The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by Reporter Tara Perkins published in the September 23, 2004 edition
|
Sep. 23, 2004. 12:54 AM |
|
Slater's non-union retirees lose
benefits |
|
Under the new owners, their pensions also take a
big hit |
|
By Tara Perkins |
|
Non-union retirees at Slater Steel have lost their benefits and will see a major cut in their pensions under new owners. Delaware Street Capital bought the Sherman Avenue North Specialty Bar Mill from bankrupt Slater earlier this year. It guaranteed the pensions and benefits of unionized workers. But officials say that deal didn't cover about 100 retired staff. Those retirees have discovered that their pension income could drop by up to 10 per cent. and their benefits -- including drug and dental -- have been terminated. They've retained a lawyer and are considering a lawsuit "What happened is the non-unionized employees of Slater assumed that they were going to be looked after," said Hugh O'Reilly, a Toronto lawyer who is representing the former employees. "Imagine going down to the drug store to get your prescription filled, they discovered 'oh no, you're not included.'" Delaware lawyer John Porter countered that pensions and benefits were "never part of our deal." He said he has not seen any statements DSC made that would suggest otherwise. When the purchase was being finalized this spring, Bill Baker, president of United Steelworkers Local 4752, told The Spectator that "when DSC came to the table, they knew pensions and retirement benefits were not to be touched." And the union did receive a promise of no cuts in wages or pensions. But only for their members. "It's a shock," Martin O'Grady said yesterday. He retired from Slater Steel in 1992, after 36 years on the job. Now he's one of the retirees who are using their own money to hire O'Reilly. The lawyer said the workers are going to lose somewhere from 6 to 10 per cent of their pensions, even if the Ontario Pension Benefits Guarantee Fund picks up some of the tab. A spokesperson for the Financial Services Commission of Ontario confirmed the pension plan will be wound up, but said it's too early to say how much the guarantee fund might provide because an administrator is still looking into the situation. O'Grady said a number of the retirees left the company relatively young, and some are on extensive medication. "People devoted their lives," O'Reilly said. "They had no concept. And what makes it worse is, because of the ways the stories (about the new buyer) came across, they thought 'geez, we're looked after here.' By the time they got involved, the train is really far down the tracks." Porter said that because these people had already retired, any obligation to pay for their benefits rests with Slater. O'Reilly said "we've spoken to (that) company such as it is, but it's moving into liquidation." As for action against DSC, O'Reilly said "we haven't launched a lawsuit formally at this stage. We are in the process of getting an order that will have us representing these folks and we are considering our legal alternatives." tperkins@thespec.com 905-526-4620 |