City joins fight to see secret U.S. Steel deal

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The City of Hamilton has joined past and present workers at U.S. Steel Canada in demanding the release of the secret agreement that ended a lawsuit over the company’s broken employment and production promises.

Less than a year after U.S. Steel bought Stelco, it had reneged on many of the 31 promises it made as a condition of the purchase.  The federal government sued U.S. Steel in 2009, but the suit was quietly dropped in 2011, and full details of the reasons why have never been released.

While it’s known the deal included new promises for capital investment and community grants, a motion will be heard in Superior Court Monday asking for the full deal to be made public to assist stakeholders in the restructuring process currently underway.

The Ontario government and the Steelworkers Union are also objecting to U.S. Steel’s claim that the Canadian operation owes its parent more than $2.2 billion.  There are concerns the company will use the claim to avoid paying other creditors including the underfunded pension plans.