OTTAWAA grim anniversary passed unmarked last week in a once-proud steel town.
It was one year ago that Pittsburgh-based U.S. Steel began its shutdown of the blast furnace at the former Stelco in Hamilton, a precursor to its lockout of 900 workers a month later.
One year later, the workers remain on the street and the 2007 U.S. Steel purchase of Stelco remains the neon sign advertising the inadequacies of a toothless and secretive Investment Canada Act.
U.S. Steel is now threatening a permanent shutdown at its Hamilton Works and the federal government, which allowed the takeover, is powerless to do anything about it.
The two sides return to the bargaining table Monday morning, but there appears to have been little movement from either the American company or Local 1005 of the United Steelworkers.
“Having talks is better than not having talks,” says 1005 president Rolf Gerstenberger.
The American company promised that its takeover would provide a “net benefit” to Canada, including the maintenance of employment levels and production.
It has done neither, blaming the 2008 economic downturn for its broken promises while fighting Ottawa in court, tying up the government’s bid to fine it for breaking its word.
It has been more than two years since Ottawa took the steelmaker to court.
Former industry minister Tony Clement talked tough at the time, vowing Ottawa would not simply “roll over” and let potential foreign investors think they can make and break promises with impunity.
That’s exactly what the American company has done.
The latest faceoff between the company and the government — which seeks penalties of $10,000 per day — is not expected to be heard in Federal Court until 2012.
The NDP and organized labour in this country have long argued for revisions to the Investment Act, arguing that “net benefits” are determined in closed-door meetings between industry and government, shutting out members of the community affected and, most crucially, representatives of the workers.
The NDP, backed by the Liberals, moved a motion last year seeking revisions to the act, calling for public hearings in affected communities and requiring the government to publish the reason for its decisions and the conditions to be met by approved foreign owners.
The Conservatives once promised a review of the act, but have backed off that pledge now that they have a majority.
“Hundreds of families are losing a breadwinner and economic hardship is being felt by families throughout the region because the government has failed to act to ensure that U.S. Steel keeps its word,” British Columbia New Democrat Peter Julian told the Commons.
Julian is on another crusade for the workers, pushing Ottawa to extend their employment insurance benefits once they run out in November.
A year ago, the government essentially declared the locked-out workers to be laid off, giving them the benefits for a year.
Without that extension, the fewer than 750 remaining workers will have to subsist on about $200 a week from their union.
Ottawa is not offering to re-up and the union wasn’t expecting it.
The current impasse is all about pensions.
The company is demanding that any new hires be denied defined-benefit pensions available to existing workers. It also wants to end pension indexing for some 9,000 Stelco retirees.
The union has rejected both demands and has never put the offer to a vote.
Last year, the federal government blocked a $39 billion takeover bid by Anglo-Australian miner BHP Billiton for Potash Corp., saying the deal was not a “net benefit” to Canada.
They also moved to save Conservative seats in Saskatchewan.
But by allowing U.S. Steel to thumb its nose at a federal law, the Conservatives have signalled that Hamilton doesn’t matter to them.
Origin
Source: Toronto Star
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