U.S. Steel Canada operating under bankruptcy protection
The United Steelworkers union (USW) is asking a court to reinstate health benefits for thousands of retired workers.
USW filed a motion in Ontario Superior Court to force U.S. Steel Canada, which is operating under bankruptcy protection, to allow 20,600 former workers access to Other Post Employment Benefits (OPEBs). The payments were suspended last October after the company petitioned the court.
"We hear terrible stories every day from retirees who are unable to get the medical services and supplies they require," said USW Ontario director Marty Warren. "Their benefits can and must be reinstated immediately."
The union was also unhappy with payments of $1.57 million expected to be paid in retention bonuses to current executives.
"It's unconscionable that U.S. Steel management can stuff their pockets while health benefits have been taken away from our pensioners, the most vulnerable group affected by this restructuring process," said Bill Ferguson, president of USW Local 8782 at U.S. Steel's Nanticoke operations.
The union has received access to $2.65 million in emergency funding for its affected workers from the Ontario government, which announced a transition fund. But the money isn't enough, according to the union.
"The abrupt suspension of OPEBs caused significant hardship," according to an affidavit sworn by Tony DePaulo, assistant to USW Ontario director. "Retirees were in the middle of receiving treatment for cancer for which drugs were not covered."
