While not providing a specific dollar amount, Ontario Premier Doug Ford, on a visit to the Sault’s Algoma steel mill Oct. 23, announced his government is working on a deal to provide regulatory relief from certain Pension Benefits Act obligations as well as Pension Benefits Guarantee Fund (PBGF) coverage if certain conditions are met as Algoma continues to fight its way through hard times.
“Our steel industry is going through a tough time right now. The new (U.S.) tariffs are making it harder for the Canadian steel industry...our government will do its part its part to protect hard working steel sector workers right across Ontario,” Ford said to reporters, accompanied by Sault MPP Ross Romano at the plant’s Number 2 gate.
Acknowledging Algoma is the second largest private sector employer in Northern Ontario and the largest in Sault Ste. Marie, employing 2,700 direct employees and providing many spinoff jobs, Ford said “supporting pension provisions agreed to by the parties is an important first step.”
“Negotiations are ongoing and more information about how Ontario is supporting Algoma will be announced as soon as we can.”
Algoma's pension plans support approximately 2,100 current and 6,300 former or retired employees.
“We can’t disclose that (a final dollar figure in regard to supporting steel plant pensions) right now. Over a short while we will disclose that. We’re in the middle of talks right now but it’s going to be substantial and it’s going to really support Sault Ste. Marie and the steelworkers,” Ford said.
Ford said talks will continue “over the next few weeks...but it’s going to be real positive. I think we’re 99 point nine per cent there.”
Ford said “there are very minor conditions” attached to reaching a support package for Algoma pensions, but he did not divulge the nature of those conditions.
“It (pension support) does help when you have a 25 per cent tariff on steel and 10 per cent on aluminum. Anything helps.”
“I just wish we could get rid of these tariffs and work hard with the U.S. government. I’ve been burning up the phone lines with 19 governors. We’re their number one trading partner and we’re going to do everything we can to have free trade with the United States (but) it has to be fair.”
Ford then switched gears, and with Algoma as a backdrop, attacked the federal government’s upcoming carbon tax.
Prime Minister Justin Trudeau announced more details of the tax on industrial pollution and rebates for individual Canadians under the tax plan while visiting Ford’s home riding of Etobicoke on Tuesday.
“He was in my area announcing the worst tax ever. It’s an absolute terrible tax for the hard working families and businesses, not only around this province, but around the country.”
Ford mentioned several provinces, including PEI, New Brunswick, Québec, Ontario and Manitoba, have clearly expressed their opposition to the carbon tax and intention to fight it.
“People don’t want this tax.”
“It does nothing for the environment. It’s just another Liberal tax grab. I always say every time you stick your hand in your pocket you have Justin Trudeau’s hand in your pocket, taking money out. It’s a job-killing, family-hurting tax,” Ford said.
Ford pointed to his own government’s lowering of gas prices since winning power in Ontario in June, as well as reducing hydro rates and introduction of tax cuts.
“That’s what we need here in Ontario (to help businesses thrive and create jobs). Get rid of the regulation. Do you believe there are 385,000 regulations in Ontario? Poor Algoma. I feel sorry for them. They had people just working on regulations when they could be reallocated to make profitability. How can you have every single company out there employing people just to fight regulations?”
Ford said his government will work continue to cut red tape to help business.
Ford and Romano, accompanied by senior Algoma management officials, went on a tour of Algoma’s Direct Strip Production Complex (DSPC) after Tuesday’s announcement.
This story appeared originally on SooToday.com.
