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Dozens of local steelworkers were back in a Toronto courtroom Thursday, listening to lawyers argue over the fate of U.S. Steel Canada, and the process to decide who will get money owed by the company.
Rolf Gerstenberger, Hamilton Union President: “It is a scam.”
Right now, the 600 or so workers in Hamilton’s U.S. Steel plant have a two and a half year contract, and pensions for them and the nine thousand or so retirees are intact. But union members say the CCAA process will end with the steelworkers getting less.
Gerstenberger: “A room full of lawyers, they’re going to make all these decisions, but not one of them is going to have to suffer the consequences. Our members will. And they’re the ones who produce the steel. So that’s what our view is of the process.”
Hundreds of companies, groups, people, say they’re owed thousands, even millions by U.S. Steel. At this point in the proceedings, the court is trying to establish a process to decide who will get paid how much.
So far there’s no decision on that.
“(How many lawyers are involved?) Gerstenberger: “We counted 21 in the room, but someone was saying, 60-some.”
The lawyer for the province, who said he’s not authorized to comment, is arguing points to make sure environmental claims can be pursued, like those on Randle Reef, Canada’s most contaminated coal tar site. As well as pension shortfalls which taxpayers could otherwise have to foot.
Gerstenberger: “Everyone has some concern U.S. Steel is trying to pull a quick one, and trying to shaft everybody.”
U.S. Steel’s parent company south of the border has seen stock market gains since bankruptcy protection in its Canadian division. It’s reportedly also the biggest creditor at the table.
U.S. Steel lawyer Paul Steep: “Everything’s important in this case.”
The parent company of U.S. Steel in Pittsburgh is asking as much as two billion dollars to repay loans it says it made to its Canadian side. The lawyer today said that money was used to keep the company afloat since 2008. The lawyer for the province though, wants any claim over 25 million to be heard in open court. The judge could decide on the process for claims as early as Friday.
