Stelco Sold for $3.8 Billion to Other U.S. Oligarchs
Time for a New Aim and Direction for the Economy!
Once again Canadians are reduced to spectators as global oligarchs seek to squeeze yet more social wealth for themselves from steelworkers and Canada's precious productive and natural resources. Canadians flinch when they witness these spectacles of having their economy not used to meet the needs of the people but rather reduced to trophies for the rich as they seek ever greater power, wealth and fame. Canadians want such actions of a few using our economy as their playthings to fight over and amass fortunes to stop. They strive for a people's economy in which the people decide the aim and direction and are in control. Only the people's organized opposition can stay the hand of the rich.
Stelco Chief Executive Alan Kestenbaum from Florida announced July 15 the sale of the Hamilton region steelmaking company to the U.S. steel monopoly Cleveland-Cliffs based in Ohio. The sale came as little surprise following Cliffs' defeat, temporarily, at the hands of Nippon Steel in the battle to buy and control U.S. Steel.
This transfer of ownership of Stelco marks yet another sale
since its fraudulent bankruptcy protection in 2004 under the
Companies' Creditors Arrangement Act (CCAA) and
its
liquidation as a Canadian company. Each change of ownership since
that time has been from the hand of one U.S. cartel to another
with millions of dollars absconded into private hands in the
United States. Many thought the tens of millions the former
Stelco CEO Rodney Mott added to his private fortune would never
be eclipsed when he engineered the sellout of Stelco to U.S.
Steel in 2007 and then scurried back to his mega mansion in the
U.S. with what he looted. But no, the criminal amount that Mott
seized appears paltry compared with what Kestenbaum from Florida
and his gang have engineered from the sale of Stelco to Cliffs.
Criminality in the economy is now entrenched and needs to be
forcefully addressed with accountability and a new aim and
direction under the control of the people.
Kestenbaum bought Stelco in 2017 from U.S. Steel for a reported $70 million in cash while Stelco was in yet another bout of CCAA bankruptcy protection. As always under CCAA, the most powerful in control loot the company of its assets and refuse to pay millions in accounts receivable to local suppliers and outstanding debt, and in this case in 2017 eliminated an estimated $1.4 billion in pension and benefit obligations to employees. The entire deal appeared rotten and suspicious at the time and now appears scandalous with the sale to Cliffs for $3.8 billion.
The affair is so unscrupulous it looks like some kind of legalized Ponzi scheme. It is a disgraceful theft of Canadian resources, production facilities and social wealth. The fact is that such a thing can occur without repercussions for those involved and holding them to account reveals corruption on an unprecedented scale. It certainly raises the issue of a change in direction and aim for the economy and change in outlook and the social class in control of the country's economic, political and legal affairs.
Kestenbaum personally as his share of the looted amount is reported to be receiving $647 million. The rest will be divided up among his gang and others involved from New York. Prior to the deal and since the seizure from U.S. Steel in 2017, Kestenbaum as CEO has annually awarded himself and his cronies millions in what is euphemistically called executive compensation and bonuses. This money was expropriated from the realized new value Stelco steelworkers produced and from the sale of Stelco lands and certain production facilities.
Who knows what Cliffs will cook up for Stelco now that they are assuming control? It is not out of the question to suspect they will point to the government millions in green pay-the-rich schemes that have been awarded to Algoma Steel in Sault Ste. Marie and ArcelorMittal (Dofasco) in Hamilton to switch to electric arc steelmaking and demand the same.
The seizure of Stelco also cements Cliffs' dominance in North
American flat steel production in particular for vehicle
production and gives them an edge in competition with Nippon
Steel as it attempts to seize control of U.S. Steel while facing
fierce global rivals Cleveland-Cliffs and ArcelorMittal and
certain U.S. officials. Cliffs is demanding U.S. regulators stop
the sale of U.S. Steel to a foreign company from Japan while it
seizes control of whatever it can grasp around the world
including Stelco in Canada. Cliffs calls the Japanese company a
national security risk and damaging to the U.S. national economy
while Canada in its view is already annexed and of no consequence
as a country and independent economy and people. Cliffs, Nippon
Steel and ArcelorMittal's machinations are part of the global
competition of oligopolies which operate as coalitions and
cartels and a big factor in the economic crises and endless wars
the world is facing at this time.
During the entire period since the fraudulent CCAA proceedings began in 2004, Local 1005 of the United Steelworkers has put up a valiant fight to defend the rights and claims of steelworkers on the value they produce. On numerous occasions they have carefully outlined what needs to be done to build the steel industry in Canada and a broader independent and self-reliant economy. Such an economy with a modern aim would serve the people and humanize the social conditions and natural environment with control in the hands of those who produce the goods and services the people and society require, and would defend the economy and country against the attacks, thievery, wars and recurrent economic crises of the U.S. imperialist war economy and its striving for global hegemony.
This is what the recent sale calls for.
Steel Not Steal! Our Economy! We Decide!
USW Local 1005 celebrates
75 years since its founding at Hamilton Labour Day 2021
USW Local 1005 fights
second round of CCAA fraud, July 27, 2016.
Hamilton Steelworkers' Day
of Action, January 30, 2016, during fight against second round
of CCAA
fraud.
USW Local 1005 at
Hamilton Labour Day 2014.
Celebration
of the 10th anniversary of the beginning of the Thursday meetings, June
13, 2013. The meetings are a venue for the workers to discuss their
concerns and inform themselves about important economic and political
developments and how to intervene.
Day
of Action, January 29, 2011 "The People vs U.S. Steel" during 11-month lockout by U.S. Steel in an attempt to force
concessions from the workers.
May Day 2010 demonstration and
conference on nation-building organized in Hamilton by
USW Local 1005
Hamilton
steelworkers rally in Ottawa, September 26, 2005, as part of their
fight against the fraud of CCAA insolvency protection.
USW Local 1005 contingent
in Hamilton Labour Day parade, September 6, 2004, during first round of
fight against CCAA bankruptcy fraud.
Rolf Gerstenberger,
President of USW Local 1005, speaks at Hamilton steelworkers rally,
May
Day 2004.
Hamilton USW Local 1005 steelworkers
march February 27, 2004
Steelworkers picket Stelco during
historic 1946 strike.
This article was published in
Volume 54 Number 46 - September 1, 2024
Article Link:
https://cpcml.ca/Tmlm2024/Articles/MS54463.HTM
Website: www.cpcml.ca Email: editor@cpcml.ca