U.S. Steel Lockout Betrays 'Net Benefit' Promise to Canadians

HAMILTON, ON, Nov. 8 /CNW/ - U.S. Steel's lockout of 900 Hamilton employees is the latest example of corporate and government failure of Canadian working families.

"These workers and their community were promised by their government and U.S. Steel that they would benefit from this foreign multinational's takeover of Stelco," said Ken Neumann, Steelworkers National Director for Canada.

"Instead, the takeover has resulted in pain and suffering for working families in Hamilton, Nanticoke and other communities. U.S. Steel's 'net benefit' has consisted of plant shutdowns, production cuts, lost jobs and labour disputes," Neumann said.

U.S. Steel locked out 900 workers at its Hamilton Works facility on Sunday for refusing major, unilateral contract concessions. The cuts include dramatic pension changes that also would affect 9,000 retired workers receiving pensions.

"When it made its 'net benefit' promise to Canada, U.S. Steel was fully aware of pension plan issues and its obligations to workers and pensioners," said Rolf Gerstenberger, Steelworkers Local 1005 president.

"The union offered a status-quo contract and to keep working while we negotiated a settlement in good faith," Gerstenberger noted. "Instead, U.S. Steel shuts down the plant and locks out workers for the first time in our history. At the same time, it ramps up production outside Canada."

"Whether it's Vale in Sudbury and Labrador, or U.S. Steel in Hamilton and Nanticoke, foreign corporations show no qualms about breaking their commitments and inflicting economic pain on our communities," Neumann said.

"Nor do they appear concerned about facing any serious consequences from our federal and provincial governments," he added.

"It's high time that our federal government adopts new legislation to protect against such disastrous foreign takeovers."

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