The Stel Salaried Pensioners
Organization wishes to thank The Welland Tribune for permission to post the
following article by Reporter Angus Scott, published in the April 6, 2004
edition
By ANGUS SCOTT, Tribune
Staff, Welland Tribune, Tuesday, April 06, 2004 - 09:00
Local
News - WELLAND - Welland’s Stelpipe may be put up for sale separately from
parent company Stelco, if the ownership is successful in obtaining court
permission.
“The
company intends, sometime in the next four to six weeks, to seek permission
from the (bankruptcy) court to enter into a sale process for Stelpipe,” said
plant general manager Jeff Fry.
The
fate of Stelpipe has been uncertain since Stelco entered into bankruptcy
protection earlier this year.
The
steel giant applied in January for bankruptcy protection under the Companies
Creditors Arrangement Act (CCAA). The court-ordered restructuring process of
Stelco covers the parent company as well as Stelpipe, Stelwire, CHT Steel and
the now closed Welland Pipe.
There
are about 400 active employees at Stelpipe represented by Local 523 of the
Canadian Auto Workers (CAW) as well as salaried employees.
“What
we’re seeking is permission to follow a process of sale,” said Fry.
The
company would develop a sale process in conjunction with the bankruptcy
monitor, and ask Superior Court Judge James Farley for permission to proceed.
“The
judge may elect not to grant the request, or he may take the request under
advisement,” said Fry. “All we can do is try.”
Fry
said he believes there is interest in the Stelpipe operation.
“A
number of individuals and corporations have expressed to us what we believe is
serious interest,” said Fry. “We’ll see how serious that interest is as the
process unfolds.”
Employees
at the plant, both union and salaried, have been advised of the company’s
plans, said Fry.
“We’re
eagerly waiting for the court to make a decision,” said Gord Chatwin, president
of CAW Local 523.
“We’re
not opposed to them doing what they’re doing,” he said. “It wouldn’t matter if
we were, they could do it anyway.”
While
the decision to separate Stelpipe from Stelco and sell it would clarify the
situation for that group of active workers, it doesn’t solve the issues surrounding
retirees and the former employees of Welland Pipe or employees of the other
Stelco subsidiaries.
In
past interviews, union representatives have maintained that the Welland
Stelpipe operation can and should be saved.
“The
key is this is a very viable operation and we need to find ways to continue
providing jobs for our members and the municipality,” said Rick Alakas, a
Canadian Auto Workers (CAW) union representative from the plant. in a March
interview with the Tribune.
Fry
said the timing of the request will depend on how quickly the company is able
to develop its sale process and the court’s ability to hear it.
“The
timing of this is not something that’s totally within our control,” he said.
Stelco
is currently embroiled in a legal fight with the United Steelworkers over its
successful application for bankruptcy protection.
Justice
Farley, after hearing an appeal from the Steelworkers which asked the court to
overturn the protection, ruled in late March that the company is insolvent and
entitled to protection.
Fry
said the legal fight has had some impact on Stelpipe.
“To
the extent that it’s occupied the court’s time and attention, it has had an
impact,” said Fry. “Because the court has been dealing with that particular
issue, it has not been able to deal with others.”
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