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03/07/11

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Secondary School Scholarships 2011

 The Education Fund of the United Steelworkers is offering 21 scholarships in the amount of $1,000.00 to qualified secondary school students across Canada, to be distributed as follows:

District 3: 5 Scholarships (Western Provinces)              
District 5: 6 Scholarships (Québec)
District 6: 2 Scholarships (Atlantic Region)
District 6: 6 Scholarships (Ontario)
National: 2 Scholarships

Application forms for these scholarships and related criteria can be downloaded from the Steelworkers web site, click on the link below.

http://www.usw.ca/workplace/education/scholarships


The conditions of these scholarships are:

(1) The scholarships shall be awarded to members, or sons and daughters of members, of the United Steelworkers.

(2) Recipients of scholarships must be prepared to show their level of education is sufficient to allow admittance to an approved institution of higher education, such as university, technological institute, nursing school, etc. People who have already completed some post-secondary studies are NOT eligible for this award.

(3) The student must complete an application form which may be obtained from the office of the District Director or from the Regional Representative of the United Steelworkers in the community.

(4) The application form, to be submitted no later than JUNE 30TH, 2010, must be accompanied by an original essay in either French or English of approximately 1,000 words dealing with one of the following topics:

a) Is there a role for unions today? Your essay should examine what role unions play in today’s economy, and what kind of difference being a member of a union can make. You might want to interview your mother or father about the history of the Steelworkers in their workplace and what difference the Union has made in their lives. What areas or issues could the Union better address in the workplaces of today? How can the union build support of members and their families?

b)
Organizing locally and globally: As corporations merge and grow, unions too are seeking out partners and entering into strategic alliances. Discuss in your essay how these global alliances can help workers better address the challenges of, for example, poverty, the spread of AIDS/HIV, or climate change. Pick one of these areas to explore in your paper.

c)
Your vote is your say: If democracy is so important to us, why aren’t more people voting in elections? Discuss in your paper why politics and participation in political action is important to our democratic society. What do you think Steelworkers and others can do to help encourage young people to become politically active? What could the Union do differently or better?


(5) Essays must be typed and double-spaced on 8-1/2" x 11" paper.

(6) The selection and judging will be done in each District by a committee consisting of a representative of the District Director, a judge from outside the labour movement and the Education Department of the United Steelworkers in Canada.
*Please note that any evidence of plagiarism will result in disqualification. Proper citation and accreditation is expected.

(7) Proof of acceptance at an institution of higher education will be requested before an award is made.

The awarding of scholarships in each District will be based on the following principles:

1.       the academic record and all-around achievement of the student, attested to by the school principal; (Attach transcript and letter of recommendation from your teacher or principal to the application form).

2.       the 1,000-word essay; and

3.        Proof of acceptance in an institution of higher education.

 application form

 

Joe Crugnale Secondary School Scholarships 2010         

 

USW Local 5328 is offering 2 scholarships of $500.00 each to secondary school students based on the following conditions:

 

1)       The scholarships shall be awarded to sons and daughters of members, of Local 5328

2)      Recipients of scholarships must be prepared to show their level of education is sufficient to allow admittance to an approved institution of higher education, such as university, technological institute, nursing school, etc.

3)      The student must complete the application form which may be obtained from the President at his office or from a member of the education Committee.

4)  The application form, to be submitted no later than August 18, 2009 must be accompanied by an original essay of approximately 1,000 words dealing with one of the following topics:

 

  1. Is there a role for unions today?  Your essay should examine what role unions play in today’s economy, and what kind of difference being a member of a union can make. You might want to interview your mother or father about the history of the Steelworkers in their workplace and what difference the Union has made in their lives. What areas or issues could the Union better address in workplaces of today?

 

  1. Organizing locally and globally: As corporations merge and grow, unions too are seeking out partners and entering into strategic alliances. Discuss in your essay how these global alliances can help workers better address the challenges of, for example poverty, the spread of AIDS/HIV, or climate change. Pick one of these areas to explore in your paper.

 

  1. Your vote is your say:  If democracy is so important to us, why aren’t more people voting in elections? Why are voters cynical? Discuss in your paper why politics and participation in political action is important to our democratic society. What do you think the Steelworkers are doing to help encourage political activism? What could the Union do differently or better

5)      Essays must be typed, double spaced, on 8-1/2” x 11 paper.

6)      The selection and judging will be done by a committee consisting of a representative of the District Director, and the Education Committee of Local 5328.

7)      Proof of acceptance at an institution of higher education will be requested before an award is made.

 

APPLICATION FORM – JOE CRUGNALE SECONDARY  SCHOOL SCHOLARSHIP 2010

Name: ______________________________________________

Date of Birth: ___________________

Address: (full) ________________________________________________________

                        ___________________________

Phone No. ______________________________

 

Name of parent or Guardian: ________________________________

 

School Attending: _____________________________ Grade ___________________

Record:                         % or standing                                       % or standing

                                      Grade __________                               Grade ___________

                                      Grade __________                               Grade ___________

Plans for further education (use separate sheet if necessary)

                                                                                                                                  

 

Application to be returned, with the 1,000 word essay no later than August 18, 2010 to:

Joe Crugnale Scholarship – 2010

USW Local 5328

1031 Barton Street East

Hamilton, ON L8L 3E3

 

Date Submitted:                             Signature of Applicant

 

 

 

 

 

The Local News August 2007

Presidents Notes: Scott Duvall

We have been well into a year and a half now with Mittal. Many changes have occurred to date with the furnace operations now in effect, attrition through retirement, the closure of Walker Wire and the business load coming to Hamilton Works. Although I am happy with some changes and modifications to date, I still feel more can be done in a faster way of making a plan that would be of benefit to production, cleaning and a less frustrated way of working.

 

The Union has approached the company and expressed your concerns on many occasions only to be told we are working on a plan. We all know we have a material flow problem and we are continually being told of excuses of why we are jammed up and things will be worked on and get better. Well we are still waiting. The Union has been told, many areas are doing well with the exception of Wire Drawing. The company needs to see more production on assigned machines. The Union expresses many concerns of downtime for various reasons such as material shop worn, no soap, coils to big, recleans etc. and the company responds with employees taking to long lunch and coffee breaks, not starting machine on time and leaving early. The solution I believe here is to stop harping on each other and work together and talk to the employees affected to resolve the unnecessary wrongdoings. We have asked for over ten months for this to happen and have meetings with employees. To date this has not happen. All we do is react when the problem arises and avoid planning for long term solutions.

All employees have taken the extra step to try and make our company more competitive and prosperous, but we should not allow having to leave or making an area with safety concerns. I have witnessed many times of coils being leaned up against machinery, guards, empty totes, empty carriers and even nothing to support at either end. Some coils are double decked. This has left an unsafe condition for many, when people are looking for coils they could fall onto somebody and severely hurting them. This has brought the Ministry of Labour to be called in and install orders of correction. If it continues the company could be fined as well as the employee. WE ALL MUST WORK SAFE AND MAINTAIN A SAFE WORK ENVIROMENT.

 

 

 

 

The Local News USWA Local 5328 February 2006
President’s Notes: by Scott Duvall

After 2 years and 2 days we have finally exited CCAA. It has been a long roller coaster ride and you the membership deserve a big applause. Our company has deteriorated, while Stelco went through the legal battle trying to finish what they started. Many of our members and families have paid a price through layoffs. Some, we believe were unnecessary, but decisions were made to cut the Hourly workforce, while we were tripping over Salary. Bad business decisions were made and only we the hourly workers paid the price. But let’s not look back and blame others, let’s move forward and fix these mistakes.

As you are all aware, Mittal Steel took over our business officially February 1, 2006. This is good news for our membership and pensioners. Mittal feels that our business can be profitable if we change our methods and all work together. I believe this to be true; we all know we need management that will put this business back on its feet. We have agreed to a new collective agreement by 95%. That starts the framework of making this company viable and profitable. Mittal management toured the plant Feb.2nd and already brought in new faces to begin the challenges that we are to experience. This is not going to be an easy process, as I am sure there will be a lot of glitches. However, I know with time and patience, along with the knowledge we have, we will be successful in meeting these challenges, resulting in the job security that we need to accomplish, and get our laid off workers back in the plant.

So where do we start?

Our new management will need time to sort things out. The first priority should be to get the plant running efficiently, and get some orders. While that process is going forward, I will be requesting meetings with our new Director, Human Resources, Sandra Cabral, to agree to an agenda of the issues that need to be dealt with. (i.e.) Early retirement window, ISP payments, new contract language and obligations and any other issues that need to be addressed. This will take some time but will be dealt with as quickly as possible. Please be patient.

I assume that the Burlington Works committee will be setting up meetings on their issues also.

Mittal will be changing the name of the company. It will no longer be called Stelwire. New signs will be put up shortly.

Our new Director is Pierre Dulude, Pierre is in charge of all the subsidiaries, Quebec and Ontario, and will be at the plant a couple of days a week. Mike McQuade will be in charge of operations and sales, and reports to Pierre.

Daniel Robert is Mittal’s Vice President of Human Resources and Legal Affairs, he has recently hired Sandra and she will report to Daniel.

Richard LeBlanc is the CEO of Mittal Canada. Richard was a former employee of Stelco; he has a lot of knowledge and experience in the Steel Industry .

These are the people your committee dealt with in CCAA talks and negotiations. I am looking forward to working with them in our new endeavors.

Other News:

Pension Appeals:

After some length of time, we have resolved these appeals; Nick Vracar and Warren Langlois have been allowed disability pensions.

Great West Life Appeals:

Nick Vracar has been allowed full benefits, and we still have 3 outstanding appeals. There is some confusion with Great West Life on coordination of benefits that we are still trying to resolve.

I.S.P.

The $500.00 advanced payment as agreed to in our new agreement will be deposited in your bank February 17, 2006. This payment will be for Parkdale Works only.

C.O.L.A.

There was a .39 cent soft cola outstanding prior to the new collective agreement. This payment will be rolled into the basic wage effective February 1, 2006 for Parkdale Works. There is a .21 cent soft float remaining at both plants. Next Cola calculation will be at the end of February after the release of the CPI in January 2006.

Job Descriptions:

We are currently working on implementing the new job description for the Oil Temper Operator. Their still are many concerns and complicated issues that we are trying to work out, we are hoping to complete them soon. Other job descriptions will be worked on one at a time. We are hoping to do this in a timely fashion.

Early Retirement Window:

We have been discussing this issue and there may be some news on implementation as early as this week for Parkdale Works employees. Burlington Works employees should contact their Unit Chair for information.

Grievances:

We are currently working on receiving payment from the company on all outstanding matters prior to the contract. When payment is received we will work as quickly as possible on making payments to the employees affected. If you have any questions on your grievance, please see your Chief Stewards for the information.

Vacations:

We have heard many complaints about the vacation scheduling that had taken place. After discussions with Mittal, the parties agreed, that all vacation scheduling will be put on hold for the time being, as to allow the Chief Stewards a chance to forward your concerns to the Company and try to reach a mutual understanding.

A New Beginning - Darren Green, Vice President

After 2 years its finally over. Stelwire Ltd. is gone and with it a storied past especially over the last five years. Things have never been the same since the work stoppage of 2000. The bitterness which has continued since that time needs to come to an end. However that is now history, and as we make a fresh start with a new owner, we mustn’t forget the lessons of the past.

Cooperation not Confrontation, Compassion not Arrogance, Understanding not Condemnation, Loyalty not Indifference. Prior to 2000 we had all these things and we had a business that prospered.

We all hope that we have the start of a relationship which is needed to restore the above. During negotiations we heard time and again that our members will learn to trust Mittal, that they were not Stelco. That’s what we are counting on. Last Thursday I’m sure I heard a collective sigh of relief as representatives from Mittal walked through the plant and introduced themselves to as many people as they could. (They had to catch and early plane to Quebec). The response from the membership was great.

Now that’s not to say we won’t have our problems. Mittal at least recognizes there is a Union here to deal with. With an understanding of the issues and the commitment to cooperation, the parties will find a way to make this business work for all our benefit.

I would like to thank you the membership for your support and patience during the last two years and for understanding the need for us to be away from the plant for so long. A normal set of negotiations is long enough but this was ridiculous. I’d like to thank the Stewards, Executive and Committeemen for keeping a careful eye on things while we were away.

Also, I’d like to thank Scott and Tony, we made a good team. There were many dark, dark days and nights when we thought this whole process would blow up in our faces, but we stood our ground and here we are today with Mittal instead of negotiating a closure agreement with Stelco.

We still have many challenges ahead over the next couple of years as we implement the changes we agreed to. It’s not going to be easy but with your input, continued support and patience, we will together, turn this mill into the Flagship of the Mittal Wire Division.

A New Company - Tony Ciaramella, Chief Steward

A new company, a fresh start. Something we have all been waiting for, for a very long time. I would personally like to thank all the members of our great local for the support you all have shown over the last year and returning to the plant, after almost a year, with  praise and thanks but it is the members of this local who should be praised and thanked for their continued support for the negotiating committee, without that we could not have proceeded negotiating a new Basic Agreement. 

As we move forward to our new home there will be many trials and tribulations to overcome. If there is something you do not understand or need clarification on, please do not hesitate to ask. We need to understand and be patient with the new methods of the Basic Agreement and Metals approach to the business and at the same time upholding our rights.

I look forward to dealing with the new people that Mittal has brought into the plant and the big changes that we all have been waiting for to get this business back to when it was enjoyable to come to work and profitable to secure a future for all, past, present and future.



NEXT MEMBERSHIP MEETING
FEBRUARY15, 2006
6:30 pm
STEELWORKERS CENTRE

STELCO FINISHING WORKS CREDIT UNION ANNUAL MEETING HIGHLIGHTS

67 credit union members and 11 guests came out to our 64th Annual Meeting on February 1, 2006 at the Knights of Columbus Hall, 222 Queenston Rd., Hamilton. Members heard about operations during 2005 and voted on 2005 dividends on savings. The directors also presented information and survey questionnaires about the future direction our credit union should follow. We had a wide-ranging discussion and members were asked to let us know what they thought by filling out the survey. 46 members felt we should merge with another credit union, 15 felt we should try to rejuvenate the credit union and 2 felt we should continue on as is. 20 door prizes were distributed to adults and children (the 3 children also received a free looney for attending the meeting).

Your new Officers and Directors for 2006 are:
President :Liz Marskell
Vice-President :Bill Hannah
Secretary :Barry Duchesne
Directors:
Darren Green Dennis Marten Steve Thacker Wayne Thompson Norman Morris Joe Carretta
Doug Thompson

The following article is from Business Week:
FEBRUARY 13, 2006

GLOBAL BUSINESS
Mittal: Blood, Steel, And Empire Building
The father-and-son team at Mittal is in the hot
lights after a bid for Euro-rival Arcelor


The battle for supremacy in the global steel industry is getting personal. At a Jan. 30 press conference in Paris, Guy Dolléé, chief executive of Arcelor, the world's second-largest steel producer, kicked off his defense against a brazen $23 billion takeover bid from London-based Mittal Steel Co. (MT ) with a dig at the predator's owner and boss, Lakshmi N. Mittal. After introducing three senior management colleagues, Dolléé quipped: "My son is not on the management board."

Arcelor's chief was making a not-so-subtle reference to the fact that the Mittal clan exercises tight control over the steel giant and that the CEO's son, 30-year-old Aditya, serves in the key posts of president and chief financial officer. "If Lakshmi Mittal retired or got hit by a bus and Aditya took over, you wouldn't feel very good," says an industry source. He adds that while Aditya, who holds an undergraduate degree from Wharton, is sharp, it's the father who "has the strategic vision." What's more, some worry that Mittal's board lacks independence, which the Metals dispute. That -- and the fact that only 12% or so of Mittal's shares trade freely -- explains why the stock has typically traded at a discount of about 45% to its peers.

Mittal's cozy business ways are coming under scrutiny now that the Indian-born steel baron wants to weld a European giant onto his empire. No question looms larger than Aditya's place in a combined Mittal-Arcelor behemoth. "It is going to be an interesting question whether Aditya would survive in the enlarged group," says a source, noting that the son lacks the usual qualifications for serving as CFO, such as an MBA.
Still, Aditya is not just another spoiled rich kid. He has been a key player at his father's company since joining in 1997. He orchestrated its initial public offering that year and has worked on many acquisitions, including the $4.5 billion purchase of International Steel Group Inc. from American investor Wilbur Ross in 2004. That deal transformed Mittal into the world's largest steelmaker and boosted the family's fortune to some $20 billion. "Aditya has added a lot of value to the company and brought new perspective in terms of growth and strategy," says Lakshmi.

PRICING POWER
Father and son appear to complement each other well. Lakshmi, 55, has the entrepreneurial flair and the deep, hands-on knowledge of steel. Aditya is the number cruncher who's more comfortable with bankers and investors. "It's a very impressive double act," says someone familiar with the Arcelor deal. "Aditya is a very capable young man. His father listens to what he has to say."

Aditya says they hit on the idea of acquiring their Luxembourg-based competitor in November, after Mittal outbid Arcelor in a tough contest for Ukraine's Kryvorizhstal steel complex. Acquiring Arcelor would give Mittal greater pricing power and eliminate a rival in future deals. Mittal-Arcelor would have about 11% of the world market and sales of $60 billion.

The markets see the logic in the deal: Shares in the two companies have soared since the bid was announced. Investors also hope that an Arcelor takeover will force the Metals to address their corporate governance concerns. The Metals are vowing to add more independent directors to the six they already claim. Aditya also hints he may have to cede his CFO post to a more seasoned pro: "Personal egos would not come in the way." The deal would also boost the Mittal shares available for trading, by paring back the clan's stake to 50.7%.But the Metals won't cede ground on one issue: "We don't see any reason to give up family control," says Lakshmi. "In our view, family-controlled companies create better shareholder value." Looks like this dynamic duo isn't about to relinquish its super powers.


By Stanley Reed

Lakshmi Mittal

54 , inherited and growing
Source: steel

Net Worth: $25 billion

Country of citizenship: India
Residence: London, United Kingdom
Industry: Manufacturing
Marital Status: married , 2 children
St Xavier's College Calcutta, Bachelor of Arts / Science

Coming-out year for the steel titan, who now oversees the world's largest steel company, Mittal Steel. In December he merged his Ispat International with Ohio-based International Steel Group. Owns 88% of the $31.5 billion (sales) company. Recently shelled out $100 million for a new 12-bedroom mansion in London's posh Kensington neighborhood. Also reportedly dropped $60 million to host his daughter's five-day-long wedding celebration in Versailles last summer.
(Taken from Forbes Magazine)
 

Fired

A large company, feeling it was time for a shakeup, hired a new CEO. This new boss was determined to rid the company of all slackers.

On a tour of the facilities, the CEO noticed a guy leaning on a wall.

The room was full of workers and he wanted to let them know that he meant business! The new CEO walked up to the guy leaning against the wall and asked, "How much money do you make a week?"  A little surprised, the young fellow looked at him and replied, "I make $300.00 a week. Why?"

The CEO then handed the guy $1,200 in cash and screamed, "Here's four weeks' pay, now/GET OUT and don't come back.  " Feeling pretty good about himself, the CEO looked around the room and asked, "Does anyone want to tell me what that goof-off did here?"

From across the room came a voice, "Pizza delivery guy from Domino's

The moral of this story is that if the new owners want to know what's really happening here, talk to the workers.

Grievance Procedure / Parkdale

Under the new agreement with Mitall the grievance procedure has changed, we will be following the procedure as stated below.

1st step - The Employee and Steward at the employees choice, meet with department head.

2nd step - Chief Steward and Director, Human Resources meet.

3rd step - Grievance Committee and Plant Manager meet.

4th step - Mediation Officer

Steward

Jeff Walker, Guy Suttenwood - Johnson, Dan Blore, Terry Willock, John Butler, Vince Fuciarelli.

  The Local News
USWA Local 5328

December 2004

President's Notes: by Scott Duvall

We are now approaching our 11th frustrating month of CCAA. The members have done a great job keeping the workplace going forward while working with the stress, until a solution can be found to exit CCAA. As you probably have heard, the Court has ruled that Deutsche Bank will be the "stalking horse" or benchmark for all other bidders. To date there has been over 160 prospects with approximately 32 replies. The company will now go through the bids they deem serious, and will want the potential buyers to sign confidentiality agreements and go through a "due diligence" process and then binding offers will be received. Once this has been performed then the bidder may want to sit down with the Union and have discussions. We continue to work hard with Locals 1005 and 8782 opposing the company’s CCAA scam. Furthermore, we have agreed to unite with our brothers in Quebec and Alberta, to oppose the selling of Stelco, or its non core assets, unless it works within the Union’s 7 principles which were adapted at the last membership meeting.

The court’s decision to use Deutsche Bank as the basis for all other bidders, is disappointing to say the least. They do not work with "steel" but rather with "money" and have no vision for a restructured Stelco. Their answer is a win-win situation for the bondholders, sell off the non-core assets, inject some needed cash, leave the current management as is, and in return they are guaranteed to be first in line if Stelco walks down this road again. THIS IS NOT A SOLUTION.

The company brags about restructuring by reducing the salaried workforce, to the public and Court Monitor, but fails to tell them they had to actually rehire some as they were in essential positions and took the skills with them, the company did not have anyone trained to fill these positions. These people were hired back with more compensation. Courtney Pratt said this would be for only 3 months so they can train people. Stelwire management said they had to rehire, and cannot train as they have nobody to train. I think Stelwire Management should take some of their own advice "Lets do it right the first time".

Deloitte report: When the company claimed "the sky was falling", there were serious financial problems and they needed reductions in labour and legacy costs, we told them that we did not believe this was the solution, we believed it was due to mismanagement. Both parties agreed the Union would hire Deloitte to investigate the books and give us a written report of their findings. Deloitte cannot give us a detailed report as Stelwire Management has put a gag order on them. We understand that some things have to be confidential, but according to Deloitte they feel they would like to put certain items in the report that they consider not confidential, but the company will not allow this under the confidentiality agreement. Now this is completely contrary to what CEO Courtney Pratt has been saying publicly, he has noted that the atmosphere of mistrust that has developed over the years between Stelco management and its employees is a significant problem, which must be addressed if the restructuring is to proceed.

Quote "It takes sharing information. In my experience, this stuff all starts with being open and transparent. With labour Unions, if they believe you are not being open with information, they won’t trust anything you say".

He also said, "The only way we can win their support… is for them to basically see the information we’re using to come to conclusions about the situation the company is in"

Stelwire management said, "You do not need a detailed report, get Deloitte to paint you a bigger picture."

What was the purpose of this exercise, if Deloitte is the only person to have this information? We are currently working on this impasse and hope to resolve the matter.

Locker Report: Due to the poor performance of Stelwire over the last few years, and with management’s inability to articulate to Locker Associates a long term winning strategy for Stelwire, Locker Associates is convinced that there must be a management change. They find that senior management is in a "wait and see mode" and with some exceptions, do not appear to have a real strategy or plan for Stelwire. Most importantly, the report states, and I quote, "Locker does not believe that the current management with its antagonistic history with the Union, will be able to work collaboratively with the local to achieve the operations improvements and cost savings which Stelwire requires". Without a sophisticated and well thought out marketing strategy, which Locker does not believe this management has developed, Locker believes that Stelwire will not be able to survive. They also recommend that we work with the company on work shop rules. We have always said we would do this on a department by department basis, however the company has never responded to our request. Locker believes we should work with new management on this matter to become a viable and profitable operation. The Locker report also has many recommendations that meet with some of the Union’s 7 principles. Since

Christmas is coming we can only hope that Santa Claus brings us a buyer that can fulfill Locker’s recommendations and the Union’s principles so that we can work for a company that will prosper in the future and respect the employees.

With only 7 ½ months remaining, your negotiating committee has decided to start preparing for a new collective agreement. We encourage your input.

In closing I would like to wish you and your families a Merry Christmas and a happy and safe New Year.

 

Grievance Committee

Since Jan 29th the grievance procedure has been put on hold while the company has been in CCAA . Your committee has been able to resolve some grievances at second step, but once they get past that point the company has been allowed a stay on the grievance procedure by Judge Farley. This means that the grievances will be put on hold until there is a plan of arrangement to exit CCAA and they are resolved at that time, or the stay is lifted and grievances will continue to be processed under the terms of the basic agreement. Our most contentious issue at this time is vacation scheduling. There are outstanding vacation grievances from last year, and the company has discontinued its past practice of meeting with all the chief stewards and department heads prior to issuing the vacation scheduling rules, to try and avoid grievances or misunderstandings. The company has unilaterally set the rules and allowed grievances to pile up, while they hide behind CCAA. Ignoring the problems the employees are facing is not the answer, your committee will pursue your grievances, whether it’s the grievance process or at the negotiating table. Again this could all be avoided if Stelwire followed their own advice, "Lets make it right the first time".

 

Judge Farley’s November 29th Decision

- Stelco Workers Must Remain Vigilant

-Rolf Gerstenberger, President, USWA Local 1005-

USWA Local 1005 opposes the November 29 decision by Justice James Farley of the Ontario Superior Court to extend Stelco's Companies' Creditors Arrangement Act (CCAA) bankruptcy fraud and accept the Deutsche Bank seizure of Stelco's assets. Any notion that the court's decision is a victory for the workers is a dangerous miscalculation. The workers must remain vigilant about the use of the courts to promote the CCAA fraud.

It should be remembered that when the local unions opposed the original application by Stelco, the judge had to invent a new definition for insolvency in order to accommodate the company. The aim of the entire exercise is to enforce monopoly right to deprive the workers of their rightful claim on the wealth they produce. Now we are to believe that Stelco needs the protection of the "stalking horse" bid to make the company "viable," not that it is to ensure that the vultures that the Stelco board prefers get the upper hand and their plan comes to fruition. The minimum "break-up fee" of $6 million -- which will be taken out of the social product the workers produce -- once again underscores whose interests are served.

What solutions are Stelco and the court proposing? All bidders are going to increase the debt and attempt to exchange the unsecured debt for secured debt at onerous rates of interest. All the deals are designed to ensure a quick return on their investments while the market is hot. This explains why so much emphasis is put on the pension funding and the legacy costs. Any money put towards that takes away from their bottom line.

Justice Farley, in his endorsement of November 29, stated: "While I note that DB (Deutsche Bank) indicated that it was not asking for any concessions from the active workers, it should be appreciated (as it was by the unions) that the pensioners are the most vulnerable of the stakeholders in this situation." The media picked up on this statement as a sign that Justice Farley and the CCAA court care about the pensioners. This in turn promoted an impression that the workers have already won. Far from having won, what Justice Farley means by his statement is very murky. Who should appreciate that the pensioners are the most vulnerable, Justice Farley?

Let there be no confusion about the CCAA process or what the business community is demanding. The Dominion Bond Rating Service (DBRS) issued a press release on November 23 which stated that "Stelco's cost structure remains uncompetitive with labour costs in particular. Most integrated U.S. steel producers have renegotiated their labour contracts with lower labour rates, the elimination or sharply reduced legacy costs, and the removal of restrictive labour practices. Stelco still has its old labour contracts with onerous rates and pension costs." This mouthpiece for the bondholders continues the refrain of calling the workers a cost of production and quite openly signals what outcome they expect from Stelco's CCAA fraud. Courtney Pratt in his November 30 statement to employees, commenting on Justice Farley's November 29 decision, said: "We've stated from the outset that our goal is to preserve pensions, not weaken them.... And we've stated that our goal is a Stelco that, among other things, provides certainly for our pensioners."

What is one to make of this? Everyone is concerned about the pensioners in words, but the spokesman for the bondholders states that Stelco has to get rid of or reduce its legacy costs and the spokesman for Stelco talks about "goals," not legally binding responsibilities and fiduciary obligations. This shows that the workers must remain vigilant. Local 1005 will continue to demand that the company meet its contractual obligations to fund wages, pensions and benefits as stipulated in the legally binding collective agreement. Members of Local 1005 will not accept any attempt by the CCAA court to tamper with their collective agreement and thereby set more "legal" precedent.

 

LOCAL 5328 CHILDREN'S CHRISTMAS PARTY

December 19, 2004

Steelworkers Centre

1031 Barton Street East

1O am

Last Day to register and pay is December 16, 2004. Don’t miss out on what is always a fun filled day for the kids.

From : 

David Jacobs <djacobs@wjm-law.ca>

Sent : 

December 9, 2004 10:40:24 AM

To : 

 

Subject : 

SCC

Dear All,

I regret to advise that the Supreme Court dismissed our application for leave to appeal, with costs.  I believe that this decision was wrong in law in the face of a very powerful appeal argument.  The meaning of 'insolvency' will be fought over in future cases and in Parliament.  We have all contributed to the debate.

Regards,

David P. Jacobs

Watson Jacobs McCreary
Barristers
5255 Yonge Street
Suite 805
Toronto, Ontario
Canada
M2N 6P4

 

 

 

 

LAY OFFS 2004 –Darren Green

Since September 16, 2004 we have 27 people laid off. At this time last year we had 280 members, this year we are down to 222.

There have been many retirements as people decide it’s time to move on under the uncertainty of CCAA. We understand that there are many others getting their numbers in anticipation of the expiry of our collective agreement.

Unfortunately we are losing some very good people and the experience they have on their particular jobs.

Our work load has decreased dramatically and as Locker reports the current management is doing very little to explore the market place and has no strategy going forward other than selling the place. The fact that we just lost one of our long time sales people to Hilton Works doesn’t do anything to inspire confidence, although he has been replaced.

We have been through another round of bumps and everyone is getting frustrated. This frustration only increases when the company down crews equipment and bumps a person then the very next week it up crews the same piece of equipment and fills it with TT’s. When we bring it up, there is not even a hint of embarrassment. It’s just shrugged off and blamed on Production Planning.

There seems to be a general feeling throughout the plant that echoes the Locker report in that management here is not looking to the future and they are doing nothing to sustain the business. We cannot allow that to dictate how we conduct ourselves. If for any reason this business fails it cannot be blamed on us, the people who produce the product. We do our jobs with what we have and we do it well and we should continue to do it well. If we are to survive it will be because we made it happen not management.

The frustration we are feeling is leading to a lot of short tempers and a great deal of stress for every one. We can’t let this situation get the best of us. If we find it is getting to be too much then we need to get some help.

We have an Employee Assistance Program (EAP), which can be utilized to help us deal with the problems we are facing here at work and at home. EAP even offers free legal advice; all it takes is for a person to realize they have a problem and the will to ask for help. On the flip side of this page is a list of phone numbers which you can access. Please hang on to it. It’s not a weakness to ask for help. It’s the smart thing to do for you and your family.

One more week and we are out of here for two weeks. Use the time to recharge your batteries, to get reconnected with life outside these walls. Forget about work at least for a little while.

Worry about the things you can have an effect on, let us worry about Stelwire.

Your whole committee wishes you all the best for the season and let’s hope the New Year brings prosperity to all.

Union card worth $12,812

UCS / CALM -- Union members in the U.S. average $5,241 more a year in pay and $7,571 more in benefits than workers who don't have a union. The average economic value of a union card to the nation's 16 million union members was $12,812, according to the U.S. Department of Labour.

USWA 5328

Food & Toy Drive

We are asking members who attend our December Membership Meeting and Social to bring along an unwrapped toy or a non- perishable food item for those who are less fortunate in our community.

The items collected will be distributed by the Area Council Women of Steel Committee.

 

What is Stelco waiting for? - Darren Green

We are almost five months into the CCAA process and we are no further ahead than we were on January 29th, the day Stelco filed for protection.

We were in court again yesterday.

For the last month and a half Stelco has been arguing the point that they don't have to bargain with the Lake Erie local and that those members have no right to strike instead of sitting at the bargaining table to discuss restructuring under the collective agreement. Now they say they are running out of time and customers are getting nervous. (General Motors were in court yesterday with Justice Farley to get out of their contract with Stelco ). Now General Motors is echoing Courtney Pratt that Stelco needs a ninety day extension of the contract.

If Stelco doesn't have to bargain then why do they want to extend the contract? If the Union doesn't have the right to strike then why do they want 90 days notice before the Union goes on strike?

I give the three Presidents credit for sticking to their game plan. For being the first Union Locals to challenge the outdated CCAA process. I can imagine Courtney Pratt and his crew saying, A What have we gotten ourselves into? This wasn't supposed to happen!

Here at Stelwire not a whole lot has changed. Still no restructuring plan.

Bill Stenhouse has moved to Burlington Works and Craig Stevens has taken over the Wire Mill as part of his duties. One of his plans is to increase the wire mill crewing on continuous frames from 1 man 2 machines to 1 man 3, and from 1 man 1 to 1 man 2.

The new base crewing could look like this: 5,6,8; 19,20,21; 30,31; 32,33,34; 35,37 and possibly 53 & 54 becoming a 2 man 2.

The Union will be meeting with the company to discuss these changes.

We have also hired some vacation relief people. How this works out remains to be seen because some of our present members want the jobs these people will be working on (heavy continuous helper and bundling. The company doesn't want to train wire drawers because of the costs so they will use our members where their skills and seniority take them. As Scott said, we hope we can resolve this.

We feel that both of the above scenarios are not in the company's best interest because we will have people on jobs they don't want to be on, adding more stress to an already stressed workforce. How productive will that be?

We also have a new Salary/Management employee recently hired at Parkdale. He is taking over Production planning from Bob Pasket who has retired.

This summer promises to be an interesting one for all the Stelco Locals...Stay tuned.

 

Thank you to everyone who purchased a ticket for the Stain Glass sculpture. The winner was John Kovaks from Burlington Works.

Congratulations!

We raised $545.00 which will be given to a homeless Shelter.

Why are workers angry?
by Ken Georgetti/CLC/CALM

Air Canada workers across Canada are being pressured to agree to severe cuts in pay and benefits. In B.C., the Campbell government is forcing 43,000 health workers to take a 15 per cent wage cut, longer work weeks and continued layoffs. From B.C. to Newfoundland, working people-in particular, those who work in the public sector-are being asked to carry the can for other peoples' poor decision-making. Those at the top make the decisions, but those at the bottom bear the burden.

Canadians increasingly see such workers for what they are, ordinary working citizens trying to hang on to a half-decent wage while struggling to deliver decent services to people, families and communities. Meanwhile, private-sector workers are seeing their jobs moved offshore, plants closed and their retirement pensions threatened. Yet the share of all wage income going to senior executives has skyrocketed.

The one per cent of Canadians making more than $170,000 a year now earn 14 per cent of all before-tax income, compared to the nine per cent they earned in 1990. This means that the rest of Canadians, the other 99 per cent, now share a five per cent smaller share of all income than we did at the beginning of the last decade.

For example, over the 10 years from 1993 to 2003, public-sector workers, on average, received wage increases less than inflation. Their purchasing power actually fell by one per cent. They were not alone. Over this same period, private-sector union wages increased by just a hair above inflation-so that the average hourly wage for the entire workforce (adjusted for inflation) did not move at all.

To add insult to injury, income taxes for the top one per cent have been cut much more deeply than for the other 99 per cent, who got nice tax cuts on their stock options and capital gains on investments.

But wasn't this the decade of Liberal prosperity? In production figures, yes. In people terms, no. The economic-growth numbers have been pretty good, and unemployment has fallen somewhat. But a huge share of the income gains have gone to corporations and the rich.

For many people, Canada is rapidly becoming a low-wage country. One in four workers makes less than $10 an hour. A salary of less than $18,000 a year merely keeps a single person working full-time for a whole year above the poverty line.

After the Second World War, Canadian workers helped create a strong and vibrant economy that provided living wages and good living standards. And for the past decade, those family-supporting wages, living standards and our social programs have been under attack by the very well-off.

We never agreed to this. Canadian workers are increasingly angry because their wages are being cut, because their employers are usually pushing to make things worse, and because it is getting harder and harder to get the quality public and social services we used to count on.

That is why, whether they are pulp mill workers in Prince George, smelter workers in Chicoutimi, auto workers in Oshawa, fish-plant workers in Newfoundland or public-sector workers in health, education or social services, Canadian workers are banding together to support each other.

We're fed up. We should not have to go on strike to keep what we have already earned. We want a Canada that works for everyone. We want good jobs at family-supporting wages. We're not going to lose them so the rich can get even richer. Someone has to put the brakes on this rapacious greed or Canadians will see a lot more of what has been happening in Canadian workplaces.

$ Ken Georgetti is president of the Canadian Labour Congress

Pensions ripped off by large companies
Update/OSSTF/CALM

Private sector unions are increasingly having to fight their huge employers, usually major multinational corporations, in an effort to stave off losing their hard-earned pensions.

Big companies have always sought to maximize profits, often on the backs of their workers. More recently, however, a new low has been reached with companies who are overtly trying to rip-off employee pension plans to either try to impress potential investors or to pay off debts.

The most glaring example is Lord Black of Crossharbour (a.k.a. Conrad Black), who a few years ago went after the pensions of Dominion store employees. The courts later reversed his actions and favoured the employees in their fight to protect their pensions, but much of the damage had already been done. More recently, other companies such as Air Canada, have been using their employee pension plans as bargaining chips or worse, as cash cows to improve their bottom lines.

Try to imagine being an employee who has worked many years, dutifully contributing to your pension plan. You are planning to retire or have already done so and the company comes in and strips your benefits -and you have no say. You can no longer plan on having access to your full pension nest egg.

That is exactly what is happening to the Stelco workers in the United Steelworkers.

The company is trying to strip the workers of their wages, pensions and benefits. Stelco recently took the union to court in an effort to deprive the workers of their rights by hiding behind the Bankruptcy Protection Act.

The Steelworkers fought back, arguing that there is no evidence that Stelco is insolvent. In a handwritten, 48-page decision, Superior Court Judge James Farley upheld Stelco's position despite the fact that there are strong arguments against Stelco's claims of insolvency.

Send a message...Vote NDP - Darren Green

On June 28th Stelwire employees will join the many millions of Canadians who will vote for the party which will govern Canada for the next five years.

We make mention of it here because of the importance we place on the current laws regarding CCAA and the need to change them.

The current Liberal government has done nothing to aid the workers affected by CCAA.

They did nothing when the Steelworkers lobbied to have tariffs placed on imported steel. Even the sitting members representing the Hamilton area refused to help us.

Tony Valeri sat as the Chair of the Steel Caucus. He did nothing.

Sheila Copps whose riding included Stelco did nothing.

Stan Keyes says they have not been approached by the Company.

Paul Martin the Prime Minister of Canada can't help because Stelco owes his family money from their shipping business.

The New Conservative Party are Liberals in a hurry. Their promise to reduce business taxes should say enough.

The only alternative is the NDP. They have promised to change the laws governing CCAA. Specifically, they promise to put workers at the front of the line for money owed. They will protect workers' pensions.

The NDP could hold the balance of power in what is likely to be a minority government. That will give them the power to get these improvements enacted.

So on June 28th , vote for the NDP candidate in your area. It's your future.

NDP CANDIDATES

Hamilton East-Stoney Creek

Tony Depaulo

Hamilton Centre

David Christopherson

Hamilton Mountain

Chris Charlton

Ancaster-Dundas-Flamborough-Westdale

Gordon Guyatt

Burlington

Davis Laird

Halton

Anwar Naqvi

Haldimand - Norfolk

Carrie Sinkowski

Brant

Lynn Bowering

St. Catharines

Ted Mouradian

 

 

 

At the June membership meeting there will be a motion to cancel the July and August meetings.

If for any reason the President needs to meet with the membership, he will call a special meeting. Notice of such a meeting will be posted on the boards and our web site.

The Executive, Committeemen and Stewards would like to wish you a happy and safe summer. Please don't forget to include Labour Day (September 6th) in your plans.

President's Notes: by Scott Duvall

    CCAA:

    In January, Judge Farley ruled that the Company was insolvent. The Union appealed this ruling, but in March the appeal was denied. The Union then appeals to the Supreme Court of Ontario, and this motion is also denied.

    Since this time, several meetings with the Company and the three Local Unions have taken place including, Hap Stephens, Courtney Pratt, Colin Osborne and Ron McClure, along with their lawyer Steve Shamie and ours, David Jacobs, to discuss the current situation that Stelco faces. Unfortunately, at no time, has the Company given any indication of positive restructuring, their only solution is still monetary concessions from the employees, past, present and future.

    We also met with the Premier, Dalton McGuinty, and his aides, who indicated that they wanted to help. When Local 8782 announced that they were ready to bargain, as their Agreement was to expire July 31, 2004, the Company said that this was prejudiced to their position of entering CCAA (Companies Creditor Arrangement Act). They stated that they would meet at the CCAA table and not the traditional Bargaining table. They went public and announced that it was their understanding under CCAA, that the Union was not entitled to any rights under the OLRA (Ontario Labour Relations Act).

    Then the Ontario Labour Minister, Chris Bentley announced that he would appoint a mediator to help the parties start the process of talking at the table. The Union had requested a meeting with the Premier and the Labour Minister to inquire as to our rights under the Labour Relations Act and the Human Rights Code, as these departments had given us notice that they could not interfere once Judge Farley had made his ruling. The Government responded, quote, A we understand your problems, but we are not interested in meeting with you on these issues. After several complaints, through the media, about this treatment, the Government announced that they would forward a motion to Judge Farley on June 14th asking the Judge if they could appoint a conciliator to the parties as Local 8782 requested under the OLRA.

    Why would a Government go before a Judge and ask if they could use their own law? Why would the Government not enforce their law and let the company challenge it? Why do citizens of Ontario lose their rights under the OLRA when a company goes CCAA? Why does the Ontario Human Rights Code not apply to employees when a Company goes CCAA?

    These are questions that I cannot get answers to, and the Government said they do not want to address them at this time. We have been told on numerous occasions, publicly, by our Liberal MP's and MPP's that they want to help, A we are watching very closely the Stelco situation , A we are very much concerned about the retiree's and employees . Yet where are they when the Union requests help? Nowhere to be seen or heard from. This is a disgrace, and you should be letting them know this by calling them, and expressing your concerns. An election has been called and the candidates will be at your door soon, ask them why they have not been assisting you. If they say that they have not been asked by the company yet, then ask, what about the Union, why have you turned your back on them?

The Judge ordered all council involved to meet and discuss the optimum process for engaging in meaningful discussions and submit a report to him of the status by June 3rd. Council presented a proposal to the Locals and after several discussions, the Locals agreed to five principles that basically said we would discuss all issues of Stelco's problems, including restructuring under the terms of our Basic Agreements, and also that Stelco consent to a conciliator to be appointed by the Minister of Labour.

Since this proposal, the Company and Union have met three times in the past week, however, the company will agree only if the conciliator has no power or authority under the OLRA and that Local 8782 extend their expiry date further. The Company was looking for the end of year. Local 8782 responded that the maximum they would go was 30 days advanced notice of filing a No Board Report to the ministry. This was great movement on the Union's part, however, the Company's response was that they needed 90 days because of customer concerns, and that they would appeal to the ministry if we applied for a No Board Report, as it is their position that we are not entitled to a conciliator while under CCAA. The parties are still at an impasse and have agreed to hear the Government's motion on Monday June 14th, 2004.

On some other issues:

Hiring:

The good news is that all of our laid off members have been recalled on a permanent basis at Parkdale Works. We have also hired six vacation relief employees at Parkdale and five at Burlington Works. There is a dispute over placement of these workers at Parkdale, and we are hoping this issue can be resolved soon. As summer approaches and with the CCAA on our minds, I would like to remind everyone to work in a safe manner.

Great West Life:

I have had several complaints from members getting their prescriptions filled recently, it seems that 60 and 90 day supplies on some medicines have now been reduced to 30 days. We believe this is costing a large amount for dispensing fees. Your complaints have been forwarded and we are awaiting an answer from the Company.

Retirees:

Local 5328 now has a Retiree Committee. Over 120 retirees met on April 29th and elected Joe Crugnale, Dan Butler, John Mc Laughlin, and Kevin Mullett to this standing committee. Their duties will be to communicate with the retirees on all upcoming events, CCAA and any other issues pertaining to Local 5328. Our retirees are important to us, and I would like to take this opportunity to thank those who are participating in this newly created organization.

Local 8782 & 1005:

I have attended Local 8782 & 1005 membership, retiree's and information meetings and they have expressed their thanks to me verbally and with loud applause for the strong support we have given each other in our fight with the company.

In closing, I would like to mention how very proud I was of the turnout by this Local at the Rally of May1, 2004

Have a safe and enjoyable summer.

What is Stelco waiting for? - Darren Green

We are almost five months into the CCAA process and we are no further ahead than we were on January 29th, the day Stelco filed for protection.

We were in court again yesterday.

For the last month and a half Stelco has been arguing the point that they don't have to bargain with the Lake Erie local and that those members have no right to strike instead of sitting at the bargaining table to discuss restructuring under the collective agreement. Now they say they are running out of time and customers are getting nervous. (General Motors were in court yesterday with Justice Farley to get out of their contract with Stelco ). Now General Motors is echoing Courtney Pratt that Stelco needs a ninety day extension of the contract.

If Stelco doesn't have to bargain then why do they want to extend the contract? If the Union doesn't have the right to strike then why do they want 90 days notice before the Union goes on strike?

I give the three Presidents credit for sticking to their game plan. For being the first Union Locals to challenge the outdated CCAA process. I can imagine Courtney Pratt and his crew saying, A What have we gotten ourselves into? This wasn't supposed to happen!

Here at Stelwire not a whole lot has changed. Still no restructuring plan.

Bill Stenhouse has moved to Burlington Works and Craig Stevens has taken over the Wire Mill as part of his duties. One of his plans is to increase the wire mill crewing on continuous frames from 1 man 2 machines to 1 man 3, and from 1 man 1 to 1 man 2.

The new base crewing could look like this: 5,6,8; 19,20,21; 30,31; 32,33,34; 35,37 and possibly 53 & 54 becoming a 2 man 2.

The Union will be meeting with the company to discuss these changes.

We have also hired some vacation relief people. How this works out remains to be seen because some of our present members want the jobs these people will be working on (heavy continuous helper and bundling. The company doesn't want to train wire drawers because of the costs so they will use our members where their skills and seniority take them. As Scott said, we hope we can resolve this.

We feel that both of the above scenarios are not in the company's best interest because we will have people on jobs they don't want to be on, adding more stress to an already stressed workforce. How productive will that be?

We also have a new Salary/Management employee recently hired at Parkdale. He is taking over Production planning from Bob Pasket who has retired.

This summer promises to be an interesting one for all the Stelco Locals...Stay tuned.

Thank you to everyone who purchased a ticket for the Stain Glass sculpture. The winner was John Kovaks from Burlington Works.

Congratulations!

We raised $545.00 which will be given to a homeless Shelter.

 

 

NDP CANDIDATES

Hamilton East-Stoney Creek

Tony Depaulo

Hamilton Centre

David Christopherson

Hamilton Mountain

Chris Charlton

Ancaster-Dundas-Flamborough-Westdale

Gordon Guyatt

Burlington

Davis Laird

Halton

Anwar Naqvi

Haldimand - Norfolk

Carrie Sinkowski

Brant

Lynn Bowering

St. Catharines

Ted Mouradian

At the June membership meeting there will be a motion to cancel the July and August meetings.

If for any reason the President needs to meet with the membership, he will call a special meeting. Notice of such a meeting will be posted on the boards and our web site.

The Executive, Committeemen and Stewards would like to wish you a happy and safe summer. Please don't forget to include Labour Day (September 6th) in your plans.

 

 

 

 

 

 

 

 

 

The Local News

Special CCAA Edition

USWA Local 5328 CCAA Edition

March 2004

 

President's Notes: by Scott Duvall

    Since the company filed for CCAA on January 29, 2004, your Union executive has been very busy working with Local 1005 and Local 8782, preparing for our fight with the company and the courts, to maintain our hard earned gains. We have kept you informed, and up to date on the proceedings, as much as possible.

    While I will not go over the past, of which you have been informed, I would like to comment on Judge Farley's ruling, which is more an opinion rather than a decision. This 42 page scribble is an insult and disrespectful to all Ontario citizens. He rules on the A balance of probability more than on facts or case law, that the company is insolvent. His behavior in court is rude and unprofessional.

    If any lawyer had given Judge Farley a hand written affidavit or motion that was scribbled , I am sure he would have thrown the case out and chastised the individual for insulting the court. At the end of the ruling he scrawled, A subject to edit if typed up . Does this mean he can change his ruling if we can understand his penmanship? To get respect you must earn it, and this Judge in my books, has a long way to go.

    After having discussions with our lawyer, David Jacobs, the three local presidents have agreed to appeal this decision. We are also asking for a date for the second part of our motion to be heard, in which the Union asks that our collective agreements stay intact.

    As we go forward, a lot of this will be playing on our member's minds, let the Union do it's job and we urge you to focus on the task at hand, so that you will work safe. I want to assure you that all three Locals are working collectively for the best interest of you and our pensioners. Do not listen to rumours, we will keep you informed as quickly as possible.

     

    On other issues:

    Lake Erie Works will have available, approximately 14 summer relief jobs. The Company and Union have agreed to send out letters to our laid off members to make them aware of this situation, so that they can apply for these openings. To this date we have 29 members on lay off, 22 temporary and 7 permanent.

    Our stewards and Chief Stewards are doing a great job in settling grievances with the Department Heads. Grievances not settled at this level will be put on record and heard on another date when the Judge lifts the stay.

    Both Contracting Out Committees met in January at which time the Union forwarded proposals to try and save substantial costs, through the elimination of some contracting out work. We are waiting for the Company to respond.

    Hamilton Fights Back May 1st at Copps Coliseum. It is important that you attend, we also would like you to bring your family and neighbours. Lets have a strong showing from Local 5328.

    We need your support for this Rally!!!


Stelco Lake Erie assets posted as collateral for $525M credit line

Monte Sonnenberg - SIMCOE REFORMER - Thursday March 25, 2004

Stelco's assets in the Nanticoke Industrial Park have been pledged as collateral against the company's emergency lines of credit.

Creditors registered Stelco's local holdings as security at the Norfolk registry office March 10. The documents, which are signed by company president and CEO Courtney Pratt and senior vice-president of finance William Vaughan, peg the value of these assets at $525,000,000. The stated rate of interest is 25 per cent per annum.

News of the filing caught the United Steelworkers of America off guard.

Since Stelco filed for bankruptcy protection in January, management and the union have been locked in a bitter dispute over the true value of the company and the actual state of its finances. The company claims it needs to restructure to avoid insolvency. USWA says the bankruptcy filing is a ploy designed to nullify Stelco's obligations under its assorted collective agreements.

USWA Local 8782 represents nearly 1,400 steelworkers in Stelco's Nanticoke facility. President Bill Ferguson, Jarvis, admits to being baffled by the documents filed at the Norfolk registry office.

Yesterday, Ferguson pointed out that, in its initial court filing, Stelco estimated the value of its Lake Erie holdings in the range of $300 million. As well, documents before the bankruptcy court say current lines of credits are secured with inventories and accounts receivable. There is no mention of real estate.

"It's absolutely insane," Ferguson said. "It certainly opens a new door for us. It's going to raise a lot of new questions as to exactly what's going on here."

Ferguson and his colleagues are astonished that the company would tell the bankruptcy court that Stelco Lake Erie is worth about $300 million and then claim assets there in the amount of $525 million.

"What's the reality here?" Ferguson said. "This deserves investigating. We're going to be turning over rocks on this. It really smells."

Ferguson added that Ernst & Young, the court-appointed monitor of the bankruptcy proceeding, should have made these documents available to all parties. Local 8782 has referred the security filing to accountants Deloitte & Touche for further review.

Alex Morrison of Ernst & Young is monitoring the bankruptcy proceeding as an officer of the court. His role is to assist Justice James Farley with the restructuring process. Yesterday, Morrison says there is nothing unusual or unexpected in the registry documents.

"People are making more of these documents than they really deserve," he said.

In proceedings such as this, Morrison says it is normal for creditors to register security against their loans. Since Stelco filed for bankruptcy protection, several firms have extended lines of credit in the amount of $525 million.

Morrison says it is standard for creditors to inflate the stated value of collateral. The $525 million, he says, represents inventory, accounts receivable, and the value of Stelco real estate in Haldimand.

Morrison added that the 25 per cent interest rate represents a floating rate in a worst-case scenario. Creditors have been mindful, he said, of high interest rates since they topped 20 per cent in the early 1980s. The actual interest Stelco is paying, he said, is closer to prime plus a markup of 2.5 percentage points.

Stelco Lake Erie is the one division of the giant steelmaker that is profitable. In documents filed with the bankruptcy court, Stelco says multi-million dollar upgrades to the Nanticoke plant are key to returning to financial health.

Yesterday, Don Belch, Stelco's director of government relations, couldn't say whether the company plans to draw on its credit lines for these investments. However, he did say that the Lake Erie plant "is certainly the cornerstone we intend to build around."

    USWA recently challenged Stelco's resort to protection under the Companies Creditors Arrangement Act.

    Monday, Justice Farley ruled in favour of the company. Farley said Stelco's limited cash resources coupled with its current rate of "cash burn" make the company a good candidate for bankruptcy protection. Stelco says it would be insolvent by the end of the year if it didn't have protection from its creditors.

    The security registration documents list CIT Business Credit Canada Inc. as the creditor of record. Other parties to Stelco's $525 million credit line include Fleet Capital Canada and GE Capital Canada.


     

    Court in Contempt of Workers' Right to Due Process

    On March 22, 2004, the union received a handwritten 42-page photocopy of Superior Court Judge James Farley's decision on the motion filed by Local 1005, Local 8782 and Local 5328 on February 13. The original motion asked to have Stelco's January 29, 2004 Companies' Creditors Arrangement Act (CCAA) application rescinded on the grounds that there is no evidence that Stelco is insolvent. The locals are opposing the use of CCAA as a method to legally deprive the workers of their wages, pensions and benefits.

    From the moment the decision was released, we have been inundated with requests for comment. We have spent a great deal of time and effort in trying to transcribe Judge Farley's ruling, since his handwriting is almost illegible. We were able to transcribe the last two pages of his document so that we could read his conclusion, but we have been unable to decipher more than half of his 42-page document. It has finally struck us that this manner of handing down a decision is arrogant to say the least. In our opinion, it reveals utter contempt for the workers whose lives and futures could be decided by what happens in this court. We also think it holds in contempt the right of the workers to due process.

    Are we to believe that the Superior Court has no resources to get a decision typed? Is the judge to be praised for being thrifty when he writes his decisions on stationary from the Golden Tulip Hotel in Dar es Salaam? Are the workers supposed to tolerate being held in contempt on the grounds that these are mere technicalities?

    The Superior Court of Ontario is financed with our tax monies. Where does the money go when an appointed judge is not even held accountable for this arrogant lack of professionalism? Are there no facilities in this day and age to be able to dictate a decision if the judge is too busy? Or are there no computers and secretaries available to have the document properly prepared? The workers are facing a rule of law in the form of a massive machine and machinations. The first day of hearings there were 57 law firms listed on the service list. There are court appointed monitors who are paid large sums of money. Stelco has a Chief Restructuring Officer who was paid more than $65,000 a month to do restructuring at Algoma in 2002 and rumour has it that this has been increased to some $80,000 a month to handle the Stelco case. We already wasted our precious time and money to "discover" his affidavit to which he could attest nothing. With all these resources against the workers, are we to believe nobody is responsible for the conduct of this judge and that it is impossible to get a legible copy of the decision?

    The lack of professionalism in this CCAA process, which the entire legal profession seems to accept as par for the course, speaks volumes about what is wrong with the CCAA process. From the outset, our attempt to seek justice is treated in a frivolous manner. We are simply told time and again to get down to the serious business of discussing with the company what part of our wages, working conditions, pensions and benefits we agree to give up!

From what we were able to make out from Judge Farley's Golden Tulip decision, he treated the legal arguments put forward by our three locals in a frivolous way to vindicate his decision to grant Stelco CCAA when no evidence exists that it is insolvent. From what we can see, instead of upholding his duty to weigh the evidence, the conclusion he draws on page 42 is that "I properly exercised my discretion in granting Stelco and the [illegible] applicants the [illegible] on January 29, 2004 and I would [illegible] that as of the present date [illegible] on the date of filing. The unions motion is therefore dismissed."

We do not feel that we can proceed further until the three union locals are provided with proper copies of the judge's decision. After we have had enough time to actually go through the decision, only then will we take the next step. We do not agree that the workers' legitimate concerns can be reduced to scribblings on some hotel paper. No amount of musings by the judge can hide the fact that he has shown utter contempt for the workers and their unions

How is CCAA affecting us?

- Darren Green

Here at Stelwire we are trying to continue as we had prior to the CCAA filing. The relationship between the Union and Company has been cordial in that we are trying to resolve issues without the use of the grievance procedure. For the most part we've been successful although there have been a few suspensions and discipline reports which have been grieved.

As you are aware Justice Farley has stayed the grievance procedure so these grievances will be dealt with at the end of the process. It should be noted that Lake Erie Works and Hilton Works are dealing with all grievances through every step of their grievance procedure, excluding arbitration. Stelwire will only deal with 1st and 2nd step. We are told this is a corporate decision.

One of the biggest complaints I receive from people in the #1 wire mill is 53 Frame. It's up and down like a yo-yo. Two people are tt'd there for three weeks and put back on their base jobs for a week or two and then tt'd back again for another two or three weeks.

Why is 53 frame not posted? The simple answer of course is that if they post, they will get senior qualified people applying for it, and they want the two people they have tt'd. Also people can't bump there if there is no base job.

Grievances are filed on this, however you should note that the grievance says that these two people should never have been bumped from there. So we are seeking back pay and the base job for these two members.

The goal of the union of course is to keep as many people employed as possible until we reach the peak vacation period around the middle of June. Then hopefully we will have everyone back to work who wants to come back. Some say they are finished with Stelwire and are waiting for CCAA to wrap up so they can get their severance package.

We haven't seen any plans from our new general manager regarding specific restructuring plans he has in mind for Stelwire. When Scott and I met with him on January 29th, he said he would have a plan which he could present to us in a couple of months. We look forward to seeing it.

I have been told that there is a buyer who is looking to purchase 30 to 40 of our nail machines. Perhaps this will make room for one of the furnaces from CRPP???

 

USWA LOCAL 5328

 

The Pension Benefits Guarantee Fund - How It Works - By Scott Duvall

We have done some research on how the Pension Guarantee Fund (the A PBGF) works in a very general way and believe that this information be communicated to both retired and active members .

In the Province of Ontario, defined benefit provisions are protected through the mechanism of the PDGF, which is funded through employer contributions. Employers who have larger deficits in their plans must contribute more in increased premiums based upon the fact that a large deficit gives rise to a riskier type of pension plan.

There are certain exclusions from the PBGF coverage, for example any benefit increase that came into effect within the last 3 years will not be protected under the PBGF. In the case of the Stelwire Plan ( Parkdale Works) the increases in the bridge benefit and the basic benefit that took effect in August 1, 2001, 2002 and 2003 will not be covered. Instead , coverage will be based on the $40 basic benefit and the $19 per month supplemental benefit. In addition, members whose age plus years of service total less than 50 (e.g. age 35 with 10 years service) will not be protected under the PBGF but will, instead , only receive the funded ratio of the plan. Members whose age plus years of service total more than 50, but less than 60, have 20 percent of their benefit protected while members whose age plus years of service total more than 60 will have their benefits fully protected.

The PBGF guarantees benefits to a maximum of $1000.00 per month. The guarantee, however, is not as straightforward as it seems. The way the plan works is that members receive a benefit based on the funded position of the plan. For example, if a plan had a 50% funded ratio (in other words, it was able to fund 50% of its benefits) and a member was entitled to a pension of $2000.00 per month, the way in which the PBGF would work would be as follows.

The member would receive $1000.00 from the PBGF. The member would receive 50% of the balance (50% multiplied by $1000.00) or $500.00 from the plan. As a result, the member would receive a total befit of $1500.00 per month($1000.00from PBGF and $500.00 from the plan). In other words, then, a member would have his or her benefit substantially protected. Bride benefits are protected by the PBGF but the overall benefit maximum of $1000.00 still applies.

The best way for me to illustrate these points is by way of example.

Example 1, a 40 year old member with 10 years of service.

Benefit Calculation Basic Monthly Benefit: $ 40. x 10 years = $400.00

Supplemental Monthly Benefit: $ 0.

This member is not eligible for a bridge befit.

Total Monthly Benefit $ 400.00 per month

In this instance, the PBGF will guarantee 20 percent of the benefit or $80.00 per month. In addition, the member will receive 200.00 from the plan for a total benefit of $ 280.00 per month.

The member will, on plan termination, have the right to receive the commuted value of his her plan benefit and to transfer this amount in to a registered retirement savings plan or to purchase an annuity.

Example 2, member age 35 years with 10 years of service:

Benefit Calculation Basic Monthly Benefit: $40 x 10 years = $400.00

Supplemental Monthly Benefit: $0.

Total Monthly Benefit: $400.00 per month

This benefit will not be protected under the PBGF because the member's age plus years of service total less than 50. The member will instead receive a commuted value of a benefit equal to 50 percent of $400 per month. The member will have the right to transfer the commuted value to an RRSP or to purchase an annuity on plan termination.

Example 3, member age 52 with 30 years of service

Benefit Calculation Basic Monthly Benefit: $40 x 30 years = $1200.00

Supplemental Monthly Benefit: $19 x 30 years = $ 570.00

Total Monthly Benefit: $ 1770.00

The PBGF will provide a monthly benefit of $1000.00 per month. For the period between age 52 and age 65 the members pension provides a $19 supplemental benefit. (The higher bridge benefits to which members are entitled under the collective agreement with Stelwire is ineligible for protection because it came into force within the last 3 years). The member will also receive $385.00 (50 percent multiplied by the remaining $770.00) for a total benefit of $1385.00. Once the member attains age 65 the member is no longer eligible for the bridge benefit and his her pension will be reduced to $1100.00, consisting of $1000.00 from the PBGF and $100.00 (50 percent by the remaining $200.00 per month) from the plan.

The member will have the right to transfer the commuted value to an RRSP or to purchase an annuity on the plan termination.

The PBGF is ultimately guaranteed by the Province of Ontario. This means that even in a circumstance where a plan is under-funded and if the employer were to go bankrupt, the Province of Ontario would be in a position to support the pension benefits of plan members.

 

 Hamilton East B Stoney Creek

Nomination Meeting

Please join with members, other supporters, activists and us

Sunday April 4th, 2004

Registration begins at 1:00pm

Speeches at 1:30pm

Riverdale Community Centre

150 Violet Dr. Hamilton

(near Centennial Parkway Hwy 20 & Barton St.)

With MPP's Michael Prue (Beaches East York) &

Peter Kormos (Niagara Centre)

Refreshments available

Our own Tony DePaulo will be seeking nomination as the candidate for Hamilton East - Stoney Creek. Tony currently serves as the International Representative for USWA Local 5328 and is the Area Coordinator for the Hamilton Steelworkers Area Council.

Tony has been involved in the CCAA process at both Slater Steel and Stelco. He understands our issues and the pressures facing the Steel industry as a whole.

Please try to attend and show your support for the one person who can take on Tony Valeri.

 

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