Steelworkers union pledges to fight for retiree health benefits

John Gallant knows as much as anyone what's at stake in U.S. Steel's recent court request to stop paying health benefits to its pensioners.

The east-end Hamilton resident is 63. He worked at a Stelco mill for 32 years. After a United Steelworkers Union (USW) media conference on Friday, he pulls out square piece of paper out of his pocket listing all his medications. There are about 15.

Gallant can't live without them, but he can't afford to buy them either. For years, he's been relying on his Stelco pension and other post-employment benefits (OPEBs) to deal with his heart problems and rheumatoid arthritis.

How am I going to survive without benefits?- John Gallant, Stelco retiree

Now U.S. Steel — the American company that purchased Stelco in 2007 — is asking for the court to extend its protection under the Companies' Creditors Arrangement Act (CCAA) so it can restructure. As part of that extension request, it wants to suspend payments of post-employment health, medical, dental and life insurance benefits. It also wants to stop paying special pension contributions and supplements, and its local property taxes. USW and a group of retirees have filed motions opposing the request.

Gallant uses few words to talk about his feelings, but he admits it. He's scared.

• U.S. Steel wants to suspend payments of benefits and property taxes
• U.S. Steel to take production out of Hamilton without court consent

"I got papers saying I was going to get so much a month and my benefits are going to be covered," he said. "Now I'm being told they might not."

"How am I going to survive without benefits?"

Cases such as Gallant's caused USW to sound off at their hall on Barton Street. In a room of about 40 people — mostly NDP politicians, federal election candidates, city councillors and retirees — they didn't mince words.

"We're sickened by the attack on the most vulnerable people in our community — seniors and pensioners," said Gary Howe, president of Local 1005. "Attacking their healthcare is just unbelievable."

Tony DePaulo, USW assistant to the director for Ontario and the Atlantic provinces, said the company hasn't met with the union face-to-face since it informed USW of its CCAA application last July.

The court order, if granted, would provide additional time to find a consensual restructuring solution.- Michael McQuade, president and general manager of U.S. Steel Canada

And "what we saw yesterday was just another despicable low from U.S. Steel to try to bully us and get their own way and whittle this company into oblivion."

U.S. Steel Canada entered CCAA protection in September 2014. Most recently, the court extended it until Dec. 11, 2015.

The company wants to restructure or sell its Hamilton and Nanticoke operations, but argues that without an extension, it will have to cease operations at the end of this year.

14,000 workers and retirees impacted

"With a court order, we can preserve work and meet obligations to approximately 2,200 employees and continue to deliver high-quality steel products to our customers from our two Canadian steel-making facilities," said Michael McQuade, president and general manager of U.S. Steel Canada, on Friday.

"The court order, if granted, would also provide additional time to find a consensual restructuring solution, and to conduct a new Sale and Restructuring Process when market conditions improve."

They're not going to take the OPEBs and they're not going to hurt our retirees.- Tony DePaulo, United Steelworkers

Also contributing to the need for this court order are the steps taken by U.S. Steel Canada's parent company, United States Steel Corp., to reallocate Canadian production to its facilities located in the U.S., the company said.

And now with an order issued Wednesday, retired Superior Court judge Douglas Cunningham will mediate between U.S. Steel and various stakeholders — namely the union and the provincial government — to break the logjam preventing the company from restructuring.

U.S. Steel's latest "threat," which impacts about 14,000 workers, is a particular insult to Hamilton workers who have health issues related to their jobs, Howe said. Many retired early, concerned about the health impacts, only to have the fear of losing benefits "hanging over their heads."

'We're not going to abandon anybody'

DePaulo said USW is a "fighting union" that plans to take the pension and OPEBs battle to court. "They're not going to take the OPEBs and they're not going to hurt our retirees."

Bill Ferguson, president of Local 8782, made a similar pledge.

"We are not going to abandon anybody," he said. "Our pensioners and our OPEBs are sacred to us. They're sacred to the union movement."

Mayor Fred Eisenberger issued his own statement Friday supporting the USW and retiree motions before the court.

"I am requesting a response from all parties in the federal election to the question: what actions are they prepared to take to protect all involved?" he said. "I intend to leverage their ability to support the motions in front of the court."