An online media source startled retirees of Essar Steel Algoma last week, alluding that members would not be getting paid. That isn’t exactly the case said a spokesperson.
A Toronto court announced last week that Essar Steel Algoma Inc. could suspend $3.38 million of special monthly payments to its pension fund. But that doesn’t mean it’s 1,300 members, most who retired from Algoma Steel prior to being bought by India’s Essar Group 9 years ago, won’t be seeing their pension money. The special payments were seen as a “top up” on pension funds for salaried workers and hourly employees.
A spokesperson for the salaried retirees stated that as long as the company is operating, pensions and benefits will continue.
The court decision will not affect anyone’s pension, at least for the time being unless the company completely shuts down.
The Essar group is in the process of selling the plant while it still operates under creditor protection with $200 million raised in November from a group of investors, led by Deutsche Bank, to fund the ongoing operations.
Essar Steel Algoma was granted protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA), this past November.