Canadian court approves US Steel plan to separate Canadian unit

The most significant issue is whether U.S. Steel intentionally created the very conditions that led to the bankruptcy of the Canadian operation.

United Steelworkers Local 8782 president Bill Ferguson said, “it’s a mess all around”.

“There was never a division between the two of them”.

Ontario finance minister Charles Sousa says the transition U.S. Steel Canada is undergoing is having a tremendous impact on retirees and families who rely heavily on health benefits provided by the company. The company will accept receipts – dated up to then – until the end of the month.

The payments expected to be suspended in 2016 would cost U.S. Steel roughly $100 million. The company now owes its final 2015 instalment of $1,447, 277.24 (of which approximately $340,000 is education taxes). The stock had lost more than half its value this year. A full decision, and the reasons behind it will come on Tuesday.

The Ontario Superior Court has approved a United States Steel Corp. plan to cut loose its Canadian unit, effectively ending an eight-year odyssey that included losses that ran into the billions of dollars, battles with governments, and acrimonious disputes between the Pittsburgh-based giant and its unionized Canadian employees.

According to the agreement, the Canadian unit could enter a new sale or restructuring process. An effort to sell the company earlier this year failed.

The ruling is also expected to halt post-employment benefit payments to retirees, and contributions to the pension plan, which now sports a current deficit of more than $800 million. “It’s time for this government to step up – before this election – and help us save and rebuild this industry”, Ferguson said. But younger workers have been left to pay the costs themselves or find insurance coverage elsewhere. So he believes the city might be able to recoup the money at a later date.

Eisenberger said he is hopeful about one thing.