The Stel Salaried Pensioners Organization wishes to thank the Welland Tribune for permission to post the following article by Reporter Mark Tayti, published in the April 22, 2004 edition

"Trying to protect worker's pensions"

By MARK TAYTI, Tribune Staff

WELLAND TRIBUNE, April 22, 2004

City Council supported a resolution Tuesday aimed at protecting workers' pensions that could be affected by the melt-down in Canada's steel industry. The resolution got unanimous support in a municipality that has seen two steel plants close their doors in the last year.

The resolution was presented by Canadian Auto Workers Local 523 delegates out of concern for members and retirees it represents at Stelpipe as well as its retirees at Welland Pipe -- which closed permanently last summer.

Gord Chatwin, president of CAW Local 523, said the resolution calls on the government to bolster the Ontario Pension Benefits Guarantee Fund (PBGF) -- a fund that 'tops up' pension benefits when companies cannot fulfil their pension obligations. Chatwin said the "emergency resolution" was supported by 1,000 delegates at a membership meeting held in Port Elgin last weekend.

Stelpipe -- a subsidiary of Stelco -- is caught up in the parent company's court-administrated restructuring, which began earlier this year when Stelco filed for protection from its creditors under the Companies Creditors Arrangement Act (CCAA).

At that point, there was a $23-million shortfall in the pension fund -- which only guarantees a payout to workers of 81 per cent should the company become insolvent, Bob McCallion, chief steward at Stelpipe, told council.

Rick Alakas, CAW Local 523 union representative, said the gap in the Ontario Pension Guarantee Fund could impact the livelihood of 2,500 workers and retirees in the city's steel industry.

"You work all your life in the hope you can retire with a little dignity," Alakas said. "Your pension should not be something that is at risk."

The three union delegates also presented the city with a letter from CAW National president Buzz Hargrove.

"On behalf of the 265,000 CAW Canada members, I urge you to support our union's fight to fully protect pension plan benefits in the province of Ontario," Hargrove stated. "Improvements to the PBGF are urgently required, due in part, to the crisis in Ontario's steel industry as more major corporations seek creditor protection in bankruptcy court.

"After a lifetime of service to a corporation with the promise of a monthly pension as compensation for deferred wages, the prospect of forcing retirees into losing their independence and dignity through a cut in monthly pension payments is an absolute disgrace."

Coun. Sandy O'Dell suggested the resolution be forwarded to the Association of Municipalities of Ontario (AMO) for support. O'Dell said the current situation has the potential to create hardship for many people in Welland. He said pension clawbacks will also take disposable income that would have been spent in the community.

"This is the type of legislation that needs to pass," he said. "Clawing back pensions is wrong."

The city also intends to forward the resolution to Niagara¹s 12 municipal councils for support.

CAW Local 523 plans to make a similar presentation at regional headquarters in the near future.

The resolution calls on the province to amend the financing provisions of the Ontario Pension Benefit Guarantee Fund to ensure sufficient funds are available to provide for complete protection of all accrued pension benefits.

The resolution warns of "serious impacts" on the pensions and benefits of active and retired employees in the event of a "wind-up"of pension plans at steel plants across Ontario, and more specifically, Stelco, Stelpipe, Welland Pipe and Slater Steel.