The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by Robert Howard, published in the August 28, 2007 edition
Stelco's sale full of promise
The Hamilton Spectator
(Aug 28, 2007)
The sale of Stelco to U.S. Steel appears to
be a positive outcome for the Hamilton steelmaker -- and a far better one than
many expected as recently as last year. There is good reason to be optimistic
about Stelco's continuing and important presence in Hamilton for years to come.
The sale, which U.S. Steel says should close
by end of year, would bring an end to one of the most troubled chapters in the
company's history.
Even during the worst labour strife through
the decades, no one doubted the company would continue to exist. That wasn't
true after Stelco entered bankruptcy protection in 2004. There was a real
possibility that Stelco could cease to exist. Even after the company emerged from
protection, continuing losses did not inspire confidence in Stelco's survival.
But now it seems likely that the deep
insecurity about Stelco's future will lift and that workers and pensioners may,
for the first time since 2003, feel confidence about their pensions and
retirement benefits.
Of course there is some lingering sense of
loss in the acquisition of an essential part of local history to a U.S.-based
multinational corporation. The absorption of what used to be the Steel Company
of Canada into U.S. Steel -- and the end of any Canadian-owned presence in the
global steel industry -- is hard to swallow. That's fair. But any nostalgia is
for a company that essentially ceased to exist after it emerged from bankruptcy
protection last year with owners who made it clear Stelco would be sold.
This agreement with U.S. Steel appears to be
the best option for workers and retirees, for Hamilton's employment and
industrial base, and for possible spillover benefits into Hamilton's port. The
issue was Stelco's survivability and sustainability, and this is good news for
the company, for its workers, and for the city.
Stelco will remain part of the North
American steel industry/market, which is not a small consideration. U.S. Steel
CEO John Surma is bullish on the worldwide market for North American steel and
says he's confident that both major Stelco operations -- Lake Erie and Hamilton
Steel (the former Hilton Works) -- will be strong producers for the long term.
Stelco slab steel produced here would be
processed at U.S. Steel plants in Michigan and Illinois. That plan may utilize
Great Lakes transportation, which would mean more business for Hamilton
Harbour.
U.S. Steel is also seriously considering
spending $100 million to upgrade Hamilton Steel, which would be a solid
indicator the new owners see a long-term future for the aging but still
productive plant.
What's hugely significant in this deal is
the security offered to Stelco's pension plan. Assuming the $1.3 billion in
pension liabilities and making a voluntary $31-million contribution to the
pension plans puts U.S. Steel's reassurances on solid ground. Also reassuring
is that U.S. Steel has numerous contracts with United Steelworkers of America.
There should be little "culture shock" in working with the Canadian Stelco
locals.
It's been a tough several years for everyone
with a stake in Stelco -- and that includes every citizen of Hamilton. If
things are as they seem and go forward as hoped, this may be the soft landing
everyone longed for.