Foreign Investment

Friday October 9, 2015

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Friday October 9, 2015 Decision on U.S. Steel Canada benefit, tax cuts Friday The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations. Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week. Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions. A lawyer for the steelmaker reiterated the company's position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement. Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said. He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere Ñ making the pension benefit hit unnecessary Ñ and that the company's grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations. United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said "a near-term cessation of operations will be necessary" if the company plan isn't accepted. (Source: Hamilton Spectator) http://www.thespec.com/news-story/5951456-decision-on-u-s-steel-canada-benefit-tax-cuts-friday/ Hamilton, U.S. Steel, Trade, Foreign Investment, subsidies, bailout, St

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Friday October 9, 2015

Decision on U.S. Steel Canada benefit, tax cuts Friday

The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday September 26, 2015 Dispute over U.S. Steel Canada restructuring sent to mediation The dispute between United States Steel Corp. and its stakeholders over the future of U.S. Steel Canada Inc., has been sent to mediation by the Ontario Superior Court judge overseeing the Canadian unitÕs restructuring. The issues in dispute between the United Steelworkers union, the Ontario government, salaried active and retired employees, and a former president of its predecessor company Stelco Inc. on one side and U.S. Steel on the other, will be examined by former Ontario Superior Court associate chief justice Douglas Cunningham in a three-day session scheduled to begin next week. ÒThe mediation shall address the feasibility of a comprehensive agreement among the parties,Ó Justice Herman Wilton-Siegel said in an order. The mediation will also address a business plan for the Canadian unit, its potential sale, the shift of production of high value-added steel to the United States and U.S. SteelÕs claim of more than $2-billion against the Canadian unit. U.S. Steel Canada has been operating under the CompaniesÕ Creditors Arrangement Act since last September, but the announcement by its parent company that it plans to shift production of about 180,000 tons of high-quality steel annually out of its Canadian operations has sparked an imminent crisis in the restructuring. Shifting production would diminish the value of the Canadian assets in the eyes of potential buyers, steel industry sources said. U.S. Steel has started a sales process that has led to a bid by one competitor Ð Essar Steel Algoma Inc., which is based in Sault Ste. Marie, Ont., but has the backing of a deep-pocketed parent company in India. Potential buyers also need to wonder whether other steel-making contracts will be shifted out of Canada, leaving the Canadian operations to depend entirely on the spot steel market. Stakeholders have quest

Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week.

Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions.

A lawyer for the steelmaker reiterated the company’s position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday October 10, 2015 Dairy farmers protest upcoming trade deal Dairy farmers parked tractors at the foot of Parliament Hill, walked cows through downtown Ottawa and dumped milk on the pavement Tuesday to protest what they say is a looming trade deal that threatens their way of life. Farmers in Ontario and Quebec fear that the Trans-Pacific Partnership, a massive 12-country trade deal thatÕs said to be near an agreement in principle, could spell the end of the supply management system that keeps their operations profitable. Dozens of tractors clogged Wellington Street in front of the Parliament Buildings, snarling traffic, while some farmers led cows down the street and others splashed milk on the pavement. Negotiations are currently underway on the ambitious trade deal involving Canada and 11 other countries. Sources say an agreement in principle could be announced as early as Friday. Farmers fear the federal government will make concessions on supply management, a system of production limits and import tariffs that shields the dairy market from competition at the hands of foreign producers. The U.S. has been pushing for Canada to loosen its system, but the federal government says the government will protect Canadian interests at the negotiating table. ÒThis government remains absolutely committed to making sure we preserve our system of supply management through trade negotiations,Ó Conservative Leader Stephen Harper said Tuesday. Opposition parties remain concerned about how the system could be affected in TPP talks. The NDPÕs Mathieu Ravignat, who is running for re-election in the Quebec riding of Pontiac, said supply management allows for many small farms to exist in Quebec and across Canada. (Source: National Post) Canada, United States, USA, trade, dairy, farmers, agriculture, Trans Pacific Partnership, TPP, globalization, cow

Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said.

He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere — making the pension benefit hit unnecessary — and that the company’s grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations.

United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said “a near-term cessation of operations will be necessary” if the company plan isn’t accepted. (Source: Hamilton Spectator)