[RaginRonic]

http://www.thespec.com/news-story/73...greement-vote/

Stelco: 1005 says yes in historic collective agreement vote


United Steelworkers Local 1005 has a new collective agreement with Stelco's owner-in-waiting Bedrock Industries, clearing the last major obstacle in a mega-restructuring deal to lift the steelmaker out of creditor protection.

With workers voting nearly 64% in favour of the new contract tonight, Stelco representatives will now present the takeover plan to Justice Herman Wilton-Siegel at a "Sanction Hearing" Friday at which the judge is expected to approve the plan.

The contract vote Tuesday follows ratification votes for Lake Erie Works Locals 8782 (a) and 8782 (b) last Friday and acceptance of the restructuring plan by all stakeholders in the court-supervised process under Companies' Creditors Arrangement Act (CCAA).

After the court "sanctions" the deal, people contesting or having claims will have 21 days to apply to the court. If no substantial issue arises, Bedrock will become the new owner of Stelco operations in Hamilton and Nanticoke on June 30.

The bargaining committee did not make a recommendation to the 500 person bargaining unit about whether or not to accept the offer and union officials declined to comment on the results Tuesday night.

McMaster University business professor Marvin Ryder said,"It's not utopia for the union members. But it was the best deal on the table."

He noted the workers in Hamilton will receive cost of living increases, and "there is a way forward" when it comes to gathering funds to pay for pensions and benefits for pensioners.

Hamilton Mayor Fred Eisenberger says he supports the Bedrock takeover but feels the city was unduly left out of the negotiations.

"We want Bedrock to begin operating," he said. "We are not going to try to thwart the proceedings in any way shape or form we want the (restructuring) to close."

One of the key features of the deal is the creation of a land trust, called Landco, for the steelmaker's 818-acre harbourfront property with environmental liability being backstopped by the province. Stelco would then lease a third of the property for its operations leaving the rest to be remediated for future development.

Bedrock will put $80 million towards the remediation.

Details about who would sit on the board that oversees Landco still has to be worked out but a source within the province's finance ministry says they are looking for people with financial expertise rather than people to represent various interests.

Eisenberger wrote a letter to Premier Kathleen Wynne last month about fears the land would be sold in a "fire sale" fashion, undermining its future potential. Under the original terms of the deal, the vacated land would be fixed up and sold or leased within five years.

The province has since lifted the time constraint.

However, the city is still looking for assurances that it will be involved in the future development of the lands.

"We want to step up the dialogue with the province and ultimately the federal government about next steps to make this best possible outcome for all concerned," said Eisenberger.

The provincial source said leaving the city out of the negotiations up till now was seen as the best way to get a deal. Once that is formalized by the court, there will be all kinds of opportunity for discussion about future use of the lands.