Union did not protest Essar's skipped payment to pension plan

The president of a USW local says he continues to be concerned about the level of pension plan funding as Essar Steel Algoma will not be making a scheduled November payment.

On Friday a judge ordered payment of the November Special Payment be suspended for the duration of the Stay Period — ending January 16, 2016, says Brenda Stenta, corporate communications for Essar Steel Algoma.

If not for the order, that Special Payment would have been due today.

Mike Da Prat, president of USW Local 2251, said the order will not immediately affect individual pension payments, but affects the fund as a whole.

“The level of funding — we’re concerned about it all the time. The special payments were negotiated to correct the underfunding and the correction is not going to occur. Are we concerned? Yes,” said Da Prat.

Although concerned, Da Prat said the local did not contest the order.

“Because of [everything] happening so fast, everybody needed time to prepare their case,” said Da Prat.

He said the local is meeting with their legal team Wednesday and with Essar Steel Algoma on Thursday.

He doesn’t expect the matter will be resolved any time soon.

“Whatever happens is going to happen on an on-going basis,” said Da Prat.

The Special Payments were ordered as result of regulations the Ontario Government passed in 2013 to top up the underfunded pension plans.

Stenta said the status of ongoing Special Payments will be dealt with at a future date, yet to be determined.

(FILE PHOTO: Kenneth Armstong/SooToday)