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 April
23, 2004 edition
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Apr. 23, 2004. 01:23 AM |
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'The Straight Goods' |
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Stelco CEO acknowledges deep mistrust: 'It's
critical our employees believe what we say.' |
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By Tara Perkins |
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Stelco's chief executive Courtney Pratt says reducing the company's workforce is a priority. And the steelmaker's restructuring is about a month behind schedule as executives work to overcome a legacy of mistrust, Pratt told the media yesterday following a speech to the Empire Club of Canada in a Toronto hotel. With Mayor Larry Di Ianni by his side at the head table, Pratt said Stelco will need help from the government. It's too early to ask for anything specific, but pension help, loan guarantees, and worker training are all possible requests, he said. Pratt's speech dealt with "the atmosphere of mistrust that has developed over the years between Stelco management and its employees." "It's critical that our employees believe what we say," Pratt said. "They may not like what we say, but they (must) believe what we say, that it represents the truth, as the basis for moving forward." But a union president said it's too late for that. "I don't think trust will ever happen," Rolf Gerstenberger, president of United Steelworkers of America local 1005, said yesterday from a steelworkers convention in Vancouver. He said Pratt lost the union's trust early. Pratt, who officially took the helm at Stelco on Jan. 1, held a friendly meeting with the union presidents in December. A month later, the company filed for bankruptcy protection with no notice to the union, Gerstenberger said. The mistrust the company has built up over the years goes beyond employees to the community at large, and includes the salaried workers, Pratt said. "The mistrust has first of all surprised me, the degree to which that mistrust is there, and how strong it is... (It has) put a tremendous emphasis on communication ... trying to explain to employees and the community -- because there's a lot of mistrust in the community -- that our problem is real, that we're delivering the straight goods, that we want to work with all the constituents to solve the problem." On Monday, Stelco officials will give a presentation to the presidents of the three USWA locals to outline why the company believes it is in financial distress, said Stelco spokesperson Tim Huxley. The local presidents will see an edited version of the presentation because they have not signed confidentiality agreements. Other groups involved in the restructuring, such as the salaried workers, received more financial details because they promised not to share the information. Asked if his own compensation was on the line in restructuring, Pratt replied "I think some of it will be." Pratt said he has "no pension arrangements at all." Di Ianni said he was pleased by what he heard in Pratt's speech. The mayor said he was happy to hear that pensioners will be a priority and that Stelco is expected to be a strong company at the end of the day. "There's a huge amount at stake for our community," he said. Stelco Chief Restructuring Officer Hap Stephen said the steelmaker has completed a study suggesting that if the company went under, $1.9 billion in wages would be lost along with $1.1 billion in tax revenues to the three levels of government. About 24,500 jobs would also be at risk. Pratt suggested yesterday that bargaining with Local 8782 will not follow the usual process. Local president Bill Ferguson has told the company he would like to begin contract talks for 1,000 workers at Lake Erie Works. "It's very difficult to think of traditional bargaining under a contract in the normal timeframe when we're involved in the CCAA process," Pratt said when asked about the upcoming talks. From Vancouver, Ferguson said "we really don't know what he has planned, but I do know I have a collective agreement that's about to expire July 31." tperkins@thespec.com 905-526-4620 |