The Stel Salaried Pensioners Organization wishes to
thank The Hamilton Spectator for permission to post the following article by
Business Reporter Steve Arnold published in the June 25, 2004 edition
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Jun. 25, 2004. 12:51 AM |
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A CHORUS OF SUPPORT |
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Candidates promise support on Stelco restructuring,
but disagree on who should pay for it |
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By Steve Arnold |
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Federal election candidates gave Stelco salaried retirees the words they expected to hear last night, promising the company will get help to restructure. Candidates for the Liberal, Conservative and New Democratic parties told about 2,000 retirees they believe Ottawa should do something to ensure Stelco comes out of bankruptcy protection strong and stable. It's in how that goal will be accomplished that the three parties hoping to form a government after next week's election differ. Liberal Tony Valeri (Hamilton East-Stoney Creek), Conservative Tom Jackson (Hamilton Mountain) and NDP hopeful David Laird (Burlington) all stressed the need to rework the Companies Creditors Arrangements Act to put workers and their pensions at the head of the line of creditors. They also sang in chorus on the need for changes in trade laws to ensure Canada doesn't become a dumping ground for subsidized steel from other countries and on the value of a national pension benefits guarantee fund to insure pension cheques against underfunded plans. Their harmony disappeared, however, on the thorny question of putting public money on the table to help the steelmaker. "There is a real need for a federal financial contribution to Stelco because the restructuring cannot take place on the backs of workers," Valeri declared. "We are committed to seeing that Stelco gets the financial assistance it needs for a successful restructuring." To back that point, he reminded the audience of the $50 million in loan guarantees provided to Algoma during its struggles to restructure -- struggles that have turned the company into a profitable and stable enterprise. He also noted the Liberal's recent promise of $100 million to Ford of Canada to aid in the development of a flexible manufacturing plant in Oakville. "Those actions are a clear indication that we will be there for Stelco," he said. Laird also promised an NDP government would be committed to providing federal loan guarantees for Stelco and would shelter the company while it restructures with a protective wall of tariffs. The question of public money was a difficult one for Jackson. While he said he believes support should be provided his party leader, Stephen Harper, has been adamant in vowing to end such "corporate welfare." It was a weakness Valeri and Laird didn't fail to exploit. "Harper is fundamental on this issue. He's been clear that he will not support industry in that way," Laird said, while Valeri said such support can be justified when it promotes economic growth. "I just don't consider it corporate welfare when we can leverage an investment and save jobs," he said. As published on their Internet sites, the question of pension protection gets little attention in the election platforms of the Liberal and Conservative parties. The Liberals, for example, mention nothing about reforming pension legislation to answer the concerns raised by the Stelco retirees. The party does promise an increase in the guaranteed income supplement which, it says, will raise the incomes of the poorest retirees about 7 per cent when fully implemented. The only note of retirement concerns in the Conservative platform is a promise to introduce a new Registered Lifetime Savings Plan that will allow Canadians to withdraw their money tax-free. Only the NDP has a fully thought-out pension policy which deals directly with the concerns raised by the Stelco retirees. As published on its website the party's platform declares, "After watching many pension plans lose value on the stock market and with many pension plans underfunded as a result of stock-induced contribution holidays and corporate greed, many workers are increasingly concerned about their retirement security. It's time to protect pensions and Canadians' retirement by using those funds in safe, innovative ways and by increasing the number of Canadians contributing to the CPP through creating jobs and toughening the rules for private pensions." Among the policies the party proposes to accomplish that goal: * Establishing an employer-funded federal pension insurance program. * Making employees and their pension plans the preferred creditors in the event of corporate bankruptcies. * Making it illegal to underfund private pensions. The Stelco salaried pensioners organization has raised more than $100,000 since it formed, money used to hired a Toronto law firm to argue for their rights to a secure retirement. To date they have won a court order preventing Stelco from changing their pension and benefits packages without court approval. They have also held four meetings with the company to press for more information. sarnold@thespec.com 905-526-3496 |