U.S. Steel Canada says it will be filing a motion with the Ontario Superior Court of Justice seeking an order to continue its operations and obtain further relief under the Companies’ Creditors Arrangement Act (CCAA) so it can operate beyond 2015.
Part of that relief includes asking the court to permit the immediate suspension of all pension funding contributions except contributions for current service.
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“Pension payments from the U.S. Steel Canada registered pension plans and funded supplementary pension plans will continue to be made to retirees and surviving spouses at this time and are not impacted by this motion,” says a company statement. “However, supplementary pensions paid directly by U.S. Steel Canada to retirees and surviving spouses will be suspended.”
U.S. Steel Canada also wants court approval to suspend payment of post-employment health, medical, dental and life insurance benefits in the near term for retirees, surviving spouses and dependants.
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None of these measures will take effect until such time as the motion is approved by the court.
U.S. Steel Canada has been operating under CCAA creditor protection since Sept. 16, 2014. This protection was most recently extended until Dec. 11, 2015.