More details on U.S. Steel decision expected Tuesday
'The agreement is an important step in separating the two parties'
A more detailed ruling is expected Tuesday from the bankruptcy court judge who approved a transition plan that will sever U.S. Steel Canada from its U.S. parent. The decision also allows the company to suspend health-care benefits for tens of thousands of retirees.
By Friday evening, the U.S. Steel flags were already down at the Hamilton plant.
- U.S. Steel flags disappear from plants minutes after court decision
- Judge approves U.S. Steel transition plan, suspends retiree benefits
- Feds could sue over U.S. Steel benefits: Industry minister
In a brief decision on Friday, Justice Herman Wilton-Siegal endorsed a plan for U.S. Steel Canada to form its own company to manage its Canadian assets. He also endorsed its request to suspend health-care benefits to 20,000 pensioners, and to allow a reprieve on paying property taxes. He signalled in court Thursday he intended to release a more detailed decision sometime Tuesday.
The agreement states that U.S. Steel, the parent, won't bid to buy U.S. Steel's Canadian operations.
"The agreement is an important step in separating the two parties," according to a U.S. Steel statement issued Friday.
The Friday decision has sparked a flood of response:
- Pensioners are worried about their future. "The real story is that 20,600 people will be without benefits that they've earned," said Gary Howe, president of United Steelworkers (USW) Local 1005.
- Cities are worried about lost tax revenue. Mayor Fred Eisenberger said the city still doesn't know the exact impact of the property tax decision. USSC pays $6 million per year in property taxes, and the remaining portion for 2015 is $1.6 million.
- The province has offered some money to ease pensioners' situation: Ontario Finance Minister Charles Sousa said his government would spend $3 million to establish "a transitional fund" administered by USSC and the union.
- Politicians are working the angles ahead of next week's federal election. Federal Industry Minister James Moore said Monday the government could sue over the U.S. Steel benefit promises.