Steelworkers Call for Government Support at Former Trenton Works
03/31/2008 - Members of the United Steelworkers are campaigning to convince the Nova Scotia government to remove Ernst and Young as the trustee for the bankrupt Trenton Works.
Members of the United Steelworkers (USW) are campaigning to convince the Nova Scotia government to remove Ernst and Young as the trustee for the bankrupt Trenton Works.
"Our union and the province are the only two main creditors," said USW Ontario/Atlantic Assistant Director Marie Kelly. She said that the other creditors appeared to have been paid before the company went into bankruptcy.
A creditors' meeting is scheduled for Monday, March 31, and Kelly says the government needs to show its support for Trenton. "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," Kelly said.
"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," said Kelly. "We need to be sure that our claims will be dealt with."
There are 39 former office and technical employees owed severance amounting to $1.5 million, a pension shortfall of $6.8 million, and a benefit shortfall of $157,000. The province, through a loan guarantee, is owed $8.8 million.
"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 Trenton Works,” said Kelly. "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."
