Local steelworkers union likely to oppose Stelco sale request
Though Stelco has officially asked to be sold to U.S. company Bedrock Industries, the union local representing steelworkers looks ready to oppose the steelmaker's formal sale request in court next week.
"We're looking at different things and we'll likely oppose the motion," said Local 1005 president Gary Howe.
"It's a very good deal for the province … but the monies that we get and the commitment we get into our pension plan is extremely lean."
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The deal has been coming together for weeks in individual agreements between key players and Bedrock, but the announcement of the formal sale request indicates the biggest step forward toward the sale yet.
Stelco, which was recently rebranded after years of being called U.S. Steel Canada, officially filed a motion in court Friday to ask for approval to move forward with the deal.
Key elements in the plan, according to the province, include:
- Operations continue at both the Hamilton and Lake Erie mills
- Retirees keep their pensions without reductions or interruption
- Retirees continue receiving benefits
- Environmental liability on the land is taken care of
However, Howe says the provincial statement is "extremely optimistic," adding that it's "extremely unlikely" that things will be as rosy as were described.
The proposed deal has support, with some conditions, from the union representing steelworkers and pensioners in Lake Erie, Local 8782 and 8782(b). But that local still hasn't settled its concerns about pensions and benefits.