The Stel Salaried Pensioners Organization wishes to
thank The Hamilton Spectator for permission to post the following article by
Reporter Steve Arnold, published in the November 8, 2005 edition
By Steve
Arnold
The Hamilton Spectator
(Nov 8, 2005)
Bankruptcy law reforms that protect
wages and pension contributions are winning support from leaders of Canada's
labour movement.
Hassan Yussuff, secretary-treasurer of
the Canadian Labour Congress, said yesterday the CLC will back the proposed
changes when they go to review by the Commons Industry Committee later this
month.
Although some local steelworkers oppose
the legislation, the CLC's second-in-command described the reform package as
"a good piece of legislation that can be improved."
One of those improvements, he added, is
a need for more clarity on how collective agreements are to be treated when
companies like Stelco seek court-ordered protection.
Under the reforms introduced in June
and given second reading recently, claims for unpaid wages and vacation pay
will be ranked ahead of secured creditors such as banks.
Those claims, to a maximum of $2,000
will be paid from the failed company's current assets such as accounts
receivable, inventory and cash.
A government-sponsored Wage Earner
Protection Program would pay up to $3,000 in back wages and vacation pay.
Regular contributions to pension plans
will also rank ahead of the claims of secured creditors.
"The wage protection fund means
that workers won't have to wait endlessly for their last pay cheque,"
Yussuff said. "Most workers in a bankruptcy situation are only one or two
pay cheques from not having any money and that is simply an unfair
situation."
The one area where workers' groups have
lingering doubts is over how collective agreements will be treated. While the
new law doesn't follow the American example in which bankruptcy judges can
simply tear up labour contracts, workers want clear language saying only they
and their employer have the right to negotiate changes.
"A collective agreement is a
legally binding agreement and both sides have to agree to accept changes to
it," Yussuff said.
"The legislation has to be
explicit that only the parties to the agreement can decide if things are to be
changed."
Under the proposed reforms, a
struggling company can ask the court to issue a notice inviting unionized
workers to reopen their contract.
If they accept that invitation and make
concessions, they can present a bill for the value of lost wages and benefits
as part of the debt load to be restructured.
In September, five busloads of Hamilton
steelworkers took that concern to Parliament Hill in a demonstration.
At the time, Rolf Gerstenberger,
president Local 1005, said "Until now, labour contracts have had a
different standing than loan agreements and other things and they want to
enshrine it in law that they don't."
Workers used yesterday's Stand Up for
Stelco rally at city hall to emphasize their opposition to the new legislation
as some wore T-shirts and carried signs that read Oppose Bill C-55.
sarnold@thespec.com
905-526-3496