Decision expected Friday in U.S. Steel plan to cut pensions, taxes

A judge is expected to issue a decision Friday on a stark plan for U.S. Steel to divest itself of future responsibility for its Canadian subsidiary, U.S. Steel Canada, the former Stelco, Inc.

The controversial plan is backed by the court monitor overseeing the U.S. Steel Canada bankruptcy restructuring process. The plan would relieve the parent company of obligation to pay millions in pension payments and municipal taxes, though U.S. Steel would provide "critical services" to U.S. Steel Canada for up to two years.

It's unclear ahead of the judge's decision what the timing of the cuts to benefits and tax payments would be. 

• Court monitor backs U.S. Steel proposal to suspend retiree benefits
• VIDEO: Pensioners fear for future as U.S. Steel looks to cut benefits

It's like working on the side of a volcano.- Bill Ferguson, president, United Steelworkers Local 8782 

"With U.S. Steel making a declaration that they intend to leave Canada, it's now up to us," said Bill Ferguson, president of the Lake Erie Works steelworkers local 8782. "With U.S. Steel saying they're pulling the plug, we intend to build a company."

Ferguson's resolve comes against the looming threat of lost benefits and pensions for retirees and union workers, dozens of whom have been attending the hearings in Toronto this week. 

For the people who spent decades working in coke ovens and steel mills, health conditions abound and retirees depend on benefits, Ferguson said. 

​"It's like working on the side of a volcano," Ferguson said. "Their lives are shortened substantially."

The cuts to post-retirement benefits: "That's the worst hit that we can possibly take." 

The proceedings judge is expected to issue a short decision Friday with a more detailed decision to come Tuesday after the Thanksgiving holiday.