Steel Mills
USW: USS Stop Destroying Canadian Operations
Written by Sandy Williams
September 11, 2015
Concern is mounting regarding US Steel’s announcement that it will move production from US Steel Canada to the United States.
“When is the federal government going to stand up to U.S. Steel and defend Canadian workers and pensioners?” asked Gary Howe, President of USW Local 1005 in Hamilton in a recent USW posting. “From Day One this Conservative government has refused to hold U.S. Steel to its legal obligations to maintain jobs and production in Canada. Now the company is moving our highest-value production to the U.S. and this government is doing nothing in response.”
Ken Rosenberg, an attorney for the USW, asked Ontario Superior Court Justice Herman Wilton-Siegel to block the move.
“The USW believes this ‘move’ by USS [United States Steel Corp.] is designed by USS to have a devastating impact on the revenue earnings and cash flow of Hamilton Works and Lake Erie Works at a critical and vulnerable time,” wrote Rosenberg in a letter to the court on Thursday.
Production from the Canadian mills is to be shifted to the U.S. by the end of October, despite an attempt by CCAA court monitor Alex Morrison to have the change delayed until January 1, 2016. Moving production from Hamilton and Lake Erie Works would result in a reduction of approximately $40 million of revenue for the last three months of 2015 and approximately $162 million of revenue for 2016, wrote Morrison in his most recent report.
The two strongest bidders for the Canadian assets are believed to be US Steel Corp. and Essar Steel Algoma. Province officials and the USW fear that a successful bid by US Steel, using owed debt as payment, would irreparably damage the already underfunded pension plan for retirees at the Canadian assets.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: April mill shipments fall, sheet down YTD
US steel mills saw a decline in shipments from March to April.
Hybar rolls first rebar, ramping up Arkansas mill commissioning
The startup steelmaker produced its first rebar at its greenfield steel mill in Osceola, Ark., marking a key milestone by completing construction in 22 months.
Goncalves: Despite higher tariffs, two Cliffs mills to remain idled
Cleveland-Cliffs Chairman, President, and CEO Lourenco Goncalves said he would keep one mill idled and still plans to idle another despite increased protections from Section 232 tariffs doubling to 50%.
Trump says Section 232 tariff on steel, aluminum to double to 50% at Pennsylvania rally celebrating Nippon-USS deal
At a rally celebrating a “planned partnership” between U.S. Steel and Nippon Steel, President Trump announced higher tariffs on steel and aluminum imports into the United States, and revealed few more details on Nippon’s investment in USS’ operations.
CRU: Trump hails a partnership of Nippon with USS
In a social media post, President Donald Trump said a planned partnership between Nippon Steel and U.S. Steel will add $14 billion to the US economy and ensure USS remains headquartered in Pittsburgh.