Emilie WangUnited Steelworkers Steel & Mining Collective Agreement 2025–2027 — Complete Guide to Your Rights and Pay
The United Steelworkers (USW) is Canada's largest private-sector union, representing approximately 35,000 workers across steel manufacturing and mining operations nationwide. If you work at facilities such as ArcelorMittal Dofasco, Stelco's Hamilton Works or Lake Erie plant, or Teck Resources' Trail operations in British Columbia, the 2025–2027 collective agreement governs virtually every aspect of your employment relationship: your wages, shift premiums, overtime entitlements, vacation pay, pension contributions, and the notice you receive if your position is eliminated.
This in-force agreement runs from 1 August 2025 to 31 July 2027. It was negotiated against a backdrop of elevated inflation, tightening global steel markets, and a shift in pension philosophy for newer hires. Whether you are a long-service furnace operator covered by the original defined-benefit pension plan or a post-2020 hire enrolled in the newer defined-contribution arrangement, understanding the contract in detail is essential for your financial planning and workplace rights.
Use the free calculator at the bottom of this guide to estimate your gross-to-net pay, overtime earnings, vacation pay, and statutory entitlements in minutes.
Who Is Covered
The 2025–2027 agreement applies to all USW bargaining-unit employees at participating steel production and mining facilities across Canada. The largest bargaining units include:
- Stelco Hamilton Works (USW Local 1005) — approximately 600 production and maintenance workers in Hamilton, Ontario, covered by the Canada Labour Code (CLC) for federally regulated operations.
- Stelco Lake Erie Works (USW Locals 8782 and 8782-03) — approximately 1,150 members at the Nanticoke, Ontario steelmaking and pickle-line operations.
- Teck Resources — Trail Operations (USW Locals 480 and 480B) — approximately 1,300 workers in Trail, British Columbia, engaged in zinc and lead smelting and refining.
- ArcelorMittal Dofasco — Hamilton, Ontario flat-rolled steel production.
- Additional satellite bargaining units at mining operations across British Columbia, Alberta, and Ontario.
Workers in federal undertakings (certain ports, interprovincial pipelines, and federally regulated mines) fall under the Canada Labour Code (CLC). Workers at provincially regulated operations in Ontario follow the Ontario Employment Standards Act, 2000 (ESA), and those in British Columbia follow the BC Employment Standards Act. The CBA establishes terms above these statutory minimums; if the contract is silent on a topic, the applicable employment standards legislation applies.
Current Wage Rates and Pay Grid
Wages under the 2025–2027 agreement reflect the bargaining environment of the mid-2020s, with general increases designed to outpace the consumer price index and address cost-of-living pressures that eroded purchasing power in the 2021–2024 period.
Stelco Hamilton Works / Lake Erie Works — The five-year contract ratified prior to the current term established a pattern of $1.05 per hour annual wage increases plus cost-of-living adjustments (COLA) tied to CPI movement. Skilled trades workers received an additional $6.50 per hour market adjustment to close the gap with non-union comparators. For 2025, this brings a journeyperson welder or millwright base to approximately $42–$46 per hour before shift premiums.
Teck Resources Trail Operations — The five-year pattern provides 2% annual general wage increases plus a $12,000 ratification bonus and $2,000 bonuses in each subsequent year for a total of $20,000 per member over the term. An experienced refinery operator at Trail earns in the range of $38–$44 per hour at the top of the wage grid.
Shift premiums apply on top of base hourly rates:
- Afternoon shift (typically 3 p.m.–11 p.m.): +$1.25/hr
- Midnight shift (typically 11 p.m.–7 a.m.): +$1.75/hr
- Weekend premium: varies by location; typically an additional $0.75–$1.00/hr
Workers at mining operations subject to hazardous materials handling, underground work, or exposure to heavy metals (such as lead or zinc at Trail) receive hazard pay premiums that can add an additional $1.00–$2.50/hr depending on task classification.
Overtime Rules and Shift Premiums
Steel and mining operations run continuously — 24 hours per day, 365 days per year. The overtime provisions in the USW agreement must therefore be read alongside the applicable employment standards legislation.
Canada Labour Code (CLC) — Federal Workers
Under CLC section 174, overtime is payable at 1.5× the regular rate after 8 hours in a day or 40 hours in a week, whichever triggers first. On a 12-hour rotating shift schedule common in steelmaking, the additional 4 hours per shift above 8 hours generates daily overtime. The CBA often negotiates a flat daily average for continuous operations workers in lieu of strict daily overtime, so consult your local collective agreement schedule for the specific arrangement at your facility.
Ontario Employment Standards Act (ESA)
For provincially regulated Ontario operations, overtime kicks in at 44 hours per week at 1.5×. However, the CBA may improve on this — many USW agreements in Ontario provide overtime after 40 hours weekly, matching the federal standard.
British Columbia Employment Standards Act
At Teck's Trail operations (BC), the provincial Employment Standards Act provides 1.5× after 8 hours per day, 2× after 12 hours per day, and 1.5× after 40 hours per week — the daily double-time provision is a meaningful protection for workers on extended shifts.
Holiday Premium Pay
Working on a statutory holiday entitles you to your regular day's pay plus 1.5× your regular rate for all hours worked — effectively 2.5× your regular hourly rate in total compensation value.
Vacation and Leave Entitlements
The CBA establishes vacation entitlements at or above the statutory minimums. For most USW steel and mining workers, the following tiers apply based on continuous service:
| Service | Weeks | Vacation Pay % |
|---|---|---|
| Less than 5 years | 2 weeks | 4% of annual earnings |
| 5–9 years | 3 weeks | 6% of annual earnings |
| 10–19 years | 4 weeks | 8% of annual earnings |
| 20+ years | 5 weeks | 10% of annual earnings |
The 20+-year tier is a CBA improvement over the statutory minimum under the CLC (which caps at 4 weeks / 8%) and Ontario ESA (which caps at 3 weeks / 6%).
Vacation pay may be taken as a lump sum before the vacation period or paid out continuously on each paycheque as a percentage of insurable earnings — the method is typically set by facility agreement. Long-service workers commonly elect the lump-sum method as it more accurately reflects full-year earnings including overtime and shift premiums.
Other Leave Provisions included in the 2025–2027 agreement:
- Sick leave: typically 5–10 paid days per year depending on the local addendum
- Bereavement leave: 3–5 days for immediate family
- Domestic violence leave: a new clause introduced in recent Stelco agreements
- Maternity/parental leave: supplement to EI benefits bringing total income to 75–80% of regular earnings during the leave period
Notice Period and Severance
If your position is eliminated, you are entitled to both statutory notice and (where qualifying conditions are met) severance pay. These are separate calculations.
Canada Labour Code (CLC) — Federal Workers
- Individual notice (s.230): A minimum of 2 weeks' written notice (or wages in lieu) after 3 months of service. Note: there is no statutory graduated scale for individual dismissals — 2 weeks applies regardless of seniority.
- Severance pay (s.235): 2 days of regular wages per completed year of service, subject to a minimum of 5 days and a maximum of 40 days. This applies after 12 months of continuous service.
- Group dismissal (s.212): If 50 or more employees are dismissed within a 4-week period, additional notice of 8–24 weeks applies depending on the number affected.
Ontario Employment Standards Act
- Notice (s.57): 1 week per year of service, maximum 8 weeks for 8+ years.
- Severance pay (s.64): 1 week per year of service if you have 5+ years AND your employer's Ontario payroll exceeds $2.5 million — there is no cap under the ESA (unlike the CLC's 40-day cap).
- Common law notice: Separate from and in addition to ESA statutory entitlements — courts typically award 1 month per year of service for professional or white-collar roles, less for production workers. The CBA usually displaces common law notice in exchange for negotiated severance language.
CBA Enhancement: The USW collective agreement typically supplements statutory entitlements with negotiated severance language that provides additional weeks of pay for long-service workers, particularly in mass-layoff scenarios. Always review your local addendum for the specific formula.
CPP, EI and Benefits
All employees in Canada must contribute to the Canada Pension Plan (CPP) and Employment Insurance (EI). For 2026, the rates are:
Canada Pension Plan 2026
- Employee rate: 5.95% on earnings between $3,500 (basic exemption) and $74,600 (Year's Maximum Pensionable Earnings — YMPE)
- Maximum base CPP contribution: $4,230.45 per year
- CPP2 (second additional): 4% on earnings between $74,600 and $85,000 (YAMPE) → maximum additional contribution of $416.00
- Total maximum CPP: $4,646.45 per year
- Employers match dollar-for-dollar
Employment Insurance 2026
- Employee premium rate: $1.63 per $100 of insurable earnings
- Maximum insurable earnings: $68,900
- Maximum annual employee premium: $1,123.07
- Employer premium: 1.4× the employee rate → maximum $1,572.30
Pension Plan — USW Steel & Mining
The 2025–2027 agreement maintains a two-tier pension structure:
- Defined-benefit (DB) plan for members hired before 2020: provides a guaranteed monthly benefit at retirement based on years of service and final average earnings. Contributions and recent improvements were negotiated in successive agreements.
- Defined-contribution (DC) plan for members hired after 2020: both the member and the employer contribute a fixed percentage of earnings to an individual account; the retirement benefit depends on investment performance.
Additional health, dental, vision, and disability benefits are negotiated locally and typically provide full family coverage with minimal employee co-payment.
Key Changes in This Agreement
The 2025–2027 round of bargaining delivered several notable improvements over the 2022–2025 predecessor agreements:
- Wages above inflation: General increases of $1.05/hr per year (Stelco) and 2% annually (Teck) both exceeded the 2024–2025 CPI running at approximately 1.7–2.0%, restoring real purchasing power.
- Skilled trades market adjustment: The $6.50/hr uplift at Stelco facilities acknowledges recruitment and retention challenges in the millwright, electrician, and instrumentation trades.
- Enhanced profit sharing: Stelco Lake Erie workers secured a new annual profit-sharing plan tied to facility performance metrics, adding variable income on top of the base wage.
- Domestic violence leave clause: A new addition aligning the CBA with Ontario legislative developments and broader union priorities.
- DC pension contributions increased: Post-2020 hires saw employer DC contributions rise, narrowing the gap with legacy DB members and improving long-term retirement security.
- Hazard pay reclassification at mining operations: Updated job classifications at mining facilities now trigger hazard pay at lower exposure thresholds, benefiting a wider group of workers.
How to Use This Free Calculator
The USW Steel & Mining 2025–2027 Free Calculator below provides six tools in one interface:
- Wages & Tax — Enter your hourly rate and hours per week to see gross annual income, federal income tax, CPP, EI, and estimated take-home pay. Uses 2026 federal brackets (14%–33%) and the $16,452 basic personal amount.
- Overtime & Shift Premiums — Calculate daily and weekly overtime under the CLC (8h/day or 40h/week), Ontario ESA (44h/week), or BC ESA (8h/day with double-time after 12h). Add afternoon, night, and weekend shift premiums.
- Vacation Pay — Find your vacation entitlement and pay percentage based on years of service. Compare lump-sum payout with ongoing per-paycheque accrual.
- Notice & Severance — Estimate your statutory termination entitlements under the CLC or Ontario ESA. Enter years of service and annual salary to see your minimum notice and severance values.
- CPP & EI — See your exact 2026 contributions broken down monthly and annually, plus employer costs.
- Statutory Holidays — Calculate the dollar value of each of the 11 federal statutory holidays plus provincial days at your hourly rate, and the premium pay if you are required to work on a stat.
All calculations are indicative and use 2025/2026 statutory rates. Provincial income tax is not included in Tab 1 — consult your provincial tax authority for the complete picture.
For more collective agreement tools covering other Canadian sectors, see our guides to the CUPE Ontario Hospital Workers CBA 2025–2027, the Unifor Auto Sector CBA 2024–2026, and the Teamsters Canada Road Transport CBA 2025–2026.
Conclusion
The United Steelworkers 2025–2027 collective agreement represents a solid advance for Canada's steel and mining workforce: real wage gains above inflation, improved skilled trades compensation, enhanced profit sharing, and updated pension contributions for newer hires. Understanding the full scope of your rights — from daily overtime triggers on 12-hour shifts to the correct severance formula if your mill closes — is the starting point for protecting your financial interests.
Use the free calculator above to run your own numbers. If your situation is complex — a potential plant closure, a long-service termination, or a dispute over shift premium classifications — consult your USW local steward or a qualified labour lawyer.
Calculations are indicative only and do not constitute legal advice. Employment standards vary by province and whether you are federally regulated. For specific advice, contact the Canada Labour Program at 1-800-641-4049, your provincial Employment Standards office, or a labour lawyer.
