December 03, 2008

USW call on Nova Scotia to change Trenton works trustee

It is reported that members of the United Steelworkers are calling and visiting their MLAs and have even met with the premier to convince the Nova Scotia government to get rid of Ernst and Young as the trustee for the bankrupt Trenton Works.

Ms Marie Kelly assistant director of USW Ontario in Atlantic said that "Our union and the province are the only two main creditors. A creditors' meeting is scheduled for March 31 and the government must show that it supports communities like Trenton, whose major employer was allowed to slide into bankruptcy by its US owner, the profitable Greenbrier Companies.”

Ms Kelly said that "Based on past experience with Ernst and Young over the demise of Sydney Steel, we have no confidence in this company to do the right thing by the community or workers. We need to be sure that our claims will be dealt with."

She added that there are 39 former office and technical employees owed severance amounting to USD 1.5 million, a pension shortfall of USD 6.8 million and a benefit shortfall of USD 157,000. The province, through a loan guarantee is owed USD 8.8 million.

Ms Kelly said that "Something smells when it appears that all other creditors appear to have been paid before the company went into bankruptcy. There needs to be an inquiry by a trustee that hasn't been involved to date and one that can come into the situation in a neutral position to determine whether something inappropriate has occurred. The government of Nova Scotia owes to its citizens every effort to support communities and jobs. We want the province to join with us as full partners in the search and recruitment of a new buyer for TrentonWorks.

She added that "For us, the real bottom line is that we want the plant to be purchased and production started up with a plan to employ as many workers as possible for the long term."