An Ontario family-owned business, Salit Steel, announced the closure of its Niagara Falls facility last week. Serving as the company’s headquarters for more than 50 years, the location was sold amid an ongoing employee strike.
Salit Steel President and CEO Steven Cohen said the move was part of a consolidation plan that had been in the works for almost five years and involved the sale of the Stanley Avenue location.
In a statement, Cohen said the company would not have lasted for five generations without “responding to changing market conditions,” alluding to current steel industry trends and trade issues between Canada and the U.S.
Kevon Stewart, director of United Steelworkers District 6, said there were multiple factors that created the conditions for the closure.
“I think it’s important for people to understand this is like the perfect storm,” Stewart said. “We got the trade war that’s happening with the U.S. This same employer had about another four or five other facilities within the surrounding region that pretty much do the exact same thing, and then you have a change in the area.”
Stewart pointed to redevelopment as another reason for the closure.
“Marineland is basically next door to this facility, and when Marineland sold their property, I would assume that residential developers are looking to basically scoop up as much land as they can,” Stewart said. “I think the employer made it clear to us that they were approached by a real estate individual who was interested in the sale of the property.”
Stewart, the regional director who worked to negotiate between the striking workers, members of United Steelworkers Local 14241-01 and the company, said he tried to broker a deal before the strike.
“We were at the bargaining table with the employer, and there were concessions on the table that we didn’t think were needed at the time,” Stewart said. “We took the offer back to our membership, where both were rejected, and then we entered into a lawful strike.”
The strike began in June after employees rejected a contract offer that affected workplace protections, job security and benefits.
Stewart said that during another attempt to negotiate in October, staff and union representatives were informed of the closure.
“We reached out to see if there was an appetite for the employer and the union to be convened to resolve our labor dispute,” Stewart said. “We had our committee and our staff there, and at that meeting, we were informed that they were shutting that facility.”
According to CBC Niagara, employees received termination letters stating that they were being terminated without cause.
Since the announcement, Stewart said there have been no attempts by the employer to negotiate severance packages, despite the union raising the issue.
“We put together a package deal, and that was our aim with this employer, but the employer told us that they’re going to pay out the severance monies as per the Employment Standards Act,” Stewart said.
Employees continue to hold the line and picket in hopes of receiving better severance payouts.
