Essar Steel Algoma granted temporary pension relief
Friday, January 11, 2013 by: SooToday.com Staff
NEWS RELEASE
ESSAR STEEL ALGOMA
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Essar Steel Algoma granted temporary pension relief
SAULT STE. MARIE - Essar Steel Algoma Inc. announced today the Ontario Government has granted the Company temporary pension relief in the form of a twelve month deferral of special pension payments effective December 2012 through to November 2013.
The Company will continue to pay ongoing pension service costs for its defined benefit pension plans.
Historically low interest rates have led many of Ontario’s defined-benefit pension plans, both public and private, to seek temporary relief measures.
As a result of such low rates, Essar Steel Algoma's pension contribution requirements were more than double those made in previous years.
This combined with a decline in steel prices, increased borrowing costs in the wake of the Ontario Court of Appeal decision in Re Indalex, and one-time operational issues led Essar to seek temporary relief to address near-term liquidity needs.
Essar Steel Algoma CEO Kalyan Ghosh commented: “This temporary relief, in combination with continued cost-cutting, operational improvements, improving industry fundamentals and lower raw material costs will enable Essar Steel Algoma to manage its liquidity through this difficult cycle. In the coming months Essar will meet with its unions, pensioners and other pension stakeholders to explore a medium-term pension funding strategy.”
Essar Steel Algoma greatly appreciates the work of David Orazietti, MPP who ensured the success of this important relief measure.
He worked tirelessly with the Ontario Government to secure this vital relief during challenging financial times.
This temporary assistance provides the time and financial capacity necessary for Essar to put in place a more comprehensive plan to satisfy its pension obligations for the long-term
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bounder 1/11/2013 4:12:08 PM ReportI've heard this type of camoflage before,beware,the fox is hungry.
shju 1/11/2013 4:13:01 PM ReportMaybe with all the extra money they will have they can invest in some machinery from the 2000's. Would be a nice change to have something that's not from world war 2.
jonzer12 1/11/2013 4:17:38 PM ReportAsk St. Mary's paper employees how this worked out for them...
steelworker 1/11/2013 4:28:36 PM ReportMaybe Tony Martin will help us fill out our E.I. forms.
I'm In 1/11/2013 5:19:28 PM ReportTony has 2 pension one from the Federal and one from the Provincial governments and didn't even have to apply for EI, but get ready ESSAR doesn't even pay its bills so next are the employees, they work for free in India.
Das_Boobie 1/11/2013 6:43:18 PM Reportmaybe the retirees should protest... block a highway or something... lol
Koolaid 1/11/2013 6:57:39 PM Reportpfffft who cares
Beej 1/11/2013 7:13:26 PM ReportWhatever it is that they have up their sleeve you can be damn sure it won't be a positive thing for the pensioners or the city.
kodak11 1/11/2013 7:14:07 PM Report Never mind the paper mill we've been through this twice in the last 23 years we know whats comming next.
I'm In 1/11/2013 8:03:22 PM ReportDas_Boobie, I agree but will they
mpa 1/11/2013 8:18:39 PM ReportWell boys get ready for this years contract. This year 2251 and next year 2724, we are gong to loose huge. Everything our fore fathers fought for will be lost.
They are not paying any vendors and they dont intend to, now its our turn.
Be prepared to give up $5 - $8 / hour, we will all go back to 2 weeks vacation and kiss your pension goodbye, the union will be busted and we will be working 60 hrs / week.
Sad to say but our government is selling us down the river?
Wondering how many voted PC or Liberal?? NDP is the way to go
Coo1 1/11/2013 8:21:31 PM Report...considering how much people get paid in the plant... WHO CARES!
Maybe if the ones who sleep on the job actually did their work, then this sort of thing wouldn't happen. There is A LOT of money wasted in the plant on people who are there just to rip off the company.
Get rid of the slackers that the union has to protect and employ people with good work ethic that want to work.
mpa 1/11/2013 8:34:54 PM ReportCool.
There are alot of good workers in the plant.
Sorry to say, if the plant looses , so does evetyone else. If they can take away from us, it will be only a matter of time before they take from you. Look at what Harper has been taking from us
Coo1 1/11/2013 8:53:08 PM ReportNO question that Harper is a dough-ball. And yes A lot of good hard working people are there, my spouse included. However, for every lets say, 20 good workers there are, at least one or two in that department could do to be let go, only they can't because they are too well protected by the union. Its both a good and bad thing this union however there needs to be a line drawn that fits today's markets better. If things continue the way they are, which seems more greedy than logical, then not only will a few have no jobs but everyone in that plant will have no jobs. We all have to move with the market otherwise it is unsustainable. Better to take a wage reduction or in this case a temporary pension relief if it allows for the plant to continue operating and employing people in the Sault.
I do not, however, agree with ANY company taking from those who are already retired and have paid into their pensions and are due what they have earned and worked hard for.
Hatch 1/11/2013 9:38:05 PM ReportCoo1 says
"Get rid of the slackers that the union has to protect and employ people with good work ethic that want to work"
They tried to do that but the younger employees are the ones getting fired or trying for the "Comp For Life" program.
Next..............
Hatch 1/11/2013 9:46:39 PM ReportCool 1
The biggest problem is the lack of balance between HR and the union. HR is now a department of general knowledge personal while the union has people with specific knowledge in many areas. This gives the union the edge in battles where the employee/s should be fired. I totally agree with your numbers in your post above. Sad part is the two entities are like lawyers whereas their only focus is to win and not to do what's right. There have been battles where the union won and I was happy to see someone hold their job but there have been some where I had hoped they would lose so we could lose the dead weight.
good4now 1/11/2013 10:51:35 PM ReportWhy Not Pay At Least Half?
If required contributions are double last year's, they should have paid at least the same as last year.
The wording of the press release could mean that, )as the amount of relief is not stated) but I wouldn't take bets on it.---------------
"Essar Steel Algoma Inc. announced today the Ontario Government has granted the Company temporary pension relief in the form of a twelve month deferral of special pension payments effective December 2012 through to November 2013.
... Essar Steel Algoma's pension contribution requirements were more than double those made in previous years."
tcowen 1/11/2013 11:42:29 PM ReportThey want those pensions so bad they can taste it.. & they don't care who they have to trample over to get it.
The sad part is that our own government has already started to facilitate it.
We were warned that this was coming.
An 'Age friendly community' has no need for a steel plant or any other industry for that matter..
A socialist's wet-dream.. Retirement communities rely totally on 'good-news' stories & government subsidies.. maybe an occasional full page poster of a questionably elected dream-team cutting pretty little ribbons on Sundays.
Don't forget to vote..
Pete B 1/12/2013 8:02:32 AM ReportMPA
Are you worried you might have to earn your pay cheque?? I hauled steel out of the mill for many years, I stopped to haul a different commodity cause I was tired of the lazy dont care over paid attitude of the majority of PM and CM employees. 75% of these men and woman would not make it in a non union job! I know there are some good workers in the mills but after time they get worn down to the lazy ways of the older workers aswell. I know I could never work at essar algoma myself cause I have a get it done attitude that would not be welcomed by the older workers.
And they dont work for free at the mill in haziera Gujarat. India. They work for a fair wage for the current Indian economy. Maybe essar algoma employees could do the same?
Slim Shady 1/12/2013 10:13:42 AM ReportTo all those commenters (aka keyboard warriors) who come to the conclusion that "who cares, they are lazy and overpaid anyway" some comments:
My job in the plant involves working with all parts of the plant on a daily basis - one end to the other. I've been in just about every sh#$ ho^& in the place. There are a lot of good people and bad people in any company. There are a lot of hard working employees who do care about both the company and our community.
Algoma Steel built this City and continues to be a key economic contributor. If it suffers it impacts us all.
Essar Steel Algoma supports countless local businesses. True they are in a financial crunch right now. Vendors are getting paid but it is at an unacceptable 90-120 days. (After 2008 Recession they made their terms Net60).
Many critic refer to cases of lazy people practices of yester year. They are way less now. Some of you are plan jealous that you aren't working there?! Or perhaps you don't have a Trade ticket or a University Education? Not everyone is general Labour as you are inferring...
The plant has had personnel reduction via attrition. There really is not enough people to run the place.
I think it is wrong to delay payments into the pension plan - it is already underfunded from 2001 where they dipped (or more properly put - STOLE) from the pension plan. A temporary reduction maybe okay until the order book picks up, however they should be forced to double-down in payback times.
judoka 1/13/2013 1:11:43 AM Report I have been told that the contract is up this year? If this is the case, I dont think im the only one that has heard rumors about changes they want to make ??
jojo12345 1/13/2013 2:05:17 AM Reportthis place is ready to shut down
they took the cream now they will leave and leave the crumb for the Sault
each Business they buy close down
restaurant motel everything they touch close
Sault get ready to loose your job
stiJJy 1/13/2013 3:31:51 PM Report"They work for a fair wage for the current Indian economy. Maybe essar algoma employees could do the same?"
The tradespeople actually make less than the average wage on the outside. It's the production workers that are way overpaid. That's what you get with a production union, though.
jojo12345 1/14/2013 12:41:24 AM Reportthey should return in their own country
Algomasteammaker 1/14/2013 11:38:58 AM ReportOne more reason to "Pay Yourself First" every pay and invest in your own pension...why trust a company to take care of you in retirement when they are always looking for way's to take from you when your working for them???
thesharr 1/14/2013 2:53:12 PM Reportstijjy:production people are overpaid,you must be a tradesperson.If you had a plumber,hvac,electrician on stand by in your business incase something breaks how could you afford to run your business,not very long.Tradespeople are very important in a old steel mill,you just can't afford to have a large group on standby.Production people are on the job 24/7 puting out the tons of coils and plate.You can't pick up the phone and call an outside company for a hotmill roller,slabcast tech,or thincast tech,but millright,ellectrician(service departments)you can.You want the big bucks get off butt and apply for production positions and stop wining.The closer you work to molten steel the more money you make.
stiJJy 1/17/2013 9:25:03 PM ReportTypical.
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