Advisory Committee Background:
We
are a group of volunteers who, first of all, hope that Stelco thrives and
prospers for many years. We are all long time employees, now retired, who are
Stelco supporters but who now find recent media reports disturbing. We have no
agenda other than to see salaried pension plan members treated fairly in
whatever the future holds.
The Problem:
We
are concerned about Stelco’s financial health, the state of funding of Stelco’s
various pension plans and reports about the need to reduce “legacy costs”
(pension and benefit costs) as part of the financial solution. To quote Fred
Telmer, President & CEO, in the Dec.1 Stelco Employee Update, “Ultimately,
all stakeholders will likely be affected in some way as Stelco reorganizes....”
Later in a Dec.22 message he said, “ The road ahead will be rough….” Tim
Huxley, V.P. Corporate Affairs, states “there are currently not sufficient
funds in the plans to meet all obligations if they were called upon to do so
immediately.” Possible scenarios could
include unilateral adjustments to the plan and/or the possibility Stelco could
enter CCAA (Companies’ Creditors Arrangement Act)
proceedings or perhaps a takeover of some sort. We are concerned that if Stelco ceases to be an ongoing entity
the fate of salaried pension plan members could be out of our collective hands
or, even out of Stelco’s hands. The recent Stelco ‘update’ letters to employees
and pensioners are a welcome communication but they leave many questions
unanswered.
The comments made by
Fred Telmer and Tim Huxley appear to support the view of our retained legal
counsel, Koskie Minsky and many others that Stelco will take action sooner than
later to reduce its liability to pensioners. Therefore, it is our contention
that there is a high degree of urgency to be organized and prepared to protect
our pension and benefit plans.
Our mission is to protect the
basic pension and benefit plans for Stelco salaried pensioners.
Salaried
retirees from various works in Ontario.
Works Plan
Number
Stelco Inc. (HW/ST) 338509
Stelco Inc. (LESC) 698753
Stelwire Ltd. 697292
Stelpipe Ltd. 1017177
Welland Pipe Ltd. 1017185
CHT Ltd.
532796*
NOTE: While we would not try to defend the pension and benefits interests of current/active employees, we expect that our efforts will be of value to those close to retirement. (*revised 04/02/10)
Endorsement of the Advisory
Committee:
At present we are an
“Interim Advisory Committee” without a mandate to act on your behalf. A group must be formed to represent all of
us. We are willing to carry on if that
is your wish and to that end we propose a voting procedure to legitimize us as
your representatives as we go forward. This procedure will be on the website
shortly. We are asking for your
endorsement of the Committee and for the authority to carry out the following
mandate:
·
maximize the number
of organization members
·
initiate legal action
if necessary
·
raise funds to cover
expenses
·
communicate with our
pensioners’ organization, Stelco, the media, government and elected
representatives
·
collect information
to better understand our options.
Membership:
There is strength in
numbers. In the event of CCAA
proceedings pensioners will be treated as unsecured creditors with respect to
that portion of our pension that is underfunded. Legal counsel has advised us that a key factor in a judge’s
decision to allow our representation at CCAA hearings is the size of this
Salaried Pension Organization. Therefore, we urge you to encourage others to
join. Currently we have over 775
members and our goal is to double that.
A larger membership will reduce the cost per member for any legal fees
or other specific expenses.
Funding:
We
need funding now! So far our expenses
have been low but if legal action becomes necessary, e.g. if CCAA is invoked,
we will need funding to be already in place.
Therefore, a notice of a $50 assessment per member will be included in
the voting procedure. In the event of
legal action, additional assessments will be required. Strict accounting will be maintained and
unused funds will be returned to members.
It must be stressed that this process
will not go forward without successful fundraising.
A further update will
be issued soon that contains the details of the voting procedure and membership
fees. Updated information regarding Stelco will be issued as it becomes
available.
The present committee
members are:
Name Position
at Retirement
Gary A. Beaudoin Manager, Metallurgy, R&D, QA - HW
R&B
Gary Dallin Manager,
Metallurgy & QA, HW Rolling & Finishing
Bob Faitz Process Metallurgist, HW
Plate Mill
Rick Grigg Coordinator – R&D, HW
George Hanson Metallurgist HW Plate Mill
John Hanson General Foreman Utilities HW Eng.
& Operating Services
Richard Harris Superintendent Stores, HW
Klaus Heyer Senior Technical Advisor, HW
R&D
John Hood Research Manager, HW Cold
Roll & Coated
Murray McDiarmid Analyst, Salary & Benefits, HW
Ron Price Plant Accountant, HW
Gordon Thede Assistant Manager, HW Engineering
Paul Wendling Project Manager, HW Plate &
Strip Division
Dennis Wright General Foreman Utilities, LESC
Operating Services
2/10/04