Essar Spirit Live on Queen

On Saturday morning, Rotaryfest brought a carnival to Queen Street, infusing energy and a spirit of community into the thousands of families and neighbours who lined the street to join in the revelry. There in the midst of this raucous celebration was the Essar Spirit – Live on Queen, moving to the beat of Four Way Stop, a talented team of musicians featuring Essar’s very own Jim Scali, and friends Rick Rogers, Nick Scali and Bob Yeomans. Thanks to the talents of our employees, this year’s entry staged an array of Caribanna-style costumes and musical accessories. Leading the charge were our saxophone toting Jazz Fish, swaying to the tunes of Jimmy Buffet and dodging the spray from our fun loving children who helped to keep the crowd cool with their super soakers. Our spirited team of employees and their offspring were so engaged with the crowd they could easily have kept on going down Queen Street all the way to the Plant gates!

Special thanks to the judges who saw it fit to honour our entry with First Prize Professional. Looking back at the array of photo galleries and video footage from the parade you can’t help but feel the community spirit this event spawns. We were among friends and we have RotaryFest to thank for the experience.

Kudos to the Rotarians who led the charge and brought this community together in celebration, and to the many who lent a hand along the way – we are indebted. Thanks for the memories.

NEGOTIATIONS UPDATE

We are just past the halfway point in bargaining with both USW locals at Essar Steel Algoma. The Company is looking to negotiate agreements that ensure the viability, sustainability and continued success of this operation for many generations to come. It comes as no surprise to anyone who reads the Sault media or follows steel that the financial and operational pressures in the steel industry persist. Not the least among these are the increasingly volatile raw material costs.

These pressures weigh heavy as we go through the process of contract negotiations. Finding the balance between a fair and reasonable settlement that reflects the importance of our employees and the realities of the steel industry is challenging. In spite of this we are working towards achieving fair settlements.

We believe that for both USW locals our proposals reflect these realities.

For USW Local 2251, the Local representing our hourly employees, this means we are seeking ways to optimize productivity and to ensure our competitive performance in an increasingly consolidated, global steel industry. Discussions to date have been constructive in this regard and talks are now moving to monetary issues.

For USW Local 2724, which represents the front line supervisors, technical and professional staff, this also includes making changes that will put us on par with our peers in the industry.

Among the items in our proposals to USW 2724 is the need to amend the work terms for our front line supervisors, who are our front line management personnel, in a way that makes us competitive within our industry. Although we understand how this situation evolved it must be corrected.

We invest a great deal in our front line management personnel and we need to be able to guide their respective career path. Current contractual restrictions within the bargaining unit limit their mobility, creating operating inefficiencies and limiting opportunities for professional development.

There is a tremendous talent pool at ESSAR Steel Algoma Inc. and within the ESSAR Group which all global operations benefit from being able to access. With this in mind, our Local 2724 proposals also contain some provision for shared services and for sharing tasks among the Essar group of companies where it is most economical and makes the most business sense. The revisions we are seeking include safeguards for current employees ensuring no employee job is affected by shared services.

In terms of our competitive advantage, no other competitor is prevented from using the economy of shared services to reduce its costs with appropriate protections for existing employees. What we seek is a level playing field.

These important issues are critical to the ongoing viability of the Company, and they are not going away. The sooner we enter into meaningful discussions with Local 2724 on these issues, the sooner we can arrive at solutions that all parties can support.

Congratulations to our first Scholarship of Excellence Recipients!

Left to Right: Nicholas Turco, Stephen Lajambe, Olivia Christie

Essar Steel Algoma launched its Scholarship of Excellence program in March of this year. This academic initiative is offered to local high school students who will continue their education at university or college upon graduation. Academic performance, community involvement, and extracurricular involvement are the key qualities considered when choosing a successful candidate. First consideration is given to a child, grandchild, or legal ward of an Essar employee or retiree. Most importantly, the Scholarship of Excellence offers students in our community an academically and personally rewarding growth opportunity.

The Scholarship of Distinction is awarded to university bound students while the Scholarship of Merit is given to those who elect the college route. Both are renewable for the term of their degree or diploma, subject to minimum performance requirements.

This year’s call for applicants was met with great enthusiasm and the Scholarship Committee narrowed the candidates down to three special recipients.

Nicolas Turco is a graduate of St. Mary’s College and an Ontario Scholar. With his Scholarship of Distinction he plans to study arts and business at the University of Waterloo in the fall.

Olivia Christie hails from Korah Collegiate where she graduated as an Ontario Scholar and an International Baccalaureate diploma candidate. Olivia will attend the University of Western in the fall, applying her Scholarship of Distinction to her nursing studies.

Stephen Lajambe graduated from Central Algoma Secondary School as an Ontario Scholar. He received the Scholarship of Merit in support of his studies at Cambrian College in the electrical technician program.

Best wishes to Nicolas, Olivia and Stephen as they continue their studies! We look forward to following their progress.

For more information on the Scholarship of Excellence program click here.

Essar Iron Oresman hang up life jackets for another year

Poor weather forcasts could not dampen team Essar’s Iron Oresmen’s spirits at this year’s Dragon Boat Festival. Maybe it was luck, or maybe a full 24 hours of hoping for clear skies, but the proposed rain for Saturday June 12th held off, turning this year’s Dragon Boat Festival into a fun, memorable day of relaxing, socializing, and of course…paddling. With a drummer channeling the aura of Jack Sparrow, and a steersman instilling the fear of an army sergeant, we were bound for greatness!

Joking aside, although Essar’s Iron Oresmen didn’t officially win, team members put in a valiant effort and walked away from the experience feeling the goodness of volunteerism, the warmth of camaraderie, and personal triumph. Collectively, they raised $1,165 in pledges in support of the Sault Search and Rescue and the YMCA.

We proudly salute the 2010 Essar Iron Oresman for their show of spirit - Paddles Up!

THE DRAGONS ARE COMING!

By now you will have seen “The Dragons are Coming!” signs all around the city promoting the upcoming Sault Dragon Boat Festival (http://saultdragonboat.com/).

The Festival takes place this Saturday June 12, 2010 on Topsail Island, Bellevue Park. Proceeds from the event go to Sault Search and Rescue and the Sault Family YMCA.

For their 6th consecutive year, Essar Steel Algoma will be represented at the Festival by the ESSAR Iron Oresmen. The team is made up of employees from across the organization – some experienced paddlers, some new recruits – all keen to show their ESSAR spirit.

On June 12, 2010 – come out to Topsail Island and support the Oresmen!

PADDLES UP!

ESSAR SPIRIT RUNS THE GREAT LAKES!

"Long after the finish time is forgotten, the race is still remembered." - Unknown

Yesterday, despite the rain and cool weather, 13 runners from ESSAR Steel Algoma participated in the Run the Great Lakes race. Two of the runners started at 8:30 am and completed the half marathon and the balance ran the 5K/10K that started at 9:30.

Proceeds from the event go to the Lung Association and the Sault Athletics Track Club.

The race was a milestone event for several members of ESSAR’s newly formed Run/Walk group – a wellness initiative designed to support employees looking to adopt an active lifestyle.

Click here to read the accompanying article from the Sault Star.

Steve McEwan

Background: Rob Wildman, Foregroud: Andre Cyr

Steve Ancic

Mike Suraci

Essar featured in international environment magazine

Earlier this year Essar Steel Algoma hosted an international media delegation (International Go North Green Media Tour) and responded to a request from the editor of Environment Industry Magazine (a United Kingdom publication) to write a case study on our Cogeneration project. Attached is a link to the article as it appears in the April/May 2010 edition of the magazine.

Click through slides to pages 140/141 to view.

NEGOTIATIONS UNDERWAY

Yesterday, the Company and both of our bargaining units, USW 2724 and USW 2251 met to exchange proposals and begin the collective bargaining process. Our bargaining backgrounder has more information on this important round of collective bargaining for Essar Steel Algoma Inc.

Click here to read the coverage in The Sault Star.

Bargaining Begins

Earlier today, the Company and both of our bargaining units, USW 2724 and USW 2251 met to exchange proposals and begin the collective bargaining process.

For this round of collective bargaining, we have made some changes over previous years. To start, all bargaining will occur in Sault Ste Marie. We will not relocate to southern Ontario as in previous years. Understanding how important this round of bargaining is, we have put together a single bargaining team whose sole focus will be to negotiate a fair agreement. This bargaining team includes outside advisors, Harvey Beresford and Tom Wood.

You can read more about our collective bargaining by clicking here.

Steel Days

Representatives from ESSAR Steel Algoma are in Ottawa this week to participate in Steel Days discussions with cabinet ministers, members of parliament and senior government officials. Their message focuses on Canada’s ‘New Steel’ and the industry’s economic impact and environmental performance, particularly as it contributes to a more innovative, green and sustainable future.

As a manufacturer of high strength, light weight steel solutions, ESSAR Steel Algoma plays an important role as a supplier to manufacturers in automotive and green energy sectors who are seeking to develop stronger, lighter products. We are a key component in other major industrial and manufacturing clusters, helping to create good, secure jobs and strengthening the Canadian economy.

While in Ottawa, ESSAR, in partnership with other members of the Canadian Steel Producers Association (CSPA), will talk with policy makers about the steel industry’s priorities and the important role we can play in making Canada stronger.

Click here to read the Steel Days Press Release.

A comprehensive study of Canada’s steel sector was released yesterday, presenting new insights into the impact of steel in Canada and offering a fresh look at future prospects for the industry.

Click here to read a summary of the study’s key findings.

Click here to read the complete study by Dr. Peter Warrian of the Munk Centre for International Studies, University of Toronto.

Building on Progress

Last night we hosted a Community Open House to share detailed information about recent progress, current priorities and planned emission control initiatives. We were pleased to have the opportunity to meet with our neighbours and members of the broader community and to discuss matters of mutual concern.

At Essar Steel Algoma we take our environmental responsibilities very seriously. We will continue to conduct our business and operations in compliance with all applicable environmental legislation, advancing a positive approach to environmental stewardship.

Click here to read the story in the Sault Star.

Rose Petals and Palaces – A Royal Experience

The mid-point of the family journey to India proved to be a glorious high point – a dreamlike experience that stirred the senses and calmed the soul.

On February 6th the families flew to Udaipur, a Hindu City in Rajasthan – a state of kings. Prior to India’s independence in 1947, Rajasthan was ruled by 22 families – the Maharanas (Hindu) and the Moguls (Muslim) of the Indian empire. The city of Udaipur was founded by King Udai Singh, a great warrior whose dynasty was the only Rajasthan entity never to be controlled by a foreign power; retaining independence even under the British rule.

Upon arrival in Udaipur, the families were shuttled to a lakeside jetty where they were greeted with warm hand towels, cool beverages and a boat to ferry them across the calm waters of Lake Pichola to the opulent splendor of their hotel – the Taj Lake Palace. A white marble and mosaic palace spread across a four-acre island, this summer home was built in 1746 by Maharana Jagat Singh И, the 62nd successor to the royal Mewar dynasty. The Palace offers all contemporary comforts against a regal backdrop of sculptures, fountains, gardens and pristine views. Our weary travelers alighted from their shuttle to a shower of rose petals and the dignified and doting hospitality of the Royal Butlers –descendents of the original palace retainers.

While in Udaipur, the families explored the City Palace and the colourful bazaars at the heart of the city, including an educational demonstration on the famous Udaipur art of Pichwai painting. During their last night in this majestic city, the families dined aboard a Gangaui, an antique ceremonial imperial barge. From this unique floating vantage point, they were treated to a traditional dance performance on the balcony of the City Palace and a personal fireworks display – an evening truly befitting of royalty and reserved for our Essarites.

A Handshake Trumps E-mail Every Time

Feb. 4 & 5, 2010, Hazira, Gujurat – The visit to Hazira offered a refreshing respite from big city life in India and for the Essar Steel Algoma employees, it would prove to be a professional highlight. The opportunity to visit a sister mill and meet with counterparts from across the globe is a rare experience, promoting a valuable exchange of ideas and best practices.

Essar Steel Hazira is located in Gujarat state in the town of Hazira, just a short drive from the bustling metropolis of Surat. Hazira is currently in the midst of a massive expansion which will augment the current production level of 6 million tons by another 5 million tons per annum.

In support of their Hazira operations, Essar has built a complete township around the steelworks, power and port facility. The township itself is entirely ISO certified, offering all necessary utilities and services, a school, an equestrian club, restaurants, a fitness centre and accommodations for employees and their families. Our families stayed at the Essar Coil Club - a full service guest house.

For the children (and a few young-at-heart adults) a visit to the equestrian club offered a fun and unusual encounter. Here, impeccable stalls and grounds are home to a stable of fine horses, dairy cattle, goats, turkeys, a canine unit and the star performers – camels. Camel rides were arranged, and apart from the ungainly assents and descents and the comical groans from our trusty, albeit testy steed, all riders chalked the experience up as one of the more memorable moments in their India adventure.

Upon arrival, all guests enjoyed a tour of the steelworks and the next day, while Algoma employees spent time in the mill with their counterparts, the spouses and children were treated to a riveting dance performance by the Rachna (creation) Essar Ladies Club. They also enjoyed a tour of the township school which boasts an enrollment of 1200 Essar children from kindergarten to 12th standard. A talented mehendi** artist was brought in to adorn the women with this beautiful customary embellishment and beautiful, hand-crafted gifts were kindly showered on the members of the group. Overall, the afternoon was an engaging and insightful glimpse into the culture and lifestyle enjoyed by Essar Hazira families, setting the stage for the Sangam festivities slated for that evening.

The Sangam Family Day festivities began at dusk. Over 8000 guests gathered under the night sky with company founders, Shri Shashi and Ravi Ruia for a spectacular display of Essar talent and celebration. The Essar Algoma families, resplendent in their new traditional Indian attire, were invited on stage for formal introductions. From here they witnessed the prize draw for five Essar Hazira employees, who, along with their families will be hosted by Essar Algoma on a cultural and professional exchange to Canada in the coming year.

The Sangam event was superb and served as a fitting close to the group’s time in Hazira. In the morning, they would depart for Udaipur, a city of palaces and lakes where the families would indulge in a truly royal experience.

Employee Reflections - What stood out most from your visit to Hazira?

“The 5 million ton expansion project including a plate and strip mill, a blast furnace, coke ovens, and a Direct Reduced Iron plant – all under construction at once. The pride expressed by all of the employees involved and of course, the exceptional hospitality at the plant, the Coil Club, everywhere. We were treated as honoured guests.” – Ritch Kendrick

“I was impressed by how clean the plant was and how well organized the mill appeared to be.” - John Vernelli

“They took us under their wing and showed us so much – such wonderful hospitality. The mill tour was quite informative – the mill is very, very clean. I also enjoyed the Sangam – it was very professionally done.” – Dodie Masse

“I really enjoyed my one on one with my counterpart. They are doing basically the same job as me; they face the same obstacles and are applying similar methods to overcome the challenges. It was a pleasant surprise when Mr. Shashi Ruia came and sat with us on the sofas at the Sangam. I really enjoyed our chat.” - Chris Hodkinson

** Mehendi is a traditional art of adornment through the application of intricate designs on the hands and feet. Mehendi leaves are crushed and blended with eucalyptus oil, then applied to the skin with a very fine confectionary-like tube.

Four days immersed in India and the adventure continues...

Feb. 3, 2010 - India is a nation of contrast and day two in Mumbai exemplified this reality with a large dose of culture – both modern and traditional. In the morning, the families boarded a bus to Film City for a glimpse of India’s Bollywood industry. Over 300 Hindi films are produced here annually, many to international acclaim. From the glamour of the movie sets and shoots the group transitioned to the streets of Mumbai for a look at the architecture and several major attractions such as the Mani Bhavan (Ghandi Museum), the Gateway to India, the Haji Ali Mosque, the Mantralaya (ministerial homes and state parliament offices), and the largest shanty town in Asia as featured in Slumdog Millionaire.

All families were treated to a shopping excursion to acquire authentic Indian attire for the Sangam Family Day festivities in Hazira later in the week. The women were outfitted with salwar kameez and the gents in kurta and pajama. And if that wasn’t enough excitement to pack into a day, the evening held the promise of a gala dinner at the Taj Mahal Hotel. Adil Malia, Group President- Human Resources, hosted the group along with Armando Plastino, CEO of Essar Steel Algoma, who just arrived in India the day before.

When the group visited Essar House, Dr. Sujaya Banerjee, Chief Learning Officer with the Essar Group, gave a presentation and shared some insights into the economic, political and socio-cultural landscape in India. She described India as a country in transition, caught between the agricultural, industrial and technological eras. Shanties with satellite dishes, BMWs driving next to bullock carts; village women carrying water on their heads alongside businessmen dressed in Armani and blue tooth headsets; masons hand mixing mortar to build magnificent marble sky rises. Such stark contrasts have intrigued the families on their travels through this remarkable country, furthering their understanding of how a developing nation of 1.2 billion can wield such influence on the global stage.