Ruling expected tomorrow on US Steel

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It’s not the worst thing that could ever happen. But for the former employees of Stelco, and US Steel Canada, it’s pretty close. A bankruptcy judge is expected to rule tomorrow that American based US Steel will be able to suspend payments for taxes, pension contributions, and post-employment benefits. And as Scot Urquhart reports the last item is particularly hard to swallow for more than 20-thousand retired employees.

It’s not official, but there is little doubt about what’s coming.
The court has apparently accepted US Steel’s argument, that the well is dry. Unless the court orders a temporary halt to municipal tax payments, and post-employment benefits for retirees, there’s not enough money to keep the Canadian mills going.
Even a temporary suspension of these benefits will be a severe blow to former employees, according to the union who say many of those receiving benefits, are in poor health. But the really frightening thing here is the uncertainty of how long this ‘ temporary ‘ suspension, will last.

Gary Howe is the President of USW Local 1005. “The problem we see is that when these things get shut down, it is difficult to restart.”

While Justice Herman Winton-Siegel may believe that “there is no other solution”, to stave off a complete collapse of US Steel Canada, union leaders, are furious.

“I don’t buy it. I think there’s things that can be done that would soften that blow” says Bill Ferguson, President of Union Local 8782. “It’s hard for somebody with emphysema to think that ‘I can’t do without my drugs’. Hard for anybody who has cancer. Hard for anybody with any type of debilitating chronic disease, to think well maybe it’ll be two months, maybe it’ll be four months, maybe it’ll be a year.”

And it’s hard for their families, too. “It’s kind of sad to know that this may fall, and break, and everyone’s sick and dying but nobody can do anything about it. ”

Trinity Gnatuk, a grade nine student from St. Thomas More, is learning a hard lesson about the world outside her classroom. “I don’t want to see generations grow up and not have their pensions.”