Community braces for impact as Algoma Steel layoffs begin

Next Monday comes the day that many Algoma Steel employees have dreaded.

It is the date printed on their layoff notices from last December, a deadline that has loomed over the workforce for weeks. While not all of the 1,000 employees will be gone on March 23, the reality of the situation has set in, with many already planning for life after the steel plant.

The layoffs are taking effect on Monday, with many people already off the job or preparing for their final shift. In the lead-up to this moment, union officials have been working diligently to ensure their members are treated properly as hundreds prepare to leave the job site over the coming days.

Union works to ensure fair process

For the union, the weeks leading up to the layoffs have been consumed with the complex and sensitive task of determining who stays and who goes. The process, governed by seniority, has required painstaking attention to detail to ensure every decision aligns with the collective agreement.

USW 2724 President Bill Slater described the emotional toll and the meticulous nature of the work.

“We’re all humans making all these decisions on who should stay and who shouldn’t, based on seniority,” he said.

”People are phoning, we’re having to go back and double check our work to make sure that it is, you know, based on the collective agreement.”

Support centre braces for influx

Since early January, the Power Action Centre has served as a crucial resource, offering training and education about the options available for the affected workers and contractors. As of Friday, more than 400 people have already signed up for their assistance. However, officials at the centre anticipate that number will rise sharply once the layoffs officially take effect.

Ralph Medaglia from the Canadian Skills Training & Employment Coalition (CSTEC), which runs the Power Action Centre, explained that many workers have been waiting for clarity on their status before taking the next step.

“People wanted to wait and see what their status, layoff status, would be,” he said.

“But very soon we’re going to see a lot more people coming through the door because, as you know, on Monday, there is going to be atleast probably, I would guess, estimate 300 people that will be laid off initially and then, you know, so many, so many, more after that.”

Officials with the centre are now preparing for things to get even busier next week, as the situation becomes clearer for those who are laid off. Services are being ramped up to help navigate the transition.

Bob Karklins, also from the CSTEC, outlined the immediate plans to provide hands-on assistance.

“There’s one session going on at number two gate at Algoma Steel in their computer lab and next week, there’s going to be… booked all week here with the Service Canada rep here to go through the understanding the rules of play for E.I. as well as getting them registered into a Service Canada account,” Karklins said.

Federal extension offers crucial lifeline

The anxiety surrounding the layoffs has been somewhat tempered by a significant development from the federal government. Friday afternoon, an extension was granted to its Employment Insurance special measures – a change that steelworker union officials had been actively calling for in the Sault.

The extension provides a critical window for workers facing difficult decisions about their future. Rather than being forced into an immediate choice, they now have additional time to weigh their options.

Slater highlighted the impact of this announcement on the members’ decision-making process.

“People are making hard decisions with that. Now with this announcement, it looks like the members will have an extra six months to make the decision whether they want to maintain the recall rights with the company, or if they want to ask for their severance and move on with their life,” he said.

Many of the Algoma Steel employees set to be laid off have already retired, resigned, or are on sick leave, meaning the total number off the job come Monday will be much less than 1,000. Nevertheless, for the hundreds who are facing an uncertain future, the combination of union support, community resources and extended federal benefits is providing a foundation as they navigate the transition to life after the steel plant.

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