What the Steelworkers want from today's federal budget

UNITED STEELWORKERS OF AMERICA NEWS RELEASE

********************* Budget should address bankruptcy protection for workers, say Steelworkers

TORONTO - United Steelworkers' National Director Ken Neumann says Wednesday's federal budget should address comprehensive initiatives to protect workers facing job losses as well as the loss of wages, pension, severance and other monies owed to them when a company either goes bankrupt or faces restructuring under bankruptcy protection law.

"Every week dozens of companies declare bankruptcy and close down," said Neumann. "They number in the thousands, affecting tens of thousands of workers. In addition to wages, severance and vacation pay, in many cases of bankruptcy the pension plan is not fully funded and workers and retirees face cutbacks in their pensions. Group insurance benefits are lost as well."

Neumann said federal initiative must not be done in a piecemeal fashion, for example addressing lost wages only.

Steps must include changes to legislation governing bankruptcy and bankruptcy protection, to put workers first on the list to recover their lost wages and pensions from the assets of a bankrupt employer, rather than the last, which is currently the case.

"The banks have multiple interests," said Neumann. "A worker has one job and one pension, the continuation of which is fundamentally important to having any kind of a future. The current situation leaves working Canadians terribly vulnerable.

"Meanwhile, the banks keep on raking in profits and getting to the front of the line to suck up whatever is left of a bankrupt company. This imbalance must be corrected."

There is now a private member's bill before the House of Commons, put forward by the NDP's Pat Martin (Winnipeg Centre).

Neumann has already met with Liberal Cabinet Ministers, urging their support.

As well, a Steelworker lobbying team of rank-and-file activists has been on Parliament Hill talking to MPs about the need to put workers first.

"Our government and laws should exist to protect ordinary people not just property and the rich," said Neumann. "It doesn't have to be a big item in the budget, but it will take guts on the part of government to move forward. We hope they have what it takes to represent Canadian workers fairly."

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