Ottawa backs Lakeside in Stelco fight
Will to grant firm, steelworkers limited status
August 31, 2009
Naomi Powell
Hamilton Spectator
http://www.thespec.com/News/BreakingNews/article/626421
A bid by Lakeside Steel and the steelworkers union for intervenor status in the federal hearing into the shutdown of Stelco has won limited support from Ottawa.
The Federal Court is hearing requests from the two to intervene in the Canadian government's court battle with U.S. Steel over the layoff of hundreds of workers this year.
Canadian Industry Minister Tony Clement has asked the court to force the American company to live up to job commitments it made two years ago to get government approval for its $1 billion takeover of Stelco.
The government says the involvement of the two is "appropriate" provided it is restricted to matters related to the punishment sought in the hearing.
U.S. Steel opposes the requests for intervenor status, arguing they are motivated by private economic interest.
Ottawa is seeking an order that U.S. Steel live up to its production and employment commitments or face a penalty of $10,000 a day.
Lakeside Steel has said it hopes to intervene in the court case and take over U.S. Steel's Canadian operations, which include facilities in Hamilton and Nanticoke.
Lakeside says its intervention would be in the public interest, as the temporary closure of most of U.S. Steel's Canadian operations has affected its customers and the steel market as a whole.
It would be "very difficult" to control the hearings in a timely manner, said U.S. Steel lawyer Michael Barrack. If Lakeside is allowed to intervene based on its relationship as a customer, there is nothing to stop dozens of other customers seeking the same status, he said.
"It would be open season," said Barrack.
The United Steelworkers union says it should have a voice in the court proceedings because its members are the people who have been directly affected by the shutdown of the U.S. Steel's Canadian operations.
The Pittsburgh company shut the its Ontario operations this spring, with the loss of 1,500 jobs, amid a major downturn in the auto industry and other sectors that use steel produced at the plants.