U.S Steel mediation day

[projekktor id=’21090′]

US Steel and several of its stakeholders were meeting in Toronto today, as part of a 3 day mediation hearing. Where US. Steel Canada is arguing for an extension of protection to continue restructuring. As part of the extension the company wants to suspend retiree health benefits and some pension payments, as well as its property tax payments.

US Steel workers and retirees, their union, the province and the city of Hamilton are some of the stakeholders arguing their case in a mediation hearing. The steelmaker has asked the courts permission to cut off health benefits for more than 20-thousand retirees and some pension payments, which the union is fighting

“These pensioners worked in that environment all of their lives. Most of them are ill in their old age and need those benefits, so it’s really putting a gun to the head of the people that need it the most. The most vulnerable in our society” said Lake Erie Union President Bill Ferguson.

The company also wants to suspend it’s property tax payments, which are more than $5 million a year – saying if they don’t, US steel will have to stop production entirely by the end of the year.

During thee 3 day mediation session in Toronto they are also discussing a business plan for the Canadian unit, it’s potential sale and the shift of production to the U.S.

Employees argue the company should be prevented from taking any action on production until a hearing is held, saying US Steel has moved 15-thousand tonnes of product out of Canada to its U.S mills. “When you are going into protection, you are supposed to maintain operation in order to fix it. What they are starting to do is remove tonnage.”

The company says it hasn’t been able to negotiate a sale of its plants in Hamilton and Nanticoke, or reach a restructuring agreement.

If all the parties are unable to reach an agreement, a court hearing is scheduled for next week.