Steelworkers Ask Court to Open Secret Deal Between Feds and U.S. Steel

TORONTO, April 20, 2015 /CNW/ - The United Steelworkers (USW), representing thousands of employees and pensioners, is today asking Ontario Superior Court to open a secret deal between the federal government and U.S. Steel Canada.

The secret deal was struck in 2011 when the Conservative government dropped its legal challenge of U.S. Steel's broken commitments on production and employment levels at the former Stelco operations in Hamilton and Nanticoke.

It is crucial that terms of the secret deal are provided to key parties affected by U.S. Steel Canada's Companies' Creditors Arrangement Act court case, the USW will argue in Superior Court today.

The Steelworkers union and the City of Hamilton have filed a joint motion in Superior Court, asking Justice Herman Wilton-Siegel to open the secret deal.

The union and the city "require disclosure of the settlement agreement at this time to be able to participate meaningfully and effectively in the negotiations and discussions that are currently underway," the motion states.

"They need to be able to review and understand the obligations of USS under the settlement agreement to ensure that all rights and obligations owed by the parties and in particular, by USS, have been or will be fulfilled. They also need to understand how the settlement agreement will be considered in the restructuring negotiations and how USS intends to address its obligations under the settlement agreement in a plan of compromise. USS's obligations could also affect damages claims."

It is offensive that the federal government has decided to argue in court against the release of the secret agreement, said Bill Ferguson, President of USW Local 8782, representing employees at U.S. Steel's Nanticoke operations.

"We need to know how the terms of this secret deal could affect this CCAA case and how it could affect the lives of our workers, our pensioners and our communities," said Ferguson.

"To see this government trying to keep this information hidden from us just confirms that it is squarely on the side of U.S. Steel and has absolutely no interest in supporting the workers, pensioners and families who risk losing so much."

"Our members and our community don't trust U.S. Steel or this government to do what's best for workers and pensioners," said Gary Howe, incoming President of USW Local 1005, representing employees at U.S. Steel's Hamilton operations.

"It is clear that we deserve compensation, which at the very least is a fully funded pension plan, post-employment benefits and guaranteed jobs in Hamilton," Howe said. "Our retirees deserve to live in dignity and not have to worry that what they earned will be swindled from them. The best way to ensure that is to start making steel again at our Hamilton plant."

SOURCE United Steelworkers (USW)

Bill Ferguson, President, USW Local 8782, 905-537-8782, [email protected]; Gary Howe, incoming President, USW Local 1005, 905-531-4078, [email protected]; Ken Rosenberg, Counsel to USW, 416-646-4304, [email protected]; Denis St. Pierre, USW Communications, 416-544-5990, 647-522-1630, [email protected]