Union demands Stelco inquiry
Frustrated Hamilton steel workers want a public inquiry into U.S. Steel Canada’s creditor protection.
In a news release Monday, the union said its members in Hamilton and Nanticoke have been deeply impacted by the company’s restructuring under creditor protection and “it is time to do what is right for these impacted workers and our community.”
The call will be formally issued Thursday at a news conference at Local 1005’s union hall at 350 Kenilworth Ave. N. where worker leaders will be joined by Hamilton EastStoney Creek MPP Paul Miller. The event is scheduled for 3:30 p.m. Almost since U.S. Steel of Pittsburgh took over Stelco in 2007 union leaders have expressed growing fear about the security of pensions and other benefits programs they say are deferred wages and should not be compromised in any financial restructuring by the company.
They are especially angry at the Harper and Trudeau governments for not offering protection to an important Canadian industry.
“The federal government had an obligation to protect the employees, and the community from letting a foreign company come in and wreck Stelco Hilton Works,” the union news release said.
“At that time, we produced approximately 2 million tons of steel for mostly Canadian consumption.”
Within a year of taking over Stelco, however, the American company began shutting down operations in Canada, shifting work to its American plants, despite having given written assurances it would meet production and employment targets in Canada.
The Harper government sued to enforced those promises but, in a move that has outraged workers since, suddenly dropped the suit in exchange for a new package of company promises that have never been made fully public.
“The federal government made a secret deal with U.S. Steel that workers both past and present are not allowed to see,” the union complained. “This deal was to be a net benefit to Canada.”
Adding to their anger, union leaders note the company has been given court permission to stop making some pension contributions and to stop paying health benefits to retirees, despite assurances in 2007 that the company’s chronically short-funded pension plan would be protected by its new owner.
“Many workers who had worked at Hilton Works their entire life were now faced with a very critical decision: Retire early, much before they had planned to or go on Employment Insurance. Many chose to retire early, which can be described as retiring with a gun to their head,” the union release said.
“Now these retirees have to worry about losing more. You must be kidding us. We deserve much better than this.”
Gary Howe, Local 1005 president, said workers deserve to be compensated for that history of broken promises.
“Regardless of what is in the secret deal, it is clear that we deserve compensation on this deal. That compensation at the very least is a fully funded Pension Plan, (retiree health benefits) and guaranteed jobs in Hamilton, nothing less,” he said. “Our retirees deserve to live in dignity and stop having to worry whether what they earned will be swindled from them. The best way to ensure that is to start making steel again at our Hamilton plant.”