The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by Reporter Gillian Livingston published in the February 18, 2004 edition

Feb. 18, 2004. 07:15 PM

Ont. government to set up federal-provincial group to examine steel industry

By GILLIAN LIVINGSTON

TORONTO (CP) - The Ontario government wants to examine rules on company pension plan contributions and other legislation that may be harming steel producers in a proposed federal-provincial committee that would study issues impacting the hard-hit industry.

Premier Dalton McGuinty and Hamilton MPP Marie Bountrogianni spoke of the need for a Canadian steel strategy committee after meeting Wednesday with national and local members of the United Steelworkers union, which represents workers at three Canadian steel companies currently operating under bankruptcy protection.

What the national representatives asked of the premier is his support in having a federal-provincial committee to look very seriously at the steel industry, Bountrogianni said following the meeting.

The premier did not only agree to do this but also agreed to gather support with his provincial colleagues across the country to do this, said Bountrogianni, who is also Minister of Citizenship and Children's Services.

The committee would look at both federal and provincial legislation and legislative changes that have impacted the steel industry as well as the workers.

Hamilton-based Stelco Inc., Slater Steel of Mississauga, Ont., and Montreal-based Ivaco Corp. are all currently restructuring their businesses under court protection from creditors.

Bountrogianni said the Ontario government also wants to look at pension rules that allow companies to take holidays on contributions.

In bankruptcy court filings, Stelco claims it has a $1.25-billion deficit in its pension plan - in other words, pension payments it couldn't cover if the business closed. Critics say pension contribution holidays which allow companies to delay funding their plans, can later put the plans at risk of falling into such deficits, particularly when stock markets go sour.

Bountrogianni said federal legislation surrounding measures to curb dumping of imported steel into the Canadian market should also be examined.

The Steelworkers want all levels of government to come together to save the country's steel industry and its jobs as well as help struggling companies get back on solid financial footing, said Lawrence McBrearty, national director of the United Steelworkers of America, who was at the meeting.

McBrearty said this strategic committee would include representatives from steel unions, steel companies, provinces with steel companies, and the federal government.

It's to develop a long-term strategic plan to save the steel industry and the jobs in Canada, McBrearty said.

So far, the union hasn't asked the provincial government to put money on the table to help Stelco restructure.

We're not at that stage yet, he said.

Union representatives from Stelco and Ivaco were also at the late afternoon meeting.

Steel workers are worried about their jobs and the fate of the pensions as these major companies rejig their operations, Stelco being the most recent to filed for protection from creditors.

Earlier Wednesday, before a cabinet meeting, McGuinty said he understood the concerns workers at Stelco have about their jobs and the impact the company's restructuring will have on their families and their community.

I want to get sense of their take on the broader issues as well about what's happening to the steel industry not only in Canada but North America and what role they think we might play in helping to turn that industry around, he said.

It's too early to make a call as to exactly the role that we want to be playing but we do want to help.

After Stelco filed for bankruptcy protection last month, the Ontario government assigned former Molson CEO James Arnett to be their adviser to the steel industry.

This was the first meeting McGuinty had with Stelco and steelworker representatives since it filed for protection, and Arnett is slated to meet with Stelco union representatives on Thursday.