UNITED STEELWORKERS
USW LOCAL 8782
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UNITED STEELWORKERS USW LOCAL 8782
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Negotiations Information and Company Proposal S.L.C. and Pension Information Rally Pictures (Parliament Hill) Information for Members on Layoff and Action Centre Website link Donations from Businesses and Organizations Picket Line Information for Members and Captains Local 8782 Collective Agreement
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This page will display current news inside and outside the plant.
Some of the newsletters are large files and can take some time to open depending on your internet speed. Please allow enough time for them to open. Any other problems please email vp@uswa8782.com. Thanks To Read the Weekly Newsletter Dated February 24, 2010 Click Here To Read the Weekly Newsletter Dated March 3, 2010 Click Here
U.S. Steel to
pay $187,500
TheSpec.com
- Local - U.S. Steel to pay $187,500
Pleads guilty
to '08 discharge of soot over North End U.S. Steel Canada will pay a penalty of $187,500 for discharging a plume of black soot that spread over Hamilton's North End as people were enjoying bayfront parks and the Waterfront Trail on a warm summer evening two years ago. The company pleaded guilty yesterday to one violation of Ontario's Environmental Protection Act for the release from its Hamilton Works blast furnace on July 11, 2008. Similar events occurred on July 31, Aug. 7 and Aug. 19, all blamed on the furnace bleeder valve opening to prevent a potentially dangerous pressure buildup inside. Ministry investigators reported sooty, black deposits on cars, boats, homes, patio furniture, gardens and clothing. Some people reported difficulty breathing. One resident told The Spectator it looked like black dust bunnies falling from the sky. Frances Jewell, past commodore of the Hamilton Bay Sailing Club, said members were eating vanilla ice cream after a barbecue and suddenly found themselves and their ice cream covered in soot. U.S. Steel Canada, which bought the former Stelco in 2007, has six weeks to pay a fine of $150,000 and a victim surcharge of $37,500. Laid off Steelworkers plan massive rally to mark anniversaryPosted By SIMCOE REFORMERMarch 1, 2010U.S. STEEL:Workers preparing for one-year anniversary of mill closing DANIEL PEARCE Laid off steelworkers from Nanticoke are planning a massive rally at the front gate of their plant to mark the first anniversary of the closing of the mill. The event will be held Sunday, March 14, from 1-3 p.m., and all members of the public are invited.
More than 800 people lost their jobs at the U.S. Steel plant in a series of layoffs that began last March. The remaining 200 workers were locked out in August. Bill Ferguson, president of the United Steelworkers Local 8782, said his members remain hopeful they will be able to return to work. "I believe we will get through this and will get that plant opened again," Ferguson said last week in a brief address to the Port Dover Board of Trade's annual meeting. Standing a few feet away from local MP Diane Finley, who is also Canada's minister of human resources and skills development, and her husband Senator Doug Finley, Ferguson thanked the community for "its support during these troubled times." Public support across both Norfolk and Haldimand counties "has been fantastic," he said. Ferguson also thanked Diane Finley for her help in fighting the mill's closure, saying she has been "wonderful for us." The Nanticoke plant -- said to be one of the most modern and efficient in the world -- was closed by its American owner, U.S. Steel, after the recession hit the industry hard in 2008 and 2009. US Steel May Consider 'Acquisition
Opportunities' US Steel says it will continue to "assess North American and international expansion and divestment opportunities" in 2010, according to a recent filing with the US Securities and Exchange Commission. "We may consider 100% acquisition opportunities, joint ventures and other arrangements," the company said in the filing, seen by Steel Business Briefing. The Pittsburgh-based steelmaker also said in the document that flatrolled results for the current quarter "are expected to improve from fourth quarter 2009." It did not say by how much, however. "Average realized prices are expected to increase from fourth quarter 2009, as we expect to begin realizing the impact of increasing spot market prices later in the first quarter," the company said. "We are currently making steel at six of our seven North American steelmaking locations, with the exception being our Lake Erie Works, which represents approximately 10% of our annual flatrolled raw steel capability. "We expect to complete maintenance work on our largest blast furnace, the No 14 blast furnace at Gary Works, late in the first quarter and have all available capacity in operation at these six locations before the end of the quarter." USS added that overall Q1 raw steel capability utilization rates are expected to increase from Q4, as well.
Ontario’s
economy kicking into gear
TheSpec.com
- BreakingNews - Ontario’s economy kicking into gear
Conference
board says province’s economic growth will be second to B.C. this year Ontario is expected to be the second strongest economy in the country this
year, after British Columbia, and to outpace the national average for the first
time in a decade. Growth in Ontario is projected at 3.5 per cent this year.
Premiers plead case in U.S.February 20, 2010-TheStar.com Robert Benzie
WASHINGTON–Premier Dalton McGuinty and other provincial leaders have taken their case for fairer and more open trade with the U.S. to the White House. McGuinty and six other premiers met for 80 minutes late Friday with U.S. President Barack Obama's top adviser on the economy, Lawrence Summers, chair of the National Economic Council. In the imposing surroundings of the Roosevelt Room in the West Wing, the premiers urged Summers to resist protectionist trade policies that would undermine the economies of both countries. "I got the sense from his conversation that there's an appreciation that we're next door and we're already doing well, why would we not find ways to continue to exploit that," said McGuinty. "I like to think that under this administration there's a greater level of receptivity to Canadian concerns," the premier said. "The question that I put to Mr. Summers is, `President Obama's put forward an ambitious target to double U.S. exports during the course of the next five years. ... Where does Canada factor into that and is there a specific strategy in place to achieve that target?'" he said. "His answer was that the target at this point is more aspirational, there's no specific strategy (yet)." With the recent storm over "Buy American" provisions in the U.S. economic stimulus package that shut out Canadian companies until Obama and Prime Minister Stephen Harper forged a deal to allow greater access, the premiers worry about further trade protectionism. The controversial accord between Ottawa and Washington gets Canadian firms around some U.S. barriers. In exchange, American companies can bid on provincial and municipal projects in Canada. Still, premiers fear protectionism will surface elsewhere. To that end, McGuinty and the other members of the Council of the Federation are hopeful that Saturday's historic joint session with the powerful National Governors' Association of state leaders will pay dividends for Canadian interests. "I'm very pleased with the access we've been given here. It's an opportunity to get our message out. It opens up doors," McGuinty said. Saskatchewan's Brad Wall, chair of the premiers' council, said the summit is "an opportunity to tell Canada's story and for us to make the case for fair and free trade." The premiers also met for 45 minutes with Lisa Jackson, head of the Environmental Protection Agency. Wall, as leader of an energy-producing province, called an EPA ruling last year a cause for "concern" because it said greenhouse gas emissions are a matter of public welfare, which means the agency can regulate them. "Obviously, they're heading down this road. In both meetings (with Summers and Jackson) there was a reference to the fact the U.S. can't act unilaterally, that this should be the product of international agreement," he said. "So that was heartening," said Wall, who worries environmental regulations could be used as trade sanctions by stealth. But Wall made the point that the Obama administration is also concerned about energy security and with plentiful oil reserves right next door, that's good news for Canada. McGuinty is flying back late Saturday after a day of meetings with the governors. But on Sunday, the other premiers will meet with Secretary of Agriculture Tom Vilsack. On the agenda is the controversial U.S. country-of-origin food labelling that has hurt Canada's farmers.
Steel Shipments Rise in Canada, Aluminum in U.S.
American Machinist Staff
02/16/2010
The Metals Service Center Institute’s first report for 2010 found steel shipments from U.S. metals centers totaled 2.58 million tons, or 0.9% below January 2009 levels. As the latest month closed, U.S. centers held inventories of about 6.26 million tons, 26.2% less than the January 2009 inventory total. That is equal to a 2.4-month supply of steel in stock at current shipping rates. Centers in Canada shipped 440,000 tons in January, an impressive 9.2% above January 2009 steel shipments. Canadian inventories at the end of January totaled 1.18 million tons, a 2.7-month supply.
U.S. Steel
workers contribute cash to pension fight
TheSpec.com
- Local - U.S. Steel workers contribute cash to pension fight
The Hamilton Spectator (Feb 18, 2010) Hamilton steelworkers dug deep yesterday, raising more than $7,000 to help fellow steelworkers fight to protect their pension plan. It's a battle the Hamilton workers know they'll be facing by the end of the summer. Yesterday's special collection at the gates of U.S. Steel's Hamilton plant was to help 1,000 workers at the company's Lake Erie Works in Nanticoke. They've been locked out since August after refusing a demand to turn their defined benefit (DB) pension plan into a defined contribution (DC) model. DB plans guarantee retirees a certain amount, usually based on length of service. DC plans, like a registered retirement savings plan, pay a pension based on how much has been contributed. "Pension is the issue here," said Bill Ferguson, president of the United Steel Workers local at Nanticoke. "The average Canadian worker should be scared to death by the way this is happening." U.S. Steel declined to comment about the situation. The nation-wide fight over retirement plans has intensified in recent years. The stock market crash of 2008 slashed the value of most pension plans, but with DB plans, employers are required to make up the difference between the value of what's in their fund and what it would need to pay promised pensions if the company were to go out of business. That can be a tremendous cost -- when the former Stelco went into bankruptcy protection in 2004, it was facing a pension deficit of $1.4 billion and said the cost of covering that shortfall in the required five years would cripple it. Stelco eventually won an agreement from the provincial government to spread repayments over a longer term as well as a $150-million injection of public money. Since its purchase by U.S. Steel, the situation hasn't improved sharply -- market turmoil in 2008 slashed about $300 million from the value of the fund that supports 9,000 Hamilton retirees. Based on that valuation, the plan has less than 58 per cent of what it would need to cover the pensions workers were promised. An updated valuation is to be completed this year. Rolf Gerstenberger, president of the Hamilton steelworkers local, said the major weakness of DC pension plans is that they put all of the risk on workers -- if they happen to retire when the stock market and interest rates are down, their pension income is cut. "Whatever happens, under those plans it's the employee who takes the hit," he said. "When the market crashes, that can mean quite a bit less on your pension." The problem is especially sharp for the Hamilton local, where 850 active workers are responsible for creating enough value to support 9,000 retirees and pay U.S. Steel the profits and returns it wants from the Canadian operations. Despite those issues, Gerstenberger said workers should get what they were promised when they committed their working lives to the company. "We didn't do anything wrong, we went to work every day and made steel," he said. "We know this is going to be an issue in our negotiations, but we've been consistent in saying we didn't cause this problem." When an employer goes out of business with an underfunded pension plan, pensioners face having their retirement income slashed to cover the shortfall. That's the issue faced by about 100 retirees from CHCH TV, who've been told their pension plan is about 23 per cent short. Several thousand employees of Nortel Networks Corp. barely escaped that fate earlier this month. Their plan is about 30 per cent underfunded, but their pensions won't fall below $1,000 a month after the provincial government agreed last week to put enough money into a special insurance fund to cover that amount. The federal and provincial governments are struggling to find a longer-term solution. In December, Queen's Park announced the start of a two-stage process it said will clarify benefits for people who are affected by layoffs, eliminate partial pension windups after 2011 and make it easier for plans to restructure when companies do. In October, before Parliament was suspended, Ottawa proposed reforms that require companies that wrap up their pension plans to pay all the benefits owed to their workers. Firms will also be banned from taking a holiday from contributions unless the plan has a 5 per cent funding cushion. The federal reforms, however, didn't provide any protection for pensioners if a company declares bankruptcy. That's part of a private member's bill tabled by Hamilton MP Wayne Marston, of the NDP, that is still before Parliament despite prorogation. Other proposals have called for an expansion of the Canadian Pension Plan and changes to the rules governing RRSPs to increase what people can contribute. "We see a real need over time for a shift from employer plans and RRSPs to a broader public plan," said Andrew Jackson, economic and social policy director of the Canadian Labour Congress.
Local steelworkers take collection for Nanticoke
TheSpec.com
- Business - Local steelworkers take collection for Nanticoke
Hamilton steelworkers will be asked to put their money where their hearts are tomorrow morning in a special plant-gate collection for locked-out friends in Nanticoke. The special collection at the gates of the U.S. Steel Canada plant in Hamilton will raise money to help workers locked out of their jobs at the company's Lake Erie Works since Aug. 3, 2009. Rolf Gerstenberger, president of United Steelworkers Local 1005, said the collection is intended to show support for the Nanticoke workers. They were locked out when their collective agreement expired and they rejected a package of concessions. Gerstenberger noted his members could face the same situation this year when their own contract expires. "In a few more months we're going to be in the thick of it as well," he said. "The company wanted wage, benefit and pension concessions and they really haven't been talking since." Starting at 5:30 a.m. workers reporting to the Gage Avenue and Wilcox Street gates of the Hamilton plant will be asked to dig deep by a crew of 35 canvassers. "This is about solidarity and money, but the more money you collect, the more solidarity you show," Gerstenberger said.
Local
steelworkers take collection for Nanticoke
TheSpec.com
- Business - Local steelworkers take collection for Nanticoke
Hamilton steelworkers will be asked to put their money where their hearts are tomorrow morning in a special plant-gate collection for locked-out friends in Nanticoke. The special collection at the gates of the U.S. Steel Canada plant in Hamilton will raise money to help workers locked out of their jobs at the company's Lake Erie Works since Aug. 3, 2009. Rolf Gerstenberger, president of United Steelworkers Local 1005, said the collection is intended to show support for the Nanticoke workers. They were locked out when their collective agreement expired and they rejected a package of concessions. Gerstenberger noted his members could face the same situation this year when their own contract expires. "In a few more months we're going to be in the thick of it as well," he said. "The company wanted wage, benefit and pension concessions and they really haven't been talking since." Starting at 5:30 a.m. workers reporting to the Gage Avenue and Wilcox Street gates of the Hamilton plant will be asked to dig deep by a crew of 35 canvassers. "This is about solidarity and money, but the more money you collect, the more solidarity you show," Gerstenberger said. Canada Steelmakers Hurt By Buy America Program Commodity Online - February 16, 2010
Germany
steelmaker ThyssenKrupp says 1st quarter profit dipped 2 per cent
TheSpec.com
- Business - Germany steelmaker ThyssenKrupp says 1st quarter profit dipped 2
per cent
FRANKFURT, Germany - German steelmaker ThyssenKrupp AG said Friday that its first quarter net profit dipped 2.4 per cent from last year, as a drop in revenue offset its costs cuts. The company, based in Duesseldorf, earned C164 million (nearly US $225 million) in the September-December period compared with C168 million a year earlier. Despite the drop, the figure beat analysts' estimates and it was the first time that the company was in the black since the end of December 2008, having faced restructuring charges and the effects of the global economic downturn on the steel industry. Revenue fell 19 per cent to nearly C9.4 billion compared with C11.5 billion in the final three months of 2008.
Steelworkers Protest US Steel’s ‘Wholesale Indifference’
By Jane Slaughter
Created Feb 11 2010 - 11:40am
Ask a union member what’s the bedrock of a union contract, and most will
answer “seniority.” Long established as the way to keep the manager’s
brother-in-law from getting the good jobs, companies have learned to live with
taking turns and following recall lists.
But not U.S. Steel. At its Great Lakes Works south of Detroit, the company came off a nine-month shutdown last summer picking and choosing who it wanted to work in the mill. Some workers with more than 35 years’ seniority are still on the street while some with less than three years are inside. Asked what reason management gave for not calling her back, 31-year member Doriscine Wesley said, “Low seniority.” Rank and filers called for action, resulting in a 200-person picket line outside company HQ Wednesday. A Steelworkers Local 1299 [1] leaflet decried management’s “wholesale indifference” to parts of the contract:
Local 1299 President Marc Barragan announced that Great Lakes turned a small profit in January—by “doing as much or more with fewer workers.” Many workers on the job are working seven 12-hour shifts a week, or longer. “Every day we read about an economic recovery with the exception of the unemployment rate,” Barragan told the crowd. “US Steel and other companies are resuming operations but without the numbers of workers.” Added a machinist, “They’re making a profit because they’re working them to death in there.” Some workers brought their children to the march, which was accompanied by continuous honking from passing motorists in the blue-collar town of River Rouge. Fifteen-year-old Miranda Branstator, one of five children of laid-off electrician Everett Branstator, took advantage of a snow day to “show everyone how many people it affects.” Twelve-year electrician Dave Erskine, now on his second unemployment extension after 14 months off, said, “This is the first time I’ve had to stand up for anything in my life.” Asked why US Steel—signatory to one of the oldest labor contracts in the U.S.—thought it could get away with ignoring that contract, Erskine said, “Because they’re ruthless and they have deep pockets.”
Arcelor-Mittal posts $1.07b Q4 profit as demand grows
TheSpec.com
- Business - Arcelor-Mittal posts
$1.07b Q4 profit as demand grows
The Associated Press BRUSSELS, Belgium (Feb 11, 2010) ArcelorMittal SA, the world's largest steel maker, posted a fourth quarter profit of $1.07 billion yesterday and said it expects demand to strengthen this year. Steel buyers worldwide are set to increase purchases by 10 per cent this year, said Aditya Mittal, the company's chief financial officer, as manufacturers in developed and emerging markets use up excess stocks. The parent of Hamilton's ArcelorMittal Dofasco has been hit hard by the recent steel slump. The profit in the last three months of 2009 was higher than a third- quarter profit figure of $903 million and well above a $2.6-billion loss in 2008's fourth quarter. Still, the company made a profit of just $118 million for all of 2009, compared to a $9.4-billion profit a year earlier. ArcelorMittal says demand is already picking up -- with first quarter shipments outpacing the fourth quarter -- but warned that this will be offset by lower selling prices and higher costs for iron ore and coking coal. Net debt will increase during the first quarter, it warned. Mittal said the company would hike prices going forward but was still feeling the pain of fulfilling orders made when prices were lower late last year. He said ArcelorMittal will refocus from paying off debt to investing in its business, seeking growth opportunities in India and Brazil. It has some $4 billion to spend on new projects this year. Mittal said the company sees demand in developed countries -- the United States, Germany and Japan -- growing 15 per cent from a very low level. Emerging markets such as Brazil will also grow 15 per cent -- except for China, where demand will grow at a steadier 5 per cent. ArcelorMittal blamed lower selling prices and weak demand for the steel used for cars, machinery and buildings for poor profits last year. Average prices were down by more than a quarter. ArcelorMittal produced some 6 per cent of world steel in 2009 -- down from its usual 10 per cent.
This agreement isn't worth the cost
By Jim Stanford From Tuesday's Globe and Mail-Feb. 9, 2010
The impact of Buy American on our aggregate exports has been statistically invisibleIt's a clear case of déjà vu all over again. Back in the '80s, Brian Mulroney raised the spectre of U.S. protectionism, then set out to win guaranteed access for our exports. He didn't succeed: We got a "dispute panel" system, instead, and even that doesn't work. But his government was publicly committed to guaranteed access, so Mr. Mulroney put a brave face on his 1988 deal - spinning it as essential insurance and worth the steep price (control over our energy). The rest, of course, is history. From softwood to beef to steel, U.S. trade policy (driven by the nitty-gritty of U.S. politics) has been as active and arbitrary as ever. "Guaranteed access" was always a fiction. Now, instead of learning from that experience, we're seeing a near-exact reprise with last week's "agreement in principle" on government procurement. The Harper government has been playing catch-up since the Buy American controversy blew up a year ago. Stephen Harper's stated goal, as it was for Mr. Mulroney in 1988, was to negotiate Canadian exemption from U.S. trade laws. The talks dragged on, and now most of the Recovery Act money has been spent. But, as in 1988, the optics of coming home empty-handed were abhorrent. So negotiators unveiled a "breakthrough" last week: Canadian companies get a temporary right to bid on whatever contracts have not yet been finalized, but only for seven of the specific programs funded by the Recovery Act. Based on U.S. Trade Representative data, those remaining contracts might total $4-billion to $5-billion worth of business, or half of 1 per cent of the total $800-billion Recovery Act budget. And there's no guarantee Canadian companies will win a dime of that business - especially since they're so late to the game. What's the cost of this one-time access to the Recovery Act's crumbs? Far too high. Through the World Trade Organization system, Canada opens up access to public purchasing in all provinces, and all cities with more than 50,000 inhabitants. Where the Buy American exemption is time-limited, Canada's offer is mostly permanent. Our provincial and municipal procurement is worth tens of billions of dollars every year - and this is the first time these immense purchases will be subject to the provisions of international trade law. Worse yet, we're doing this right when many struggling Canadian manufacturers - from public transit to pharmaceuticals to windmills - could benefit mightily from the strategic leveraging of a home-field advantage. Perhaps the greatest irony is that the real macroeconomic impact of President Barack Obama's Buy American preferences on our actual exports has never been demonstrated. Canada's sales to Americans have been hammered, but by the recession, not by protectionism. Most recent statistics (covering the first 11 months of 2009) indicate that total Canadian exports to the United States declined by 30 per cent from the same period in 2008. Consumer industries (such as auto, where exports fell 32 per cent) led the decline, as Americans endured their worst downturn since the 1930s. Curiously, many industries that depend on public works spending (and hence should have been most vulnerable to Buy American) actually experienced stronger performance than industries where government purchasing is irrelevant. For example, Canada's exports of cement and concrete, ventilation equipment, turbine and power machinery, and even plastic pipe (the stuff rabid U.S. protectionists were ripping out of the ground) all held up better last year than our overall U.S. exports. Our best hope, therefore, is to quickly get America back to work. Mr. Obama is trying to do exactly that, with government-spending injections seven times larger (proportionately) than Ottawa's. That's why the U.S. GDP grew three times faster than ours over the last half of 2009. Only that gathering U.S. recovery can resuscitate our exports, not another optics-driven trade deal. Video clips of U.S. contractors ripping up Canadian pipe sparked righteous indignation in Canada. But the impact of Buy American on our aggregate exports has been statistically invisible; for individual companies genuinely harmed, this deal won't make any difference. Yet, our politicians want to permanently tie our hands governing a major additional chunk of our economy - just so they can prove (like in 1988) they did something. Doctors take an oath to "do no harm." But, in this case, the "cure" is definitely worse than the disease. Jim Stanford is an economist with the Canadian Auto Workers union.
February 8, 2010
'Buy American' deal good: N.B. business minister
By CBC News
Business New Brunswick Minister Victor Boudreau is welcoming Canada's exemption from the protectionist "Buy American" policy that was attached to the massive U.S. stimulus package.Business New Brunswick Minister Victor Boudreau is welcoming Canada's exemption from the protectionist "Buy American" policy that was attached to the massive U.S. stimulus package. Under the agreement announced on Friday, Canadian firms can bid on American stimulus projects, and in return, the provinces agree to open their contracts to bidding from U.S. contractors. The province's business minister said he is not concerned about the potential for New Brunswick companies losing out on work here in Canada. "New Brunswick companies would be able to bid on contracts in Maine as well for example. It's to create that better level field between our two countries and the provinces and states," he said. Boudreau said he learned of the agreement on a conference call early last week with his federal and provincial counterparts. The deal will let Canadian companies bid for the remaining $75-billion worth of U.S. projects under the American stimulus program. New Brunswick is dependent on open markets to the U.S. as 90 per cent of its international exports head south of the border. Members of Congress attached the "Buy American" clause to U.S. President Barack Obama's $787-billion stimulus plan, which was passed last year. The U.S. stimulus money is allocated for roads, public housing and other infrastructure projects. Most of that funding has already been spent and the program's deadline for handing out money is Feb. 17. Lost businessSteve Ross, who operates a steel fabrication company in Halifax, said the contentious rule cost him work in the United States. "Yes, I would say there have been a number of projects that likely would have been available for us to bid, and the opportunity to do, but with the 'Buy America' clause, we never had the opportunity," Ross said. The agreement also lets companies bid across the border on municipal contracts in larger cities, such as Fredericton, Moncton and Saint John. All the provinces and territories had to agree to the deal before it could go ahead. The deal provides companies in both countries with permanent market access to projects at the sub-federal level, meaning they can bid and work on public works projects at the provincial, state or municipal The agreement applies only to U.S. funding delivered under the current stimulus program, not future legislation that might include similar "Buy American" provisions.
Steel plant recalls laid off workers LORAIN — Laid-off workers at U.S. Steel's Lorain Tubular
Operation are being called back to work, according to Don Golden, president of
United Steelworkers Local 1104.
February 8, 2010
McGuinty defends decision to help Nortel workers
By Maria Babbage, The Canadian Press-Feb. 9, 2010
OTTAWA-It's up to voters to decide whether the Ontario Liberals are trying to buy votes in an upcoming Ottawa byelection by providing an estimated $200 million to help Nortel pensioners or just doing the right thing, Premier Dalton McGuinty said Monday. "I have a tremendous amount of confidence in voters to draw whatever conclusions they feel are fair and to make their decisions accordingly," he said. His government has an "obligation" to Nortel workers who put so many years into the now insolvent company and are worried that they'll lose their retirement income because its pension plan is underfunded, McGuinty added. The move comes just a week after a March 4 byelection was called in the riding of Ottawa West-Nepean - where many of the pensioners live - and just a few days after the party's star candidate Bob Chiarelli urged the government to help Nortel retirees. Last week on the eve of a Toronto byelection, the government also promised an estimated $15 million to keep a threatened hospital from closing in the downtown riding. The Liberals ended up hanging onto the seat. Opposition critics accused McGuinty of trying to buy another byelection on the backs of seniors, but the premier brushed off suggestions that his timing was suspicious. "(The pensioners) have been asking us for an answer for a long time," said McGuinty. "Some have suggested that we should keep this a question mark until after the byelection. I think that would be unfair. I think people are entitled to know where we stand on this issue." If McGuinty really wanted to help those pensioners "out of the goodness of his heart," he would have done so eight months ago when they asked for help, not when they're about to head to the polls, said Progressive Conservative Lisa McLeod. "He played the worst kind of politics with people's lives," she said. "He strung seniors along for months who were worried about their future, all so he could give Bob Chiarelli a nice media hit in the middle of an election campaign. He put the 'buy' in byelection." But the government would have been on the hook for a much larger amount of money if it had jumped in to help Nortel pensioners a year ago, said Finance Minister Dwight Duncan. The valuation of Nortel's pension plan has changed "dramatically" over the past year, he said. "Quite a bit has changed, and we took this step as a result of a variety of those factors," he said. "We laid the groundwork for taking this step more than a year ago." It's not yet clear how much the move will cost the province, which is already grappling with an unprecedented $25-billion deficit this year alone. But a loan of about $100 million to $200 million will likely be required, Duncan said. That will ensure that there's enough money available under the Pension Benefits Guarantee Fund to help Nortel once it emerged from bankruptcy protection, he said. The fund provides Ontario's pensioners with up to $1,000 a month in the event a pension plan fails to provide its full benefit, or any at all. It is funded by corporate contributions, and the government has no legal obligation to top it up. In the past, the government has found ways to support the fund when it has been insufficient to meet demand, including when farm equipment maker Massey Ferguson and Algoma Steel filed for bankruptcy during previous recessions. But the plan is dramatically underfunded and the province has injected about $130 million since the spring to help cover some of the smaller claims. Duncan said he expects that there will be others "in the queue," but none have triggered a claim for benefits under the provincial fund. Don Sproule, president of the Nortel Retirees and Former Employees Protection Canada organization, said the move to bolster the provincial fund will affect about 8,000 pensioners and 4,500 others. "I wish we'd known this a lot earlier because it's a slow-motion train wreck waiting to happen," he said. There are about 17,500 ex-Nortel employees who are collecting pensions or have a deferred plan, Sproule said. Only those who worked in Ontario would be able to qualify for the provincial guarantee plan, which is unique in Canada although others exist in the United States and Britain. Payouts that result from a windup of the pension plan would really only benefit those pensioners earning $12,000 a year, Sproule said. Nortel's pension plan is about 30 per cent underfunded, and the guarantee fund doesn't contain enough money to cover the shortfall. If the guarantee fund kicks in, workers would get up to $1,000 a month. That means anyone earning more than $12,000 would only get 70 per cent of their pension. Many pensions are closer to $22,000 a year, so those people would see a big drop in their monthly income.
Today's Star Feb 8th
Former Nortel employee Baraba Araelien wipes her eye during a gathering in Oct. 7, 2009 at Queen's Park to protest the loss of pensions. MARK BLINCH/REUTERS FILE PHOTO 
OTTAWA–The cash-strapped Liberal government promises to top up Nortel's underfunded pension plan – a move affecting many retirees in an Ottawa riding where a key by-election is being held March 4. Opposition politicians say it's just another example of the government trying to buy votes. "This is the most callous, mean-spirited thing I've heard," said Progressive Conservative MPP Lisa MacLeod (Nepean-Carleton). While supportive of the pensioners, she said the government has known about this problem for many months but only now has come up with the funds, which could run into the millions. "To do this in the by-election, it is simply disgusting. If they really wanted to help Nortel pensioners they would have done it earlier," MacLeod said. However, Ontario Finance Minister Dwight Duncan calls that claim "nonsense." The Nortel campus is located in the riding of Ottawa-West Nepean, formerly held by Liberal MPP Jim Watson. He abandoned his seat to run for mayor of Ottawa. The Liberal candidate is former mayor of Ottawa, Bob Chiarelli. The Liberals' move during the by-election campaign is reminiscent of what happened last week in the Toronto Centre by-election, where the McGuinty government – already saddled with a $24.7 billion deficit – came up with $15 million to save the Salvation Army Grace Hospital. Duncan confirmed the province will pay into the Pension Benefits Guarantee Fund so pensioners can get up to $1,000 per month. Ontario is the only province with a pension guarantee fund. The fund, which applies only to retirees who worked in Ontario, kicks in when a pension plan fails to provide its full benefit, or any at all. It is funded by corporate contributions and the government has no legal obligation to top it up. Telecom equipment giant Nortel filed for bankruptcy protection in January 2009 after mounting losses and the prospects of continued red ink. It has since been selling off its operations and there are now nearly 17,500 retired Nortel workers at risk of losing their pensions. Don Sproule, president of The Nortel Retirees and Former Employees Protection Canada organization, said he was still waiting for government details but believes it involves winding up the plan – a move that could aid those pensioners earning $12,000 a year but would do little for those whose plan is on the higher end. Nortel must pull out of creditor protection in order for the pensioner payouts to happen. "This is still a potential claim," Duncan told the Star. The Liberals have gathered in Ottawa for a caucus retreat. "We've been setting this up for a number of months now." Duncan said he'll have more to say on the pension guarantee fund after an actuarial study on it is completed this spring. But Ontario NDP Leader Andrea Horwath says the government could have helped the pensioners a lot earlier. "The McGuinty Liberals have ignored the plight of Nortel pensioners for months," Horwath said. "The thought of losing a seat has now forced them to listen. Sadly, the only jobs they really care about are their own." Last spring, Duncan brought changes in the budget that gave the Liberals more flexibility in the pension fund so something like the Nortel top-up could happen. With files from The Canadian Press
Don't celebrate this deal
Canada has given up too much and received too
little in its negotiations over Buy American
 A large 'Buy American' sign, in support of Detroit's auto industry, is seen in the back of an auto scrap yard in Detroit.Photograph by: Rebecca Cook, Reuters, Citizen SpecialThe Buy American breakthrough announced by the Harper government yesterday is anything but. Canadian companies have secured very little new access to U.S. public infrastructure spending and at a large cost to public policy space for Canadian provinces and cities. It is an ideological rather than an economic coup for a government whose real goals are weakening public services and reducing the role of government across the country. "Buy American" policies are entrenched in U.S. history, dating back 75 years. President Barack Obama's most recent conditions, which require that the steel and other materials used in infrastructure projects funded by federal recovery money be made in the United States, are only the latest example of spending preferences that show up in highly popular state and municipal procurement rules. They are a rational, and from most accounts successful, economic development strategy that Harper would have been wise to promote in Canada if his goal truly was creating jobs and wealth. Instead, we get a blindly ideological adherence to "open markets" at all costs. Stephen Harper is trying to convince Canadians that by including the provinces in the World Trade Organization's government procurement agreement, as trade minister Peter Van Loan announced yesterday, Canadian suppliers will get sweeping new access to contracts to which they were previously excluded by these Buy American conditions. Nothing could be further from the truth. A recent Canadian Centre for Policy Alternatives report explains that this will not get Canadian businesses access to federally-funded mass transit or highway construction projects, which the U.S. has exempted from its WTO commitments. They cannot supply public utility services such as telecommunications, nor will they have access to contracts by the 13 states which have made no commitments at the WTO. Even in the 37 states that have signed on, the report states, Canadian suppliers will not be allowed to supply construction-grade steel, vehicles, coal, or printing. And municipal governments in the U.S. are exempt completely. There is no way for Obama to force U.S. states or cities to accept Canadian bids as equal to American bids even if the U.S. president wanted to. Such a move would be fought tooth and nail by U.S. Congress, which retains much more power than the Canadian Parliament over trade deals. Harper, being much more dictatorial, has instead negotiated a secret deal with the provinces and once again excluded Canadians from the debate. We should be outraged by this deal, not impressed. Of course there's the glaring problem with Harper's "breakthrough" -- that the $780 billion of U.S. stimulus cash announced by Obama in 2008 will have all been allocated in the next two weeks. We're scraping up crumbs here, and with big consequences for democratic governance. The provinces have been loath to sign the WTO's Government Procurement Agreement and did not agree to include subnational procurement in NAFTA because they could lose too much say in how public money is spent without getting any new access to the U.S. market. So why have they agreed now? And what is Harper playing at with this lopsided agreement? We believe the Buy American controversy provided Harper and the provinces, who are actively engaged in ambitious free-trade talks with Europe, with an opportunity to restructure the Canadian economy to reduce the role of our communities in setting spending priorities. Subnational procurement -- public spending by our local governments and their utilities -- represents up to $200 billion in Canada. Much of that goes toward services delivered publicly, such as water and electricity. Ceding control over how our governments spend public money makes it all the easier for companies to push privatization. This deal is not a breakthrough, just another assault on democracy by the Harper government. Maude Barlow is national chairwoman and Stuart Trew is a trade campaigner with the Council of Canadians.
© Copyright (c) The Ottawa Citizen
 A large 'Buy American' sign, in support of Detroit's auto industry, is seen in the back of an auto scrap yard in Detroit.Photograph by: Rebecca Cook, Reuters, Citizen Special
February 5, 2010
'Buy American' deal exempts Canadian firms
By CBC News
Canadian companies will be exempt from a protectionist "Buy American" clause in the U.S. government's $787-billion US economic stimulus package, the federal government has announced.Canadian companies will be exempt from a protectionist "Buy American" clause in the U.S. government's $787-billion US economic stimulus package, the federal government announced Friday. The deal involves 37 U.S. states that adhere to the World Trade Organization's government procurement agreement, effectively ending a dispute that has raged since Congress passed the protectionist measures in 2009. "Our government had serious concerns about the 'Buy American' provisions contained in the American Recovery and Reinvestment Act," International Trade Minister Peter Van Loan told reporters in Ottawa. "We believe that a co-ordinated approach to job creation and economic recovery was essential for both countries," said Van Loan. Speaking shortly after details of the deal were announced, Liberal trade critic Scott Brison slammed it as "too little, too late" as much of the stimulus funds made available by the Obama administration have already been spent. The U.S. stimulus money is allocated for roads, public housing and other infrastructure projects, the drawback being that most of the funding has already been spent. The program's deadline for handing out funding is Feb. 17. "This deal is a pathetic attempt to try to create some level of symbolic victory when, in fact, a real deal was required to defend Canadian interests," Brison told reporters in Ottawa. "There is absolutely no reason the government couldn't have concluded this deal last March." Access to sub-federal projectsThe deal provides companies in both countries with permanent market access to projects at the sub-federal level, meaning they can bid and work on public works projects at the provincial, state or municipal level. The agreement applies only to U.S. funding delivered under the current stimulus program, not future legislation that might include similar "Buy American" provisions. International Trade Minister Peter Van Loan did not say how much the deal would be worth to Canadian companies, calling any estimate "highly speculative." "We could only guess at how much value Canadians would have gotten out of [the stimulus] contracts," said Van Loan. In the future, the deal will bring "significant opportunities" for Canadians, he said.
The "Buy American" provision gives priority to U.S. iron, steel and other manufactured goods for use in state-level and municipal public works and building projects funded with stimulus tax revenue. In October, reports of progress between the U.S and Canada over the controversial provision prompted the Federation of Canadian Municipalities to withdraw a resolution to block U.S. companies from bidding on city contracts in this country. 'It's going to be good': mayorThe deal was made with the support of the provinces, territories and industrial associations, said Van Loan. But it also has the support of some municipal leaders. "It sure is a sweet victory," said Victor Fedeli, the mayor of North Bay, Ont. "We have companies that make everything from sandbags and tarps to municipal engineering to huge bridges that you find all over the United States," said Fedeli. "And these companies now have their door open again." Asked whether he worried the deal could also mean large American companies winning contracts in North Bay that might otherwise have gone to his own constituents, Fedeli said the city was "already a community with open doors." "We bought two fire trucks in South Dakota for $850,000," he said. "They had to compete against the Canadian firms, and while we certainly want to buy Canadian, that is not the best value for taxpayers. "The Canadian companies needed to sharpen their pencil, and if a company can make a water reservoir in Illinois and ship it to North Bay and install it for $1 million, I would hope someone in Ontario would have a sharper pencil," he said. "I think it's going to be good."
Date: Nov 2, 2009 11:28 AM
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