The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article written by Ray Varey, published in the October 11, 2007 edition
U.S. Steel has served Slovakia well
Turned around
failing steel plant while contributing to Kosice's quality of life
The Hamilton Spectator
(Oct 11, 2007)
Stelco workers are justly nervous about the
United States Steel takeover of their plant. Who knows what their new owners
from south of the border have in mind? Pensions, long-term plans, downsizing
and outsourcing are all legitimate concerns if you're counting on bringing home
a paycheque or planning for retirement.
In 2000, United States Steel (USS) bought
East Slovak Steelworks, the local steel mill in Kosice, Slovakia, and one of
the largest in Europe.
USS was interested in the skilled workers,
lower labour costs and turning a profit.
I observed USS in action for the past two
years as director of QSI Kosice International School. USS created this school
to educate the children of the plant managers, accountants and executives
brought in to run the steel plant more efficiently. My observations on how USS
operated and how the company dealt with its workforce and the community, may be
of interest as this major American steelmaker is coming to Hamilton.
Kosice is a city of 250,000 in eastern
Slovakia, about a 20-minute drive north of Hungary and 90 minutes from Poland
and the Ukraine. The city has a 13th-century medieval cathedral set in a
vibrant city core with a busy pedestrian precinct and shops that are varied and
successful. The local steel plant is the largest employer and the economic
engine for the region.
When USS bought the Slovak Steelworks it was
in a state of decay and losing money. Those who ran the mill after communism
collapsed were milking it for personal gain. This subsequently led to court
cases and jail terms for some. The plant was in rough shape and getting worse.
USS took over with some conditions. They
were to maintain the employment levels for 10 years. They were to meet the
environmental emission standards set by the EU.
They were to foster economic development in
the region.
Their goal was to revitalize the steel mill
and turn it into a profit maker. USS believed that the skilled Slovak workforce
harnessed with U.S. Steel's strong American plant management and marketing
skills would create a money-maker. From my observations, they have been
successful in accomplishing these goals.
USS is sensitive to its role in the
community. Will it be as sensitive to Hamilton's needs beyond the steel mills?
In Kosice, its mandate is to make steel but
to also support the community with health care, education, charity, sports and
cultural projects. USS values its reputation and has brought a more ethical
method of doing business to this steelmaking operation. USS has been a good
corporate citizen in the seven years it's been in operation in Slovakia.
Many events in the city and surrounding
areas receive support from this generous benefactor.
The Economic Development Center created by
USS has been successful in bringing other foreign industries to the region. For
example, moulding and auto transmission plants from the U.K. and Germany have
settled in the area as a result of their efforts.
This has brought employment and economic
growth.
In health care, this American conglomerate
has provided money for the upgrading of local hospitals and health-care
facilities. At last year's Christmas concert sponsored by USS Kosice, president
David Lohr announced that fundraising activities by steelworkers had raised
more than $160,000 for hospital equipment.
USS has been very active on the local sports
scene. Kosice hosts the oldest marathon in Europe each October. A local
mini-Olympics with 1,400 participants was organized last fall. USS has been a
major sponsor of these events. They support the local hockey team and provided
considerable money to complete the Steel Arena. This project had been stalled
for a number of years. It was USS funding that led to its completion. Bryan
Adams and George Michaels entertained sold-out crowds in this facility last
spring.
USS supports local charity work. Last
Christmas they did a major fundraiser across the region and donated generous
cheques to four Slovak orphanages. They run an International Childrens' Day and
St. Nicholas' Day that entertain the children of Kosice.
Slovakia is the home to many Romas or
gypsies. This group traditionally suffers from high unemployment rates and
serious social issues. USS developed a plan to employ Romas in their
steelmaking operation. The verdict is still out on whether this has been a
successful intervention or not.
Kosice has an excellent philharmonic
orchestra with an international reputation. USS provides funding for its
extensive program and sponsors touring musical groups.
Will USS be good corporate citizens in
Hamilton as they've been in Slovakia? Only time will tell.
USS moved into this fragile economic region
of Eastern Europe and provided generous support for community initiatives.
There were many people in town who were skeptical about having this American
firm control their major steel mill and the area's biggest employer.
I think most Slovaks would agree that it's
been a good fit. USS has maintained employment levels, improved working
conditions and health and safety. It has revitalized a failing steel works and
has built a new plant that produces steel for the vigorous car manufacturing
industry. USS has done well in Kosice. It is perhaps money earned at their
Slovak operations that supported the purchase of Stelco.
Kosice is not Hamilton, but it's evident
that United States Steel has acted as a responsible corporate citizen in
Kosice. It has significantly enhanced the quality of life in that community.
It's the responsibility of USS and Stelco management and local politicians to
ensure that USS makes contributions to support Hamilton's culture, sports, and
health care as well as making steel.
Ray Varey lives in Hamilton. He is an educator
and a freelance writer.