U.S. Steel Canada pensioners are looking at their options following another legal loss in the company’s court-supervised restructuring process.
The Ontario Court of Appeal, on Friday, ruled against putting their pension claims ahead of U.S. Steel’s debt claims.
McMaster business professor Marvin Ryder told CHML’s Bill Kelly Show, he doesn’t believe the ruling will be challenged in the Supreme Court.
Ryder says “if the company fails and is truly bankrupt, pensioners would likely see their pensions reduced somewhere on the order of 15 to 30 percent.”
If the steelmaker were to go out of business, U.S. Steel Canada’s pension plans would be as much as 830-million dollars short of what would be needed to pay all 20-thousand retirees and pensioners.
United Steelworkers Local 1005 president Gary Howe says it reinforces “the immediate need for a public inquiry” into the issue.