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Published on 6/2/2016 in the Prospect News Distressed Debt Daily.

Details on U.S. Steel agreement demanded by union, Parliament member

By Caroline Salls

Pittsburgh, June 2 – The United Steelworkers said details of a 2011 deal that ended a lawsuit over U.S. Steel’s failure to fulfill the terms of a 2007 deal that allowed the takeover of the former Stelco in 2007 must be released.

United Steelworkers Ontario/Atlantic director Marty Warren said in a news release that Canadian Parliament member Scott Duvall made a demand in the House of Commons on Thursday that “must be acted on if the federal government has any intention at all of saving Canada’s steel industry.”

“Duvall has repeated our sustained call for a release of details on the secret deal signed by the previous government with U.S. Steel in 2011,” Warren said in the release.

“Workers and retirees are on the front line and have the most to lose if this vital piece of the puzzle is missing. Our union is involved as much as any other stakeholder. Our status must be respected if there are discussions around potential buyers.”

According to the release, the union and the City of Hamilton, Ont., filed another motion to the Ontario Court of Appeal for release of details “that give U.S. Steel and its parent company priority over every other party involved in discussions around restructuring.”

Hamilton, Ont.-based U.S. Steel Canada’s operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, a cokemaking and finishing facility.


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