|
Stelco, already mired in toxic labour relations, may soon find itself
in a showdown with its union over which bidder will wind up owning the
company.
Today is the deadline for potential bidders to announce their interest
to Stelco.
"In order for any bidder to get an agreement to come and purchase
this, they're going to need the support of the workforce," United
Steelworker national director Ken Neumann says.
Janis Sarra, an expert and author on insolvency law, says Stelco's
union is playing a more active role in the steelmaker's bankruptcy
protection process than in any other case she can think of.
This spring, Stelco CEO Courtney Pratt described the relationship
between Stelco and the Steelworkers as one of "toxic mistrust."
That doesn't appear to have changed.
Bill Ferguson, president of the Lake Erie local, said the union is
taking on the task of looking for bidders because it doesn't trust that
the company will choose the best offer.
"We have an opportunity to do what's right for the community, the
pensioners and the workers. Why hasn't Stelco done it?" he said.
Neumann said "we think that there are some potential buyers out
there who are truly interested in the same vision we have, and making
this a company that looks towards the future."
Neumann said Stelco was "dead wrong" to accept a $900
million refinancing deal from Deutsche Bank. "It's not about just
giving the bondholders or the bankers a whole lot of money. It's about
looking after the human element and cities like Hamilton," he said.
The Deutsche Bank deal was accepted as a minimum bid that set a floor
for further offers to top. It did not ask workers or pensioners for any
concessions.
Sarra, assistant dean of the faculty of law at the University of British
Columbia, said "the fact that the union has become really active in
trying to better the overall balance and maximize the value of (the
restructuring plan) is ultimately a benefit for all stakeholders. The
more robust the process is, the better result we're going to get for
Hamilton, for the Steelworkers, and the creditors, and everybody
else."
She said the Steelworkers hold more power in Stelco's case than
union's generally do under bankruptcy law.
"One of the big issues here is that all the bidders appear to
recognize how fundamental it is to have a good relationship with the
union," she said.
Because the Lake Erie plant is key to Stelco's operations, and its
collective agreement is outstanding, a purchaser will have to close a
contract with the union before they can move forward, Sarra said.
Denis Turcotte, president and CEO of Algoma Steel, has met union
representatives, including Ferguson.
"My impression is that these are a bunch of guys that talk
straight, that aren't reluctant to talk about critical issues, and want
to be part of a strong and winning organization."
tperkins@thespec.com
905-526-4620
With files from Fred Vallance-Jones
|