The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Meredith Macleod published in the
March 31, 2005 edition
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Mar. 31, 2005. 01:02 AM |
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Change bankruptcy laws, union
urges |
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Steelworkers petition MP Valeri to protect
vulnerable workers |
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By Meredith Macleod |
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A group of steelworkers converged on Liberal MP Tony Valeri's Stoney Creek office yesterday, demanding his government put workers first. Representatives of the United Steelworkers of America presented the government House leader with a 10,000-signature petition in support of a private member's bill that would radically change Canadian bankruptcy laws. "Workers are treated horrendously when companies get into difficulty," Wayne Fraser, the union's Ontario-Atlantic director, said before heading in to a 30-minute, closed-door meeting with Valeri. The steelworkers say the Companies' Creditors Arrangement Act -- the law governing Stelco's 14-month restructuring drama -- and the Bankruptcy Insolvency Act leave workers out in the cold when companies fail. Unions have been lobbying hard to have the legislation changed to place a priority on protecting workers' wages, benefits and pensions. "Workers should be first on the list to recover their lost wages and pensions from the assets of a bankrupt employer, rather than last," Fraser said. Steelworkers say thousands of workers are vulnerable because there are as many as 10,000 commercial bankruptcies each year in Canada. "This law is archaic and has been used to disenfranchise people," added Bill Ferguson, president of Steelworkers' Lake Erie Local 8782. Valeri accepted the petition and vowed to present it to the House of Commons during its first week back in session. The MP for Hamilton East-Stoney Creek said he supports changing bankruptcy laws, but not the NDP-drafted private member's bill, which has received second reading in the House. Valeri says his government is drafting its own legislation that will balance the rights of workers, industry and creditors. "We have to ensure workers are protected and not subject to whims as they sometimes are now," Valeri told reporters. "There is no question that the private member's bill is too far on one side. The government has to look to strike a balance so that workers are protected but we also ensure we maintain an attractive investment climate." In an interview in Toronto, where he and 50 other Local 1005 members watched Stelco's latest court appearance, president Rolf Gerstenberger sneered at the proposed Liberal bill as a carbon-copy of American law which allows judges to tear up union contracts as part of restructuring. "We're trying to head them off at the pass on this," he said. "We don't think judges should have that kind of power." Ferguson says he's "guardedly optimistic" that changes to laws will protect workers and their pensions. "I'm hoping the Canadian government will do the right thing by pensioners." mmacleod@thespec.com 905-526-3408 With files from Steve Arnold, The Hamilton Spectator |