Stelco and Bedrock deal leaves pensioners unsure about the future

[projekktor id=’26396′]

A proposed deal to sell Stelco to Bedrock Industries is facing local opposition. The union representing Hamilton Steelworkers is saying the deal is too “lean”. The local 1005 says they’re not opposed to Bedrock buying Stelco, they just want more money going into the pension deficit than what’s being promised.

Roughly 540 people currently work at Stelco which was once the largest steel maker in the country. Stelco, recently renamed by its current owner US Steel Canada, is looking to restructure after a deal with Bedrock Industries but the sale needs court approval.

Experts say the proposed sale satisfies two major creditors: US Steel in the States, and the Provincial Government.

While Bedrock has promised to keep retiree pensions and post retirement benefits, the president of the union representing steel workers doesn’t like the deal. There are currently 14,000 Stelco pensioners and 800 million is owed to the pension plan. Bedrock hasn’t agreed to cover that whole amount, or even pay it off over time.