The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Lisa Grace Marr, published in the
April 1, 2006 edition
By Lisa Grace Marr
The Hamilton Spectator
(Apr 1, 2006)
Rodney Mott likes problems, seeks them out in fact. That
takes some of the mystery out of why the man who made $42 million last year
would take on the job of president and CEO of troubled Stelco. All eyes will be
on Mott as he takes the helm of Stelco when it emerges from bankruptcy
protection, reissues its stock and faces tough contract talks with steelworkers
Local 1005. He certainly didn't take the job for the money. Stelco has not
disclosed his salary -- it's expected to be in future publicly filed documents
-- but it's unlikely to match the millions he made as president of
International Steel Group in the United States last year.
Mott's no stranger to Stelco. He began evaluating the
Hamilton company while still running ISG. Nothing happened because "we had
a lot on our plate." He left ISG after Mittal's historic $4.5-billion
purchase and was pleased when some of Stelco's new investors approached him
about the steelmaker he was already eyeing.
"So far I've been very fortunate to pick companies with
a lot of upsides and been very successful at either start up or turn
around," he said this week, before a meeting with Stelco's board. "I
enjoy it."
One of Mott's top jobs in his new position will be
navigating a potentially tough bargaining year with Local 1005. With the deal
expiring July 31, negotiations will likely begin soon.
Mott isn't wasting any time. A few days after he was named
to Stelco's top job, he called Bill Ferguson and asked him out for lunch.
Ferguson, the head of Lake Erie's union, met him at the St. George Arms in
Caledonia. The two had coffee, salad and conversation.
Ferguson said he came away with "a good, positive
feeling.
"You don't have to get along with someone all the time,
but you have to be able to work through problems with them," he said.
"We're in a new era of being able to be creative and work through
issues."
Many feel Mott can do that. He is lauded as the saviour of
the American domestic steel industry -- creating a new template for union job
classifications, turning near-death companies into thriving entities and
starting up new firms while at ISG and Nucor.
Even Mott's natural opponents seem to admire him and say
he's a good fit for Stelco.
"Rodney is not the most humble guy," said Leo
Gerard, president of the United Steelworkers of America, recently.
"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."
Rolf Gerstenberger, president of Hamilton's Local 1005, came
away from his introduction with more trepidation.
Mott, Tricap Management executives and the union executive
held a more formal meeting where the new boss laid out his philosophy to the
group.
Gerstenberger felt "cautious" when he left the
meeting.
"He was very smooth. He's probably very competent. He
also said to trust him," he said.
"The last time we heard that was in December 2003 when
(CEO) Courtney Pratt asked us to trust him. Then in January he filed for
(bankruptcy protection). So we're cautious."
Gerstenberger said he was first introduced to Mott's
management style three years ago when Stelco told him U.S. steelworkers were
making huge concessions on costs, like pensions, to compete. They wanted the
same concessions from 1005.
"We are not impressed with what happened to 240,000
pensioners whose pensions were reduced 20 to 70 per cent and some lost health
benefits for a while," said Gerstenberger.
Others view Mott differently.
David Phelps, American Institute of International Steel
president, said Mott's contract with ISG unions became the template for the
industry.
He said as distasteful as it may be for Stelco's unions,
they have to recognize changes in the industry. He said Stelco's Hamilton plant
is an example of an "old-line union contract rendering a company
non-competitive."
Mott doesn't think that characterization is fair.
"The tone coming out of the union leadership -- I won't
say it was extremely positive but it was reasonably positive. It was very
typical of our industry, not the way they've been tainted from their reputation
over the past few years," he said.
"They recognize the need to share the
responsibility."
Mott also acknowledged that, while his contracts with
workers at previously plants were successful, they can't be applied directly to
Stelco.
"You can't just go through and just apply that same
contract. That won't happen," he said. "We'll go through and look at
that contract, but we'll also look here at what's important to the
workers."
Mott has indicated he plans to live in Hamilton while
keeping his home in South Carolina. After brief visits, he said Hamilton
"seems like a nice town."
lmarr@thespec.com
905-526-3992