The United Steelworkers is pleased with a motion passed Tuesday by the Hamilton City Council’s Planning and Economic Development Committee urging Stelco Inc. to consent to the Steelworkers' appointment of Tricap Management Limited as a financial advisor for the purpose of recapitalizing Stelco.

"This is a major show of support for the union's efforts toward saving the company and protecting the future of employees and retirees," said Scott Duvall, President of the Steelworkers' Local 5328 (Stelwire). "We hope that City Council as a whole will endorse its economic development committee's motion when it meets on April 27th."

The motion calls on Stelco to cooperate with the union and Tricap, including providing access to Stelco's books, records, data, management and professional advisers. The motion also calls on the company to reconsider its initial rejection of the letter of intent signed last week by the union and Tricap, Brascan Corp.'s restructuring fund.

The letter outlines a C$1.35 billion plan to recapitalize Stelco Inc., and remove the company from protection under the Companies' Creditors Arrangement Act (CCAA). Tricap would provide advisory services and, as required, financial assistance to the union in the development, negotiation and implementation of a plan of arrangement that is acceptable to the Steelworkers and removes Stelco from CCAA protection.