UPDATE 1-Russel Metals says in talks with union, mediator

* Employees at 5 plants vote in favor of strike action

* No strike or lockout planned

* Shares up 1.48 percent at C$21.19 on TSX

TORONTO, Oct 20 (BestGrowthStock) – Russel Metals (RUS.TO: ) said on
Wednesday that it was in talks with British Columbia’s labor
regulator and the union at five of its facilities in the
province in a bid to settle a contract dispute and avoid a
strike.

On Tuesday, the United Steelworks said that 99.8 percent of
unionized workers at the Russel Metals plants had voted in
favor of strike action to back their contract demands.

The union said the company was demanding too many
concessions in negotiations, despite improved stock prices and
an industry recovery.

But the metal distribution company said it had been hit
hard by the economic downturn of 2008 and did not expect to
return to previous volumes at many of its operations.

Russel added that under the mediation process with the
provincial Ministry of Labour, parties could not strike, nor
force a lockout.

Shares in Russel were up 1.48 percent at C$21.19 on the
Toronto Stock Exchange.

($1=$1.03 Canadian)
(Reporting by Julie Gordon; editing by Rob Wilson)

UPDATE 1-Russel Metals says in talks with union, mediator