chief executive officer.

The union, however, said it was Stelco's managment that refused to show up. The union also said it provided the company and Deutsche Bank with written documents providing assurances they needed.

"This is truly incredible," said Steelworkers' National Director Ken Neumann. "We throw Stelco a lifesaver and they throw it back."

GM will find other suppliers to fulfill its 2005 steel needs, Stelco said.

Stelco filed for bankruptcy on Jan. 29, 2004.

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