INTERNATIONAL COMPENSATION

Ryan James & Alexis Currell-Therrien

NOVEMBER 4, 2015
PRINCIPLES OF HUMAN RESOURCE MANAGMENT

Summary
In 2007, U.S Steel, an American company that purchased what was formally known as
Stelco, is now asking for permission to restructure the Companies Creditors Arrangement Act
(CCAA). Within this request it involves wanting to cease post-employment health benefits. Of
course, United Steelworkers Union and many retirees came forth opposing such a request. John
Gallant worked at Stelco for 32 years, now 63, he suffers many health issues. He knows his life
is at stake, without the benefits he was once promised, he cannot afford his costly medication. A
total of 14,000 workers and retirees will be impacted by the CCAA if its restructured. Michael
McQuade, president and general manager of U.S Steel Canada, want to maximize profits, by
stripping the benefits of the retirees. He wants to employ and provide benefits to only 2,200
people. Tony Depaula, Bill Ferguson and Mayor Fred Eisenberger all made similar statements
stating that they wont abandon anyone, theyre hard earned benefits wont be taken away.
Question One
Yes, I certainly agree with John Gallant, the man fighting for his benefits. As it stated in
the beginning of the article, his heart problems and rheumatoid arthritis are accompanied by a
long list of medication. He relies on his Stelco Pension to pay for his medications so he can
sustain a healthy life style. Without these costly medications he cant survive. Not only will this
affect John Gallant greatly, it will affect 14, 000 other workers and retirees, many who could be
in the same situation as John Gallant.
Question Two
Although we do not yet know the outcome of this case, I do believe the way we handled
it would be different in other countries simply because the outcome has severe impacts on

citizens, different laws and regulations are placed on businesses to protect employees. The
Canadian government is heavily involved with the US Steel because it has a strong effect on the
city of Hamilton. Now if the roles were switched around where a Canadian business threatened
the lively hood of Americans and was going to ruin American jobs the American Government
would be heavily involved with talks with our Canadian Government to work out some
resolution. But in this instance, the American Government is not stepping in to stop or restrict
US Steel and this may not end very well for Hamilton. Since America seeks the benefit, they see
no problem with it, but if it were to happen to them they would find ways to make the Canadian
Government end the reallocation for the protection of their citizens and economy. The difference
country to country is that are different rules and regulations that are followed, the pensions of the
US are stronger than Canadians but that is because of their Government platform but in the end
the American workers would still receive their benefits and the Canadian workers may not.
Question Three
The article relates to our human resource class because it highlights many different aspects
within the course. US Steel workers and ex-workers could lose their benefits and their pensions.
Stelco, the company before US Steel, promised benefits after people retired from their company.
The benefits that they had promised were negotiated and agreed upon which coincides with the
Human Resource Department. The Human Resource has to initiate the hiring process, firing
process, retirement, severance packages and all negotiations between employers and employees
that involves contracts. When US steel decided to request to the court asking that they suspend
payments for health, medical dental and life insurance for post-employees. They effects of not
having these benefits could make people very sick or even deceased. The opposite view is a
corporate look at how the executives came to the decisions they did which incorporates ethics.

The decision is to stop making these payments and become more profitable or keep making the
payments to the employees and lose money. There are approximately 14000 people being
effected by the decisions of the General Manager Michael McQuade of US Steel Canada. "With
a court order, we can preserve work and meet obligations to approximately 2,200 employees and
continue to deliver high-quality steel products to our customers from our two Canadian steelmaking facilities," (Craggs, 2015) This is a quote from Michael McQuade that reinstates his
views about how he wants his company to run more efficiently for profits. The union is trying to
fight against this, trying to fight for the health and safety of the employees and past employees
too. The decision to restructure and reallocate to the US is an unethical decision in the eyes of
Hamilton and cutting the benefits of the hard workers who were exposed to health problems and
essentially forced to retire will be harmful and perhaps deadly if it does go through. The workers
were promised a compensation package and now may not receive one as well as current workers
could lose their job and see no retribution for it.
Question Four
This article has not given any results as to what may come of all this but it has taught me the
importance of compensation and how people rely on it. This has taught me also about the legal
system because it also showed that Stelco promised benefits and now US Steel is requesting a
restructure that may result in all the Stelco promised benefits to end up disappearing. I have
learned about the power of unions and how they are fighting to maintain the pensions that were
already agreed upon. The power that corporations have on the impact of so many lives and even
potentially the city as a whole as Hamilton is looking at a potential loss of 14000 jobs and retiree
wages and I think this decision is highly unethical.