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 August 31, 2004 edition

 

 

Aug. 31, 2004. 12:56 AM

Stelco staff weigh cost, benefits of retirement

By Tara Perkins
The Hamilton Spectator

Hundreds of Stelco's salaried workers met with a company official yesterday in an effort to clear up questions about their future.

Stelco is actively encouraging employees to retire. The steelmaker wants to emerge from bankruptcy protection with a trimmed workforce.

It has promised the salaried workers they will receive full retirement benefits if they retire before Sept. 30. That has workers wondering what happens after Oct. 1.

Many employees are weighing whether or not to leave in the next month, and want to know what will happen if they don't, said salaried representatives.

The Stelco and Subsidiaries Salary Employees Association (SASSEA) hosted the meetings, where employees were able to ask questions of the steelmaker's director of human resources.

A significant number of salaried workers have been retiring recently, said Larry Ciancone, a member of SASSEA's steering committee.

Because of that, the salaried workers "don't expect mass terminations," he said.

Frank Sergi, another steering committee member, said it's important to point out that "at this point employees have lost absolutely nothing."

"To date there's been nothing put on the table that's a concession or demand," said Pat Mousseau, of SASSEA.

But he expects the first demand to be changes to employee benefits.

In a letter to salaried employees, Stelco CEO Courtney Pratt said "the company has looked at a number of options for reducing the cost of its group benefits program -- both for the active employees and for retirees."

Stelco is looking to reduce the amount it pays for prescription drugs, and may eliminate the life insurance it offers. Right now, the company pays the full amount for drugs and hospital stays. It is considering reducing that coverage and having the employee pick up some of the costs.

Ciancone said information for salaried workers has been slow in coming.

"Negotiations (with Stelco) are starting to move forward now that the union's talking," he said.

As of March, Stelco had about 1,800 salaried workers.

For more information on SASSEA see www.sassea.ca.

tperkins@thespec.com 905-526-4620