The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following Editorial by Mark McNeil published in the October 5, 2005
edition
By Mark McNeil
The Hamilton Spectator
(Oct 5, 2005)
Over the nagging months of Stelco's
bankruptcy protection, people in Hamilton have been through moments of hope,
stretches of despair and the numbing torture of wondering whether the process
will ever end.
But through it all, one key player has stood
out as a frustrating impediment to a successful conclusion -- United
Steelworkers Local 1005.
Unlike other union locals that have
fully participated, 1005 president Rolf Gerstenberger and his supporters
believe that refusing to take part will keep members from giving up concessions
in their contract, which expires next summer.
But a contract can become of little
value if the company is forced into bankruptcy. So it has always been in the
interest of the union to have a hand in drafting a survival plan.
Gerstenberger's duty to his local
members is better served by engagement than estrangement. It is unwise and
unproductive to hold onto the collective agreement like some kind of flotation
device in a stormy ocean.
What makes this even more troubling is
1005's most recent decision to reject Stelco's restructuring deal on grounds
that it supposedly poses "enormous risks."
Sharon White, a lawyer for Local 1005,
told court on Monday that the company's strategy to emerge from bankruptcy
protection does not address the core problems Stelco faces and leaves it with
too much debt.
Justice James Farley then quipped:
"I'll look forward to 1005's proposal for the company's salvation. I've
got the stones, why don't you start building as opposed to throwing."
The judge's words go to the heart of
the matter, despite Gerstenberger's assertion that Farley's comments were
"very inappropriate ... We're the ones who make the steel so we're
building everything ... We had legitimate concerns to raise. It's far from
casting stones.''
Fortunately, Farley did not let the
1005 recalcitrance -- or bondholder non-acceptance, which is another big
problem -- stand in the way of pushing the process further. Yesterday, he
agreed to extend bankruptcy protection until Dec. 5, and he approved Stelco's
deal with Tricap Management as the basis for a final deal.
It is hoped that all stakeholders -- no
matter who they represent -- work constructively in the weeks ahead to develop
the Tricap deal into final settlement.
Local 1005 needs to be an active
participant, making a positive contribution, because throwing stones solves
nothing.