The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Meredith Macleod in the February 20,
2004 edition
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Feb. 20, 2004. 12:47 AM |
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Pensioners told to lobby
government |
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By Meredith Macleod |
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It's likely that just about every Stelco salaried pensioner not vacationing down south and fit enough to make it downtown was crammed into a meeting with lawyers last night. About 1,000 non-union retirees -- from recent pensioners in their 50s to elderly employees who left their working life behind when Stelco was still a sure bet -- sat in rapt attention as lawyers from Koskie Minsky mapped out what retirees can expect in Stelco's uncertain future. The Toronto law firm has represented workers in dozens of restructuring cases, including Air Canada and Algoma. Murray Gold told the sea of grey hair that it's crucial Stelco's employees convince the provincial and federal governments to be involved with the company's restructuring and in protecting pensions and benefits. "If they're not, your level of vulnerability skyrockets. The only people who can make them get involved and do what's right are in this room," said Gold. Gold said Stelco pensioners must lobby the Ontario government to properly fund the Pension and Benefits Guarantee Fund, an insurance program that partly funds shortfalls for pensioners when their companies go under. "The PBGF, by all accounts, doesn't have near enough to cover the deficits in the Stelco fund. That, for no other reason, means this crisis is a political one." The Stelco Salaried Pensioners Organization (SSPO) was formed last fall, when it seemed the company was heading for financial trouble. Under a recent court order, the group and its 15-member steering committee now officially represent the company's 3,500 non-union retirees. About 1,250 people have officially signed on as members of the group, with more memberships signed last night. Pensioners and employees don't have any protection under creditor protection legislation, said Gold. Financial institutions and any future investors will heavily control negotiations with creditors. Under the federal creditor protection process (the Companies' Creditors Arrangements Act), Stelco can "rip up" any existing contracts, Gold said. On March 5, the pensioners group will ask a court to prevent any changes to current plans without the approval of the court. Gold cautioned that if Stelco is to create a viable future, all the stakeholders must make compromises. That will include employees past and present. "If the pain is fairly spread, then it works. If it's not the case, if there is no bending, no giving, no compromise, the process is in jeopardy." Employees and pensioners would fare much worse if Stelco headed into bankruptcy, he said. While the concern was apparent in the room, it never descended into hysteria or bashing of the company. mmacleod@thespec.com 905-526-3408 |