Pensioners fear for future as U.S. Steel looks to cut benefits

Steelworkers and pensioners protested, Wednesday,outside the Toronto courthouse where U.S. Steel Canada is arguing it should be allowed to stop paying pension contributions and property taxes.

On Monday,a court monitor report supported the plan from U.S. Steel Canada to suspend health carebenefits to pensioners.

Benefits are huge, because I don't know what my future is going to be.- USSC pensioner Chris Young

The court-appointed monitor agreed,in a report Oct. 2with U.S. Steel,that it will have to stop operating soon if it doesn't implement financial measures that include suspending payments for other employment benefits to pensioners (OPEBs) and some pension benefits.

The monitor also agreedthat U.S. Steel Canada needs a reprieve from payingproperty taxes. The company made this requestas it seeks extension of itsCompanies' Creditors Arrangement Act (CCAA) bankruptcy protection, which is scheduled to end in December.

A court ruling allowing for that reprieve would mean a significant hit to city coffers, saidHamilton Mayor Fred Eisenberger inletter sentto federal and provincial leaders and mediaWednesday.

The loss of $6 million in municipal taxes would be equivalent to a 1 per cent tax increase for residents, he said.

"The loss ... compounded year after year would have a tremendously negative impact on the city's finances," he said.

Eisenbergercalledon the provincial and federal governments to intervene to protect the 7,000 U.S. Steel Canada pensioners in Hamilton, thousands of other pensionersand workers around the province. He cited the precedent of thegovernments' responseswhen the auto sector failed more than a decade ago.

"20,000 people in Hamilton and the Golden Horseshoe is also significant, and requires immediate action," Eisenberger said."Those numbers are startling, and I would suggest evenmore serious considering who is impacted. ...We need reassurance that a plan is in place for our most significant andimpacted residents."

'This is utterly unthinkable'

On Monday, union leaders were disappointed with the court report, but not surprised.

"In every single monitor's report, they've steered the way of U.S. Steel Canada,"GaryHowe,president of the United Steelworkers Union Local 1005, said.

Another court appearance is scheduled forThursday."This is utterly appalling and I've even used the words unthinkable," Howe said.

The monitor, in his report acknowledges the concerns of the union and "agrees that this will impact many individuals who have no responsibility for what has happened."

But he argues it is the only way to keep the company operating,saying: "The unfortunate (butinevitable)fact is that USSCdoes not have access to liquidity or financing to honour these obligations," addingthat if the order is not made the companywould have to temporarily cease operations. Howe has filed an affidavit arguing against the suspension of OPEBs and pension benefits.

One of the protesters Wednesday was 66-year-old Chris Young, a 30-year veteran of U.S. Steelwho uses a walker and relies on his benefits to fund medications and treatments for his diabetes and degenerative spinal condition.

The threatof losing that benefit plan and pension which came from deferred wages during his working days, he said is "inhuman."

"Don't let the Americans get away with this," he said.

Watch the video above for more of Young's perspective.