The Star reported that hundreds of steel workers from the Lake Erie plant at Nanticoke will be watching closely as a legal battle between US Steel and the Canadian federal government plays out in Federal Court this month.

The battle involves allegations the US company did not live up to production and employment commitments under the Investment Canada Act when it bought Stelco in 2007.

The federal government, which maintains the Pittsburgh based company has broken production promises it made to get approval to buy Stelco, has taken the unprecedented step of suing US Steel.

Mr Tony Clement industry minister of Canada said that "US Steel in order to complete the transaction made several undertakings with the government of Canada such as employment levels and productions levels, and our position is they have to adhere to the agreement. Obviously, I feel for the workers, we all do."

The Federal Court in Toronto is to hear arguments on January 12th 2010 and January 13th 2010.

Mr Wendler, who along with about 200 others, was suddenly locked out in August by the company when talks on a new labor contract failed, said that "It's very tough. If I'm not mistaken, we are up to about 28 young fellows who have lost their houses. So there is a lot of guys having a tough time."

Another 800 workers laid off earlier in the year had their 35 week severance pay halted because of a loophole in the labor laws that allows a business to suspend payments during a labor dispute, which started August 3rd 2009. The 800 are entitled to employment insurance while the locked out workers are not. The locked out workers are getting USD 200 a week strike pay, and in some cases, the union is giving a small top up.

Mr Bill Ferguson president of United Steelworkers Local 8782 said that the union maintains that what US Steel has done is an illegal lockout.

(Sourced from www.thestar.com)