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HAMILTON - The United Steelworkers union says it's "stepping back" from an attempt to represent employees of ArcelorMittal Dofasco, a Hamilton steelmaker that had remained union-free despite USW overtures while it was an independent company.

The USW's announcement comes little more than a week after it declared that "a new chapter in steel sector labour relations is unfolding," with Dofasco's new owner ArcelorMittal is not opposing an organization drive.

On Thursday, the union released excerpts of a letter from USW Ontario/Atlantic Director Wayne Fraser that was circulated to the Dofasco employees. The letter said there hadn't been enough support to pursue the process at this time.

"At the beginning of this process we pledged to you that we wouldn't proceed to bargaining if there wasn't sufficient support to move forward. Following up on that commitment to you, it has become clear that at this time there is not enough support to move to the collective bargaining step."

The Steelworkers have made a number of unsuccessful attempts to organize the Dofasco workforce, which received competitive wages along with profit-sharing and benefits.

This culture was seen as a key competitive advantage when it was taken over after a bidding war in early 2006 by Luxembourg-based Arcelor, which soon after was itself acquired by Mittal, the world's largest steel producer.

The Steelworkers union is bargaining agent at most ArcelorMittal plants in North America.

"Of course we are disappointed that the 4,000 ArcelorMittal Dofasco workers will not at this time be part of the 20,000-strong force of unionized ArcelorMittal workers in North America, but we respect the wishes of former Dofasco employees," Fraser said in his letter.