Industry Canada Warns of Potential Lawsuit Against US Steel Canada

Industry Canada has warned that the federal government will sue US Steel Canada if the company fails to meet its obligations to retirees.

“It is unacceptable that US Steel Canada is abandoning these workers and their families,” James Moore said in a statement released Monday.

“These commitments were not invented specifically for US Steel Canada, but the work of generations of workers who helped build the company's plants, and indeed the entire steel industry in the heart of southern Ontario,” the minister said.

Moore's reaction was in response to a decision by the Ontario Superior Court, announced Friday, that allows the company to continue operating without paying medical benefits or retirement benefits or property taxes to municipalities.

Recall that the court approved US Steel's plan to split the Canadian division into an independent company. At the same time, US Steel will no longer be able to qualify for the purchase of its factories in Canada if they are inserted for sale.

Industry Canada said US Steel Canada needs the tools to return to profit, but "that doesn't mean she will ever be allowed to wash her hands and leave those to whom they should be grateful."

Moore said that the company will definitely get a feel for the legal effect of obligations regarding the payment of pensions and benefits.

“We are the government that was the first to sue US Steel Canada, and we will not be afraid to do it again,” the politician summed up.