The
Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator
for permission to post the following article by Reporter Peter Van Harten
published in the February 2, 2004 edition
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Feb. 2, 2004. 01:16 AM |
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'There is life after restructuring' |
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People who endured Algoma's reorganizations say
Hamilton will get through it |
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By Peter Van Harten |
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The choices to be made are brutal. Jobs versus wages versus pensions versus retiree benefits. But have hope. There is life after restructuring, say some of the survivors of the 2002 visit by "Mr. Fix-it" Hap Stephen to Algoma Steel in Sault Ste. Marie. The king of financial restructuring, Stephen is now in Hamilton at Stelco. Ian Kersley in the Soo says, "get ready for the pain because it's going to be a big blow. Don't underestimate it." He represents about 515 salaried supervisory workers at Algoma, most of whom were non-union but signed up with the Steelworkers after an earlier restructuring at Algoma in 1992. That salaried workforce is now down 800. To anyone with a stake in those Stelco jobs, pensions and benefits, his advice is "get your ass to the table" because that restructuring bargaining in 2002 was "scary." "We sat in a room with about 60 people and you could hear the meter running -- lawyers and accountants. And guess what, they don't care about people losing pensions." Each Algoma restructuring brought job losses, wage and pension cuts. The Algoma workforce is down 18 per cent since the most recent one. After the first restructuring during the Bob Rae NDP government, the United Steelworkers of America ended up a majority shareholder in Algoma. That majority ownership disappeared in the 2002 restructuring. "Those bondholders from New York are a ruthless group," said Tom Bonell, who was at that restructuring bargaining table to represent the 2,500 unionized hourly plant workers now left on the job. And more layoffs are expected. At one time, Algoma rivaled Stelco as a steel-making powerhouse but in the past 15 years its workforce has dropped from 12,000 to 3,000. Since the early 1990s, the Soo's population has declined from 85,000 to 75,000. Mayor John Rowswell said about 30 per cent of the city's economy is tied to Algoma and residents lived in "fear and worry" about job losses during the 2002 restructuring. The city figured its population would drop to about 50,000 if Algoma went under. Fortunately, the federal government came through with a $50 million loan guarantee and the province ensured pensions would not go below 1995 levels through its pension guarantee fund, he said. Government leadership and aid for the steel industry is essential, said Rowswell, an engineer. Tony Martin, MPP for Sault Ste. Marie during the Algoma restructurings, said money dried up and small business and steel plant suppliers felt the pain each time. He said Hamilton citizens should form committees and other mechanisms to support Stelco, the union, the city and the restructuring effort. "Small business needs to know that it is going to be difficult but if they hang in, there is light at the end of the tunnel," he said. "You will get through it but it won't be by a fairy godmother waving a magic wand. Everybody has to give up something." Don Mitchell, president of the Chamber of Commerce in the Soo, said there will be pain for Hamilton but Stelco has finally gone to the doctor about its financial ills. "There are remedies and there is life after restructuring," he said. "We took two dives in the Soo and a lot of businesses got hurt. It's been a roller coaster ride but we got through it and Hamilton will too." Mike Da Prat, the Steelworker local president for hourly workers, said "sacrifices" have to be made. But he won't discuss them because he doesn't want to undermine the position of Stelco workers in Hamilton. Bonell said Algoma held nothing back about its financial problems during bargaining "because there was nothing to hide. It was death." People stopped buying cars and eating in restaurants because of the uncertainty. And steel company suppliers can't count on getting 100 cents on the dollar they are owed, he and others said. But Bonell also said the union and company will get through it. "Both sides win and both sides lose, but if you can work together then everybody can be winners." pvanharten@thespec.com |