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 14, 2006 edition
By Meredith Macleod
The Hamilton Spectator
(Mar 14, 2006)
Stelco's new CEO is a multimillionaire thanks to his ability
to turn around bankrupt steel companies. And he's given up a life of leisure to
come to Hamilton.
Along with financier Wilbur Ross, Rodney Mott built International
Steel Group into one of the world's biggest steel companies in just three
years.
When Mott left ISG last year, his salary, bonuses and stock
package was worth more than $42.7 million.
"Rodney is not the most humble guy," said Leo
Gerard, president of the United Steelworkers of America.
"But he has a lot of confidence in his ability, and I
found him to have a lot of integrity. I found him to be the kind of person you
could make an arrangement with on a handshake, and I can tell you I haven't
experienced that at Stelco in 15 years."
The 30-year steel veteran will take over Stelco when it
emerges from a marathon bankruptcy protection on March 31. It's Mott's first
foray into Canada and many steel insiders say Stelco is lucky to have landed
him.
But it could mean big changes are afoot at Hamilton's steel
giant. Under Mott, ISG bought bankrupt steel mills and got them running again
based on profit-sharing, decentralized management and leaner workforces.
ISG was sold to Mittal Steel last April in a blockbuster
$4.5-billion US deal that created the world's biggest steel company. But Mott's
roots in steel are rather humble and formed on the shop floors of rural
minimills that make steel from scrap. For much of his career he worked for
Nucor, a company that began small and grew into one of the biggest steelmakers
in the U.S.
The Nucor approach was to have a lean, non-unionized staff
who worked in teams and were expected to give ideas. The wages were low but
bonuses were high.
"They hired farm boys who knew nothing about steel and
trained them," said U.S. steel industry expert John Stubbles.
He says Mott's biggest hurdle will be in bringing some of
that attitude to Stelco. "If the unions won't go along with him, the
company will fail. Unionized companies are on the rocks everywhere."
Since leaving ISG 10 months ago, Mott, 54, has been golfing
and visiting with family in Florida and Indiana. The father, grandfather and
South Carolina resident plans to start looking for a place to live in Hamilton
in April.
"He knows the business inside and out, he is very
experienced in dealing with restructurings and unions and he's got good
relations with steelworkers," said Courtney Pratt, who steps aside as CEO
to become chair of the board. "He's the complete package."
Mott plans to be closely involved with contract negotiations
this year with thousands of Hilton Works employees.
With files from Steve Arnold and The Canadian Press
mmacleod@thespec.com
905-526-3408