U.S. Steel Canada., June 30, 2017
June 30, 2017
UPDATE: Bedrock Transaction closes June 30, 2017
The transaction with Bedrock Industries LLC (“Bedrock) closed today, June 30, 2017. As of today, Stelco will be owned and operated by Bedrock.
While there are a number of post-closing items to finalize, the non-USW Retirees will:
(a) see no change to the registered pension plans, which will continue to be paid at this time without reduction; and
(b) OPEBs which have been suspended will resume at a reduced level (with the exception of group life insurance which will be terminated August 31, 2017).
Further details of the transaction will be provided to you in the coming weeks in a mailing to members as well as at a meeting being held at the Hamilton Convention Centre on July 12, 2017 at 7 pm. Further information regarding the meeting is available in the Notice we sent to members which can be viewed here.
Active salaried employees will also not see any changes to their benefits at closing. Further information for actives is contained in an FAQ we prepared which can be accessed here.
Please continue to check our latest developments as we post new information.
URGENT ATTENTION REQUIRED – YOUR LIFE INSURANCE WITH DESJARDINS WILL BE TERMINATED AUGUST 31, 2017
A letter has been mailed out to all affected non-USW members who were members of the group life insurance policy that U.S. Steel Canada Inc. maintained. The letter can be viewed here.
The termination of the group life insurance policy is as a result of cost of premiums increasing significantly because the retiree group would no longer include all of U.S. Steel’s employees and retirees in the United States, and the average age of the non-USW group would be significantly higher when considered in isolation.
The Representative Committee has negotiated an agreement with Bedrock to allow the current life insurance policy to continue until August 31, 2017 to provide you with enough notice to make alternative arrangements. The Representative Committee is actively exploring alternatives. However, the Committee has determined it will be in the best interest of the group as a whole to terminate the Desjardins policy on August 31, 2017.
For those 65 years an under as of August 31, 2017, you will have the right to convert your individual coverage. A pamphlet has been prepared by Desjardins including a summary of options and included in the mailing sent to members. Please contact Desjardins for further details.
Emergency Retiree Fund Extended
The Representative Committee is pleased to report that significant progress has been made in establishing a new Trust Fund with salaried representatives and an independent professional trustee who are working diligently to develop a new plan with the limited funding that is available in order to provide meaningful health benefits for retirees and their families.
In the interim, the Monitor and Green Shield have agreed to continue to administer a fund to provide emergency health and dental benefits to those who have no other coverage, similar to the Retiree Fund that has been in place since April 1, 2017. As the cost of these benefits will ultimately be borne by the trust we are establishing for the new OPEB Plan, we believe it is appropriate to limit eligibility for benefits under the Transition Fund to those who have no other options, and for whom paying for the service would cause a significant hardship for themselves and/or their family.
If you have any questions regarding the above please contact Representative Counsel at 1-866-777-6341 or email us at usscrepcounsel@kmlaw.ca.
