Steel Mills

Ottawa Says “No” to Release of US Steel Agreement

April 19, 2015

The Canadian government says it will not release the agreement made with US Steel after it dropped a lawsuit against the company in 2011.

“It would be against the law for us to release this information without the agreement of the company,” said Industry Canada spokesperson Jake Enwright as quoted in the Hamilton Spectator. “On our own the government cannot make these commitments public.”

Enright added that US Steel is a private company and can release the information if it so chooses.

The Canadian federal government brought a lawsuit against US Steel in 2008 after the company reneged on promises to keep more than 3000 workers employed for three years following the purchase of the former Stelco facilities. A year after the acquisition, US Steel laid off 1500 workers at Hamilton Works and Lake Erie Works.

Canada dropped the suit in 2011 in exchange for promises of capital investments in the Hamilton and Nanticoke and various small grants to community groups. The details of the agreement were sealed to the consternation of USW workers, prompting skepticism that the government actually received anything in return for dropping the suit.

USW officials and the City of Hamilton have requested the agreement be made public, saying information contained in the agreement may affect rights of workers and retirees of the company. On Monday, the union will present an official request for the release in court.

In the meantime, US Steel Canada is moving forward on plans to sell Lake Erie Works and Hamilton Works.