Court Rules Against Delay in U.S. Steel Case
07/27/2010 - Canada’s Federal Court of Appeal has ruled against U.S. Steel’s request to for a stay in proceedings related to the company’s failure to satisfy commitments made under the Investment Canada Act prior to the company’s purchase of Stelco.
Canada’s Federal Court of Appeal has ruled against U.S. Steel’s request for a stay in proceedings related to the company’s failure to satisfy commitments made under the Investment Canada Act prior to the company’s purchase of Stelco.
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Prior to its purchase of Stelco, U.S. Steel had made numerous commitments to the Canadian government to ensure that its purchase would provide a "net benefit" to Canada, as required by the Investment Canada Act.
U.S. Steel later (March 2009) shut down former Stelco operations in Hamilton and Nanticoke, Ont., citing adverse market conditions.
The federal government subsequently took legal action against U.S. Steel, alleging the company broke its commitments.
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In its finding, the Federal Court of Appeal referred to the role and purpose of the Investment Canada Act (including encouraging employment opportunities for Canadians) as a "valid public purpose."
"This ruling stands up for the principles for which the Investment Canada Act was created: the economic and social benefit of Canadians and Canadian communities in any foreign ownership of our natural resources and industries," said Ken Neumann, United Steelworkers (USW) National Director for Canada.
"The federal court's decision not to stay the proceeding of this important case underscores the law's role in upholding important public policy, and the urgency of these matters to Canadian workers and communities," noted Neumann.
