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USW balks at Essar Global’s elimination as U.S. Steel Canada buyer
By Caroline Salls
Pittsburgh, June 27 – The United Steelworkers (USW) condemned a decision to eliminate Essar Global as a potential buyer of U.S. Steel Canada operations in Hamilton and Nanticoke, according to a USW news release.
The U.S. Steel Canada board of directors has reportedly rejected Essar Global as a bidder for the company, USW said.
The union said the decision follows a ruling last month by an Ontario Superior Court judge that disqualified Essar Global as a bidder in the sales process for Essar Steel Algoma. Essar Global’s plans called for buying and operating the steel plants in Sault Ste. Marie, Hamilton and Nanticoke.
As previously reported, KPS Capital Partners Inc., has been identified as the preferred bidder for Essar Steel Algoma’s operations in Sault Ste. Marie. KPS says it also wants to merge Essar Algoma and U.S. Steel Canada’s operations into a single company.
“Essar Global has indicated it is more committed than other bidders to protect jobs, pensions and retiree benefits,” USW Ontario director Marty Warren said in the release.
“We’re calling on the provincial government to intervene immediately and to use every means at its disposal to stand up for the best interests of our working families, pensioners and communities.”
The USW said KPS does not appear to be prepared to protect jobs, pensions and retiree benefits.
“Essar Global has put forward a plan that is more aligned with the real needs of our members and our communities – jobs, pensions and retiree benefits,” Bill Ferguson, president of USW Local 8782 in Nanticoke, said in the release.
Essar Steel Algoma is based in Sault Ste. Marie, Ont., and manufactures hot and cold rolled steel products. The company filed for bankruptcy on Nov. 9, 2015 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 case number 15-12271.
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