The government of Ontario and Bedrock Industries Group (Bedrock)
today announced that they have signed a Memorandum of Understanding (MOU) to
facilitate the restructuring of U. S. Steel Canada Inc. (USSC), which remains in
court-supervised creditor protection proceedings under the Companies’ Creditors
Arrangement Act (CCAA). The MOU is an important step toward the completion of a
restructuring intended to protect jobs, the ongoing operations at USSC’s
Hamilton and Lake Erie facilities, pensions and post-employment benefits for
active and retired USSC employees. In reaching this MOU, the Province has worked
closely with the court-appointed monitor and kept other stakeholders informed
throughout the process.
The terms of the MOU remain confidential until they can be
released pursuant to a court process. For its part, Ontario has agreed to a
framework to support an acquisition proposal from Bedrock intended to protect
pensions and assist in providing post-employment benefits. The province has also
agreed to support the development of industrial lands on behalf of pensioners in
an effort to promote the economic development of the Hamilton region while
ensuring that the environment continues to be protected. In taking these
actions, the province seeks to facilitate economic progress while minimizing
financial risk for the public treasury.
Bedrock’s principals have a long track record of owning and
successfully operating businesses in the metals, mining and manufacturing and
distribution sectors worldwide including in Canada. Bedrock has been committed
to working with all stakeholders, including organized labour, salaried workers,
government and the affected communities, in order to provide well-paying
long-term jobs and benefits as well as pursuing continuous improvement and
ongoing financial strength
The MOU and the contemplated restructuring remain subject to many conditions,
including acceptance by USSC, ratified collective bargaining agreements with
United Steelworkers Union Locals, agreements with certain stakeholders,
government approvals and the approval of the Court supervising USSC’s CCAA
proceeding.
QUOTES
“We have been working with the company and
other affected parties through the CCAA process to support the best possible
outcome for employees, pension members and other stakeholders under these
challenging circumstances. This MOU helps us to move forward on the Province’s
priorities such as preserving jobs, protecting pensions and the environment
while developing the industrial lands. We are hopeful that this will clear the
way for a restructuring process that results in a viable, healthy company that
supports continued operations in Ontario and in local economies.”
— Charles Sousa, Minister of Finance
“The MOU is an important milestone in our
efforts to restructure the former Stelco operations of USSC. We look forward to
continuing to pursue the completion of these efforts with all relevant
stakeholders.”
— David Cheney, Bedrock Industries
|
FOR MEDIA INQUIRIES
ONLY:
Kelsey
Ingram, Minister’s Office, 416-326-1409
Scott
Blodgett, Ministry of Finance, 416-325-0324
|
ontario.ca/finance
Disponible en français |
Steelworkers Encouraged by Framework Agreement on U.S. Steel Canada Purchase
HAMILTON, 21
September 2016 – The United Steelworkers (USW) welcomes today’s announcement of
a framework agreement between the Ontario government and
Bedrock Industries, LP
for the purchase and continued operation of U.S. Steel Canada facilities in
Hamilton and Nanticoke.
“We are
encouraged by many aspects of the agreement announced today between the Ontario
government and
Bedrock Industries,” said
Marty
Warren, USW Ontario Director.
“We have
been briefed on the agreement and we acknowledge that the province and Bedrock
have made an effort to address many of our concerns about protecting the
interests of our members and retirees,” Warren said.
“It has been a
stressful and painful two years for our members and pensioners,” Warren added,
referring to the fact U.S. Steel Canada has been operating under Companies'
Creditors Arrangement Act (CCAA) protection since September 2014.
The agreement
announced today contemplates that Bedrock,
an
industrial company building its production platform in metals,
will purchase and continue operating U.S. Steel Canada’s plants in Hamilton and
Nanticoke.
“We have
been in discussions for quite some time with the province and various potential
buyers about a restructuring of U.S. Steel Canada that would be good for our
members and our retirees,” Warren said.
“The deal
announced today is far from perfect, given the challenges that arise from such a
lengthy and complex insolvency process,” he said. “However, after two years in
CCAA protection and after numerous discussions with other bidders, we believe
this could lead to a good final deal for the Union’s members and retirees ”
Among the
challenges to be resolved, Bedrock must complete negotiations for new collective
agreements with Steelworkers Local 1005 in Hamilton and USW Local 8782 in
Nanticoke, noted Tony DePaulo, Assistant to the USW Ontario Director.
Subject to
completing negotiations for new collective agreements and resolving other
details related to the transaction, we believe this agreement offers a positive
step forward,” DePaulo said. Details of the framework agreement have been shared
with leaders of both USW locals, DePaulo said.
“Subject to
finalizing this complex deal to the union’s satisfaction, this transaction
appears to be the best available way to secure jobs for our members and offer as
much protection to our retirees as possible,” he said.
The USW
recognizes the Ontario government’s efforts to find a resolution to the
U.S. Steel Canada
insolvency,
Warren said.
However, the
union is calling out the
federal Liberal
government for failing to take any meaningful action to address the steel crisis
in Canada or to provide any support to workers and pensioners affected by the
crisis.
“The federal
government has not been engaged and has not offered any material support –
neither in this case nor to help other communities across the country hurting
from the steel crisis,” Warren said.
“Essar Steel
Algoma in Sault Ste. Marie is operating under CCAA protection and other
steelmakers have cut jobs and production, but our federal government is missing
in action,” he said.
“Thousands
of pensioners and working families are desperate for real support from the
federal government. So far, they’re being ignored.”
###
For further
information:
Marty
Warren, USW Ontario Director, 416-243-8792,
Tony DePaulo,
Assistant to the USW Ontario Director, 416-243-8792, 905-869-0760,
tdepaulo@usw.ca
Bob
Gallagher, USW Communications, 416-544-5966, 416-434 2221,
bgallagher@usw.ca
August 29, 2016
Annual Lump Sum Payment
Anyone that previously submitted forms last year to have their
Annual Lump Sum payment deposited into their District 6 Savings account does not
need to fill out another deduction form unless you want to make changes.
The cut off date for the forms to be submitted is September 9,
2016.
Payment will be made on September 23, 2016
August 28, 2016
The Womens Committee page has been added.
Liberals Abandon
U.S. Steel Pensioners, Workers
HAMILTON, 22 August 2016 – The
federal Liberal government’s “deafening silence” is sending a resounding message
to 20,000 U.S. Steel Canada retirees suffering from the elimination of their
crucial health benefits, the United Steelworkers (USW) says.
“Steel industry workers and
pensioners were hoping for change when the Trudeau Liberals replaced the Harper
Conservatives,” said USW Ontario Director Marty Warren.
“As workers and pensioners suffer
blow after blow, the deafening silence from the Liberals shows there is no real
change. The Liberals continue where the Conservatives left off, leaving
pensioners and workers on their own. It’s business as usual,” Warren said.
“Like the Conservatives before them,
the Trudeau Liberals have failed U.S. Steel workers and pensioners. They’ve
failed to support jobs, pensions and benefits, failed to expose the secret deals
and failed to reform Canada’s antiquated and damaging corporate bankruptcy
laws,” he said.
More than 20,000 U.S.
Steel Canada pensioners suffered another brutal blow with Friday’s Superior
Court ruling that denied a motion to reinstate the pensioners’ drug, dental,
vision and other health benefits. The pensioners’ benefits were suspended last
fall, when the same court, overseeing U.S. Steel Canada’s bankruptcy protection
case, granted a request by the company.
In addition to
rejecting the reinstatement of pensioners’ health benefits, the judge in the
case agreed to the company’s request to pay a special bonus to managers – the
second such bonus awarded to management during the restructuring process.
“Our members, our
pensioners and people throughout our community are outraged to see benefits that
categorically belong to retirees simply taken away with the stroke of a pen,
while managers receive bonuses,” said Gary Howe, President of USW Local 1005,
representing U.S. Steel Canada employees in Hamilton.
"Just
about everybody sees this for what it is – the theft of pensioners’ benefits.
Everybody except our courts and our government, who don’t seem to care,” Howe
said.
“Giving
more bonuses to management at a time when our pensioners are still going without
benefits, it’s ridiculous that this is still happening,” said Bill Ferguson,
President of USW Local 8782, representing U.S. Steel Canada employees in
Nanticoke.
“Our
pensioners shouldn’t be forced to live off emergency government funds while
managers give each other raises and bonuses,” Ferguson said.
In its
motion to the court seeking reinstatement of pensioners’ benefits, the USW noted
U.S. Steel Canada, while operating under the
Companies'
Creditor Arrangement Act (CCAA), has a positive cash flow of $150 million.
Furthermore, documents that were inadvertently made public have revealed that
U.S.
Steel Canada has paid
its American parent, U.S. Steel, $123 million above market prices for
steelmaking supplies such as coal and iron ore.
Restoring the
pensioners’ benefits, meanwhile, would cost $3.5 million per month.
“This sums up the
disgrace of the CCAA process and the federal government’s silence in this
scandal,” said
Tony
DePaulo, Assistant to the USW Ontario Director, who submitted affidavits to the
court revealing the suffering of pensioners who have lost their benefits.
“It’s a
process that allows a corporation to take away retirees’ benefits while it sits
on $150 million in cash and overpays its parent company another $123 million for
supplies,” DePaulo said.
“Not
only is the Trudeau government’s silence deafening, it’s hurting thousands of
workers and pensioners.”
###
For further information:
Tony DePaulo,
Assistant to the USW Ontario Director, 905-869-0760,
tdepaulo@usw.ca
Gary Howe, President, USW Local 1005, 905-531-4078,
gary.howe@uswa1005.ca
Bill Ferguson, President, USW Local 8782, 905-537-8782,
president@uswa8782.com
Bob
Gallagher, USW Communications,
416-544-5966,
416-434-2221,
bgallagher@usw.ca
July 19, 2016
The government has announced the additional funding
for the Transition Fund. It will be sending out the update to
retirees that you reviewed a couple of months ago.
The following is the final statement that was shared:
Statement from Hon. Charles Sousa
On January 1, 2016 the provincial government
implemented a $3 million Transition Fund to support retirees and
beneficiaries impacted by USSC’s suspension of post-employment
health benefits. The Fund is helping to address the urgent health
needs of retirees while USSC’s Companies’ Creditors Arrangement Act
(CCAA) proceedings continue.
The Transition Fund provides coverage for
prescription drugs, along with urgently required dental and other
health services. The Fund is intended to help retirees and their
families transition to other supports and programs available such as
the Trillium Drug Program.
To further support the critical health needs of USSC
retirees throughout the CCAA proceedings, the government is
providing an additional $2.65 million to the fund. Costs to
administer the program will continue to be covered by the Ontario
government separately.
The government has worked closely with
representatives of the union and salaried retirees, USSC, the
Court-appointed Monitor, and Green Shield to manage the day-to-day
operations of the Transition Fund. The collaborative work with these
partners has helped to ensure that the needs of USSC retirees
continue to be addressed throughout the CCAA legal proceedings.
This Transition Fund extension is subject to the
approval of the court. A letter will also be sent to retirees to
notify them of additional funding support available through the
Transition Fund.
Our government remains committed to working with all
stakeholders in the restructuring process to achieve the best
possible outcome for employees, pensioners, suppliers, customers and
the long-term viability of the Canadian operations.
July 18, 2016
CCAA Restructuring
As you are all aware, the restructuring is ongoing. The
Senior Level Committee is and has been attending meetings with bidders and other
stakeholders in an effort to reach a successful restructuring agreement.
When there is something concrete to report back to the members
we will arrange meetings accordingly. The process in ongoing and fluid.
Don't listen to rumours and don't assume the press is always factual when
reporting. There is a sensitivity to the restructuring process and what we
can report is, we are working hard on your behalf in an effort to reach a
successful outcome for the business, the employees and retirees.
Transition Fund Update for Retirees
What’s
new with the Transition Fund?
Availability of the Transition Fund after March 31, 2016
The
Transition Fund has not yet run out, and funding for coverage is still available
for prescription drug benefits, and dental and other health benefits. The fund
will continue until it reaches the $3 million cap. Up to $2.5 million is
available for prescription drug benefits coverage (Tranche 1) and up to $500,000
is available for emergency coverage for urgently required dental and other
health benefits (Tranche 2). Once the Transition Fund is exhausted under either
Tranche 1 or 2, no claims will be processed under that tranche.
Changes
to prescription drug eligibility
As of
March 14, 2016, the parameters of the fund were expanded and began providing
coverage for repeat refills of 30-day prescription drugs.
Once you
have claimed 30 days’ worth of prescriptions you will have to wait a period of
time before processing your next refill. The next claim will be allowed when the
beneficiary is 80 per cent of the way through their current prescription (e.g.,
day 24 of a 30-day claim). The 30-day repeat refills will continue until the
fund runs out.
Claims
for more than a 30-day supply will be rejected (e.g., if you claim for 90 days
of prescriptions, the claim will be rejected. The pharmacy will have to resubmit
for a 30-day supply and you will have to return once the wait period is done.)
Retroactive payments for 30-day repeat refills purchased before March 14, 2016
will not be issued.
The other
provisions of the Transition Fund (e.g. the dental and other benefits) remain
the same.
Background
On
September 16, 2014, US Steel Canada (USSC) filed for protection under the
Companies’ Creditors Arrangement Act (CCAA)
As the
result of the Court’s decision on October 9, 2015 regarding USSC’s cash
conservation and business preservation plan, prescription drug and other health
benefits (“OPEBS”) were suspended for eligible USSC retirees and their eligible
spouses and dependents (“OPEB Beneficiaries”). Life insurance coverage was not
suspended.
Following
the Court decision, the Ontario government committed to establishing a $3
million Transition Fund to help support retirees and beneficiaries impacted by
the suspension of their OPEBs. The Transition Fund is not a continuation of the
USSC OPEBs but is meant to address urgent and critical health needs of affected
retirees as they transition to other supports and programs available such as the
Trillium Drug Program.
In
December 2015, a Transition Fund letter was distributed to OPEB Beneficiaries,
outlining how the Transition Fund would be used, and how to apply for coverage
from the fund. The fund has been operational since January 1, 2016.
Further Information on
the Transition Fund
The December 2015 Transition Fund letter, as well as details about the fund’s
parameters and process for submitting claims are available through the websites
of the representatives of the union and salaried retirees, and the Monitor, as
follows:
·
Ernst &
Young -
www.ey.com/ca/ussc
·
USW
Local 1005 –
www.uswa1005.ca
·
USW
Local 8782 -
www.uswa8782.com
·
Koskie
Minsky LLP –
www.kmlaw.ca/cases/usscrepcounsel/
·
Stel
Salaried Pensioners Organization -
www.stel-salaried-pensioners.org
If you do
not have access to the internet, please refer to the following contacts provided
for your convenience:
Non-USW
Members:
Koskie Minsky LLP at their toll-free phone number at 1-866-777-6341.
Local
1005:
Tony
McLaughlin Ron Wells
(905)547-1417 ext. 4 (905)547-1417
ext. 3
tony.mclaughlin@uswa1005.ca
ron.wells@uswal005.ca
Local
8782:
Terry
Barnard Mark Talbot
519-587-2000 ext. 225 519-587-2000
ext. 301
wsib@uswa8782.com
vp@uswa8782.com
Greenshield Canada call centre at their toll-free phone number at
1-888-711-1119.
Is Ontario Steel Too Big to Fail?
About this Video:
When Bombardier fell
on hard times in Quebec, the
province offered a billion-dollar
bailout. The argument: Bombardier is
too important to Quebec to fail. The
Agenda examines whether the same is
true for Ontario's legacy steel
industry.
Disrupting Legacy
Industries
http://tvo.org/video/programs/the-agenda-with-steve-paikin/is-ontario-steel-too-big-to-fail
March 15, 2016
Ways and Means Golf Tournament Saturday August 6, 2016.
For more information
Click
Here
March 14, 2016
Transition Fund Update
As of March 14, 2016, the Transition Fund will cover repeats of 30-days
supplies of prescription drugs until March 31, 2017, or until the fund runs
out.
This means that once you have claimed 30 days' worth of prescriptions you
will have to wait a period of time before processing the next prescription.
The next claim will be allowed when a plan member is 80 per cent of the way
through their current claim (e.g., day 24 of a 30-day claim) and this will
continue until March 31, 2017 or until the funds runs out.
Claims for more than a 30-day supply will be rejected. (E.g., if you claim
for 90 days of prescriptions, the claim will be rejected. The pharmacy will
have to resubmit for a 30-day supply and you will have to return once the
wait period is done.)
The other provisions of the Transition Fund remain the same.
Transition Fund
Update
As we are sure,
everyone is aware by now that the Judge presiding over the CCAA restructuring
granted the Company a request for a business preservation plan as the Canadian
Operations transitions into a stand alone business. The order allowed the
Company to suspend retiree benefits, suspend payments of past service for the
pensions and to not have to pay their Municipal taxes. The Union put forth that
there were other cash conservation measures that could have been taken within
the operations before taking these drastic steps.
There is still a
substantial amount of dollars remaining in the Transition fund, so we continue
to ask that 30-day supplies of prescriptions be given each month for those that
require them until the fund expires on March 31 or the fund money runs out.
Emergency hardship
(Tranche 2) is still available on an individual basis. We have proposed
reviewing the criteria for accessing the emergency fund. We can assist you at the
Union Hall in the process or you can send it in directly to the monitor. Forms
are available to print off on our website.
We understand your
frustration in this difficult time and understand that you earned your benefits
by deferring your wages. Our position is to have our Benefits reinstated at some
time in the future. We anticipate that we will have more information next week.
February 2, 2016
Benefit Transition Fund
The prescription drug portion of the transition fund that was
funded by the government and administered by Greenshield and the monitor, was for there to be a
one time 30 day maximum supply for a prescription. We have asked that this
policy be reviewed with a view to provide for 30 days at a time for each
prescription until the fund either runs out or until the end of March when the
transition fund is scheduled to end.
We hope to know in the coming weeks whether it will get approval. If
you require filling a prescription again prior to the decision maybe the
pharmacy will give a few days worth until the decision is made. We have
also requested that if people have already filled this months prescription, that
there be a avenue for reimbursement.
December 23, 2015
Transition Fund Update
The Court approved the Retiree Benefit Transition Fund motion
and signed the order today, so the fund will come into effect January 1.
For more information see the documents listed below. The retirees will
receive a mail out to inform them as well.
To view the Transition Fund Order that was approved click here
December 18, 2015
Government $3 Million Transition Fund for Retirees
Here are the Letters, Guidelines and Required Documents for
the Transition Fund that has been announced for retirees. Please keep in
mind that these are subject to the courts approval on December 23, 2015
Transition Fund Letter Click here
Transition Fund Memorandum Click here
Transition Fund Tranche 2 Application Form Click here
Greenshield Dental Claims Form Click here
Greenshield General Health Claim Form Click here
September 3, 2015
For people wanting to view copies of Court Documents
including the Monitors report which relate to the CCAA proceeding you can access them on
the Court appointed Monitors website
http://www.ey.com/ca/ussc.
Grievance Form Package
Here is a package to assist the steward body on the grievance
procedure and process. To view the guideline click on the link below
Grievance Kit
Family Services Employee Assistance Program
The intent of the program is to assist troubled employees in
arranging for appropriate private outside resources. If you have questions on
the extent of assistance or require help please don't hesitate to call
1-800-668-9920 or for more information go to the website at
http://www.myfseap.com/english/myeap/home.asp and login, user name is ussc
and password is steel.
