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(Updated)
U.S. Steel has tabled an offer to settle some of the concerns the city of Hamilton, the Ontario government and the steelworkers union have about the company’s proposed restructuring plans.
The first day of creditor protection hearings for U.S. Steel Canada’s operations was adjourned early today to allow lawyers to continue negotiating.
Court was so packed this morning they had to set up an overflow room to accommodate the crowd. But those hoping for answers are still in the dark as negotiations will continue behind closed doors for at least one more day.
A bus carrying current and retired steelworkers left from Hamilton early Monday morning for the hearings.
Bob Mann, retired steelworker: “The end result time after time turns out to be disastrous for working people and we hope to turn the world upside down this time, and fight this and get some sort of justice out of this courtroom.”
But after an hour of in-chamber negotiations, Justice Geoffrey Morawetz adjourned court until 2pm Tuesday so talks could continue.
Hamilton East Stoney Creek MPP Paul Miller: “There has been an offer by the company. He wouldn’t give me any details on the offer. Obviously it’s sacred right now through negotiations.”
Miller says he was surprised to learn of the offer: “I’m assuming U.S. Steel is not on solid ground or they would not be asking for these extensions.”
U.S. Steel Canada — operating in Hamilton and Nanticoke — is protected by the court from creditors until October 15th. It wants an extension until January 23rd.
The Ontario Government, the city of Hamilton and the Steelworkers Union are objecting to conditions to a proposed 185 million dollar emergency loan from the company’s American parent to keep Canadian operations running during restructuring. Something Hamilton Mayor Bob Bratina says changes the priority list of creditors: “That supposedly is negotiated by all stakeholders that DIP approach. But all stakeholders were not, this came out of Pittsburgh.”
Local 1005 President Rolf Gerstenberger says U.S. Steel is using the so-called ‘debtor in possession financing’ to get out of their obligations: “It’s outrageous that in this country that’s not illegal is that you can go after pensioners for their pensions and benefits after they’re retired and you don’t have to live up to those commitments. So we’re fighting that.”
This afternoon U.S. Steel issued a statement saying in part:
“U.S. Steel Canada still intends to seek court approval for a stay extension, DIP financing, a key employee retention plan and an appointment of representative counsel for non-USW active and retired employees, all of which are fundamental steps toward the successful restructuring of this business with due regard to all stakeholders’ interests.”
Again, court resumes Tuesday at 2pm.
Ontario Finance Minister Charles Sousa was asked if U.S. Steel has approached the province separately from the CCAA protection it’s seeking in the courts. He said the Liberal government is hopeful for ongoing discussions, but they haven’t had any. He also says the government is trying to protect retirees, employees and the province: “Does the province have the cash to bail out pensioners? So the insurance fund, which was not the provinces obligation, it’s what we put in the fund to protect them. And that will be available to the retirees and those that are held in the pension plan.”
You have put forward several hundred million dollars bailing out public sector pensions over the last few budgets. Why is this any different from a public sector pension?: “well, the obligation is U.S. Steel, let’s keep that in mind. And what we want is the company to make good on their obligations. We should be resolving that part before we do anything else.”
