The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by John Burman,  published in the August 28, 2007 edition

 

Hopeful signs TheSpec.com - Business - Hopeful signs



The Hamilton Spectator

(Aug 28, 2007)

Stelco workers and retirees like U.S. Steel's style

Stelco workers and retirees are hopeful U.S. Steel's purchase of Stelco means security for pensions and medical benefits and a culture change on the shop floor.

Don Green, a 30-year Stelco veteran, likes U.S. Steel's management style so far. He says he believes what employees have seen from Rodney Mott, who came from the Pittsburgh-based company in the first place, says a lot about what can be expected in the future.

"This is the first time I have seen in a long time that the workers are standing behind the company ... behind Stelco itself," said Green, adding workers have appreciated a change in management style from "the good ol' days."

"This group of guys, (Stelco CEO Rodney) Mott and the others, are proven winners. But it's not like they're out there just to 'win, win, win.' They are giving a little back to the employees too.

"It's things like the production payment plan that all of a sudden the (workers) are working with it."

Green said there's plenty to be hopeful about for the workers if the management approach they have seen represents how U.S. Steel does business.

"Why, look at last year. They had that big dance for the workers and we never had anything like that in the 30 years that I have been there. Maybe it wasn't a big deal to some but it made the guys feel like they were part of an organization that cared about them."

Pensioners, workers and politicians contacted agree if Stelco had to be sold to be profitable then U.S. Steel is a good match.

"It bodes well for Hamilton," said Mayor Fred Eisenberger who got a call from Ontario finance minister Greg Sorbara, late Sunday night advising him of the sale.

At first glance, the deal appears positive for the city in terms of job retention and investment, he said.

If a sale to an outside company had to happen, this appears to be the best outcome, added Eisenberger.

"For a sales perspective, it's everything one could want."

Ray Silenzi, retiree and a past president of United Steelworkers Local 1005, believes the sale has plenty for retirees and workers to feel good about.

"It is a plus, plus, plus for everyone," Silenzi said.

If U.S. Steel spends $100 million to upgrade Stelco equipment, takes care of the retirees and adds to employment in the city, then current employees, retirees and the city in general will benefit, he said.

If U.S. Steel can do that,"it's got to be a good deal," he said.

All those contacted by The Spectator noted the sale to U.S. Steel means the end of the last independent steelmaker in Canada. "History is in the making," said one long-time Stelco employee who asked not to be identified.

Silenzi also said he is encouraged by U.S. Steel's "style."

"(U.S. Steel) had some closures too when steel wasn't doing so good years back," said Silenzi.

"They had to cut off medical benefits and had some rough times but they made a deal with the steelworkers and said would take a share of the profits and put it into a fund to pay for medical benefits for retirees," he said.

"They did that. A couple years ago that fund was closing in on a billion dollars for medical benefits. They have experience, that says a lot."

jburman@thespec.com

905-526-2469

With files from Nicole MacIntyre, The Spectator