Statement from Finance Minister Charles Sousa on Court's Approval of Stelco Restructuring Plan
Charles Sousa, Minister of Finance, issued the following statement on the court's approval of the plan for Bedrock Industries Group LLC (Bedrock) to purchase and restructure Stelco (the operating name of U.S. Steel Canada Inc. effective December 2, 2016).
"Ontario welcomes news that the court has approved Bedrock's plan for restructuring Stelco. I applaud all parties involved in the process for their hard work and determination to find a solution that will protect jobs, pensions, benefits and the environment. In particular, I want to thank Bedrock Industries Group, Stelco's Chief Restructuring Officer Bill Aziz, the Court Appointed Monitor, Ernst & Young, United Steelworkers Locals 1005 and 8782, and representatives of salaried employees. I also want to thank the province's Business Advisor Ed Clark who facilitated the negotiations on our side and the City of Hamilton who played an important role in supporting a constructive outcome.
With this step, we are nearing the positive resolution of this longstanding process - one that will see Stelco continue to operate a commercially competitive steelworks, providing jobs and growth for the future.
This plan means that Stelco operations at the Hamilton and Lake Erie facilities would continue, saving approximately 2,200 well-paying jobs. It would protect retirees by allowing pensions to continue without interruptions or reductions and provides greater certainty that retirees will receive other post-employment benefits (OPEBs), such as dental benefits, prescriptions, and life insurance. The agreement also includes measures to protect the environment.
With necessary support from creditors, employees and the court now in place, the province will continue to work with Bedrock and other stakeholders towards finalizing the restructuring."