The Stel Salaried Pensioners Organization wishes to thank The Welland Tribune for permission to post the following article by Reporter Mark Tayti, published in the March 25, 2004 edition

Stelco pensions shaky


CAW reviews bankruptcy protection

By MARK TAYTI, Tribune Staff

Thursday, March 25, 2004 - 09:00

Local News - WELLAND - More than 400 retired steelworkers and their widows learned Wednesday their pensions are not as secure as they had once believed.

It was all part of an information session organized by Canadian Auto Workers (CAW) Local 523 to bring retirees from Stelpipe and Welland Pipe up to speed on the fate of Stelco and its subsidiaries.

The steelmaker is caught up in bankruptcy protection proceedings that began on Jan. 29 when the company filed an application under the Companies’ Creditors Agreement Act (CCAA).

CCAA protection is the last stop before the Bankruptcy and Insolvency Act and provides companies with some breathing room to restructure debts with their secured and unsecured creditors.

Companies retain control under CCAA protection, unlike bankruptcy proceeding where control is turned over to a court-appointed trustee.

“If things are bad under CCAA, they could be worse under the Bankruptcy and Insolvency Act,” Lewis Gottheil, legal counsel for CAW Canada told the retirees and widows during the 90-minute session at the Ukrainian Cultural Centre on McCabe Street.

Despite the limited protection offered by the CCAA, Gottheil said company pension plans are “not written in stone.”

He said there are a number of things that can happen, but the union will have a voice at the table when decisions are made concerning the future of the company and company pensions.

Gord Chatwin, president for CAW Local 523, said local representatives have been attending the court proceeding and “plan to be there every time.”

Chatwin encouraged the retirees to sign a petition aimed at pressuring the government to rewrite legislation that fully protects worker pensions.

It calls on the province to amend the Ontario Pension Benefit Guarantee Fund to provide complete coverage and protection for pension benefits.

The petition also calls on the province to intervene locally to provide protection for active and retired employees at Stelpipe and Welland Pipe.

Cara MacDonald, national representative from the CAW pension and benefit department, distributed a 19-page handout that answered questions about the current state of the Stelpipe and Welland Pipe pension plans.

“You might be a little disappointed because we don’t have any definitive answers,” MacDonald said.

Court filings report a total combined shortfall of about $1.3 billion for Stelco, Stelpipe, Stelwire, CHT Steel and Welland Pipe -- the five companies named in the CCAA application.

The Stelpipe pension is currently funded at 82 per cent for the hourly and salary plans. The Welland Pipe pension is funded at 87 per cent. The Stelco pension is funded at 63 per cent.

CAW area representative Mike Menicanin said the future status of pensions and health benefits is dependent on the outcome of CCAA restructuring.

Patty Sciarra, who attended the meeting, said her mother-in-law is currently receiving a widow’s pension from the company.

“This is not something that she should have to worry about at this point in her life,” Sciarra said. “She’s worried. I can’t imagine her losing any money off her cheque. It’s pathetic. People are asking: how did things even get to this point?”

Edna Rogers was angered by the news that her survivor’s benefits might be subject to claw backs.

“My husband Jack worked hard all his life and now that he’s dead the government has been taking money at every turn. I shouldn’t have to worry about anything anymore — but I’m worried. We raised seven children in this city and never took anything from anybody.”

She left the meeting encouraged by the fact “the union is behind us.”

Terry Rogers, Edna’s son, also recently retired and was worried about the future.

“Sure I’m worried and I’m worried about my mother, too. Many of the widows are moving in with their kids because they can’t make it on their own.”

ID- 62276