A controversial shroud around a secret deal between U.S. Steel and the federal government could be torn aside in a week.
That's when a Superior Court judge hopes to rule on a motion by steelworkers, pensioners and the City of Hamilton seeking access to the details of the pact the company struck in 2011 to get the federal government to drop its lawsuit over broken production and employment promises.
What's in that deal — for example, whether the government dropped a strong case in exchange for firm promises for employment in Canada — has never been made public beyond general statements about more capital investment and small grants to community agencies.
With U.S. Steel Canada under creditor protection and looking for potential buyers for its Hamilton and Nanticoke plants, workers and others argue they need to know the details of the deal to adequately defend their rights.
"Right now U.S. Steel and the government are hiding whatever they can, they're not giving full disclosure on anything," said Bill Ferguson, president of USW Local 8782 in Nanticoke.
The motion put before Justice Herman Wilton-Siegel Monday called for the release of all the promises U.S. Steel made to Canada in exchange for the government ending its legal action. Those promises, the motion argued, constitute financial obligation for the company — obligations pensioners and others need to know if they are to negotiate fair settlements to their claims.
Lawyer Ken Rosenberg, acting for the United Steelworkers, argued in court that with Pittsburgh-based U.S. Steel expected to make a bid for at least part of its troubled Canadian arm, other potential bidders and workers deserve access to all the information.
"This is all about Fairness 101," he said. "How can they know these details and we not?"
When U.S. Steel purchased Stelco in 2007, it made a package of promises to the federal government about employment, production and pension security. Barely a year later it had slashed employment and reduced production in Hamilton and Nanticoke. The federal Industry Department sued in 2009 to enforce the original promises and then suddenly dropped the suit in 2011 for a package of new commitments that have never been made public.
Retirees want to know if their pension rights were compromised, laid off workers want to know if the deal leaves them any hope of recall and the city wants to know if its tax and water revenues from the company are threatened. The city is also interested in the future of U.S. Steel's 330 hectares of industrial land on the bayfront.
Michael Kovacevic, acting for the city, said the Investment Canada Act protects sensitive commercial information such as costs of production from disclosure, but argued the facts workers and the city want don't come under that definition.
"Nothing like that is before you," he told the judge. Courts make decisions based on evidence, not opinions and there is no evidence here."
They also questioned the government's role in this motion, noting the law gives U.S. Steel sole control over the decision to release the agreement.
Lawyers for the federal attorney general argued everything in the settlement agreement is protected from public disclosure by terms of the Investment Canada Act which seek to ensure foreign companies can speak to Ottawa in confidence about potential investments.
John Syme, acting for the federal government, said the act specifically protects "information" about a potential investment, and that includes any promises a company makes to the government. He also argued the protection is absolute.
Source: thespe
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