U.S. Steel employee funding

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U.S. Steel pensioners will have medical coverage at the beginning of next year. The courts have approved a three million dollar transition fund from the Province.

The union says the medical coverage will last five or six weeks. Two and a half million for prescriptions and another half million for other necessary medical expenses.

Wednesday’s court decision means retirees will have limited drug coverage starting January 1st, up to a 30 day supply of medication.

A bankruptcy court monitor will determine an individual’s economic hardship before any other medical benefits are paid.

But those benefits aren’t expected to last beyond a month or so.

The Steelworkers Union is expecting five thousand members to rally on January 30th in front of Hamilton City Hall.

U.S. Steel is due back in court in the middle of January, to deal with the claims it is owed 2.2 billion dollars by the former steelmaker owner, Stelco.

The union sent a letter to Ontario Economic Development Minister, Brad Duguid, Wednesday, requesting a meeting to discuss the crisis in the steel industry.

The union blames low cost imported steel and declining oil prices, which hurt the demand for steel pipes but it says it has a plan to help the industry restructure.

The union says some members are concerned about their pensions but so far pensions are not affected.

As long as those funds are still in place those cheques will keep arriving as always. It will all depend on how the bankruptcy process evolves.