Ottawa asks court to reverse U.S. Steel Canada's job cuts

[CHIMO]

Source: THE CANADIAN PRESS

The federal government is going to court to force American industrial giant U.S. Steel Corp. to live up to job commitments it made two years ago in return for approval to buy the former Stelco Inc. of Hamilton.

Industry Minister Tony Clement said today he has asking the Federal Court of Canada to force the steel producer to meet commitments it made in 2007 on capital spending, production and research and development spending in Canada.

Seeking a court order to force a company to maintain job commitments is an unusual step for the Canadian government. But it reflects growing unease in the country about the takeover of Canada's steel and mining industries and whether foreign owners will keep industrial jobs in the country.



Read more: http://www.thestar.com/business/article/668051

[HeresyLives]

1. Oh yeah, that'll work.

:rofl:

[iverglas]

2. trying to figure out what the undertakings are

Sounds like they were not public.

http://www.financialpost.com/m/story.html?id=1353227

National Post, March 4, 2009

The minister would not elaborate on exactly what "undertakings" the company has made with the government. But in a news release in October 2007, after receiving approval from the government to acquire Stelco Inc., U.S. Steel said it had agreed to a number of commitments related "to the funding of Stelco's main pension plans, increases in production and exports from Canada, (and) significant capital expenditures at Stelco's facilities (and) R&D," among other things.

Under the Investment Canada Act, foreign companies attempting to acquire Canadian firms must prove that the deal represents a "net benefit" to Canada.

It would be nice if they were enforceable.

Anybody remember the Foreign Investment Review Agency?

[CHIMO]

3. Wasn't That Something

That former socialist governments had?

Although it is still brought out if China wants to buy something.

Ottawa seeks court order to force U.S. Steel’s hand

But in a filing to American securities regulators in 2008, U.S. Steel identified promises to "maintain employment levels" at the former Stelco and commit $200 million in capital expenditures. About $100 million of that investment was to be spent at Hamilton Steel.

Though U.S. Steel has gradually ramped up steel production at plants in Indiana and Illinois, it has not restarted any steelmaking operations in Canada.

The firm recently recalled 800 Hamilton workers, though union leader Rolf Gerstenberger has said the move was made in order to avoid setting aside about $15 million in severance pay for workers. The payments become mandatory under Ontario labour law when workers are laid off more than 35 weeks.

U.S. Steel’s Hamilton coke ovens are now the only Canadian facility in operation. The firm recently shut down cokemaking at Lake Erie Steel in Nanticoke - where it is in the midst of renegotiating a labour contract that expires on July 31.
http://thespec.com/News/BreakingNews/article/601966

And just for reference.
Foreign Investment Review Agency

The Foreign Investment Review Agency was a federal agency formed by Parliament in 1973 as a result of concerns about foreign presence in the Canadian economy. The agency began screening foreign acquisitions of Canadian businesses in April 1974 and the establishment of new foreign businesses in October 1975. The agency advised the government (through the minister of industry, trade and commerce) on what action should be taken, if any. In making its recommendations, FIRA took the following factors into consideration: the effect of the investment on employment and economic activity in Canada; the effect on Canadian productivity, technological development and product variety; the degree of Canadian participation in management; the effect on competition; and the compatibility of the investment with national policies.
FIRA was criticized by those concerned about American economic influence because it approved most of the applications it received. The agency was also strongly opposed by many business people, and in December 1984 Sinclair STEVENS, industrial expansion minister, revised its mandate to promote and facilitate investment in Canada by Canadians and foreigners; to undertake research and analysis; to provide policy advice; and to ensure that significant investment by foreigners created a net benefit to Canadians. There was also a move within the agency to implement special restrictions in cultural industries, eg, book publishing and film production. The name of the agency was changed to Investment Canada in 1985.

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002896

[Vidar]

4. I like the idea, though I don't know about its workability.

[Wednesdays]

5. K&R

:kick: