The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the July 14, 2005 edition
The Hamilton
Spectator
(Jul 14, 2005)
Leaders of the United Steelworkers are
stepping up their campaign to get Stelco to shape a refinancing plan that meets
union demands for pension funding.
In a sharply worded letter to company
president Courtney Pratt yesterday, union heads demanded the company match the
controversial Tricap proposal in the restructuring plan it will file with the
bankruptcy court in Toronto tomorrow.
"It is long past time for you and
Stelco's board of directors to speak up for Stelco; not kow-tow to financial
speculators," says the letter signed by five Stelco local union
presidents, three Steelworker district directors and National Director Ken
Neumann.
"We find it inconceivable that you
would not rush to embrace our Coalition Plan with its $1.35 billion of new
committed financing and its strong commitment to the company's aptly titled
Critical Capital Spending Program and make it your own.
"We demand and expect that any
plan that Stelco files will be at least as good for the company's long-term
viability and its obligations to its most vulnerable stakeholders as is
ours."
In April, the Steelworkers signed a
letter of intent with Tricap Management Ltd., the restructuring arm of Brascan
Corp.
That plan would refinance Stelco's
debt, provide money for critical upgrades to plant and equipment and pay $500
million toward a pension deficit of $1.3 billion.
It has gained the support of the
Ontario government, unionized and salaried employees and pensioners.
Stelco rejected the plan after its
bondholders -- who must vote on any proposed restructuring -- said they would
defeat any plan that required them to compromise on their debts.
Since then, however, efforts to mediate
a settlement to the dispute have failed and the provincial government has
voiced support for the Tricap proposal.
Company spokesmen could not be reached
for comment.