Former Mayor Larry Di Ianni and Mr. Ecklund's daughter Erika

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LARRY'S CORNER- Hamilton's Former Mayor Speaks

former Mayor of Hamilton, Larry Di IanniMourning The Steel Company of Canada

By Larry Di Ianni
(posted March 4, 2009)

The unthinkable has just been announced. U.S. Steel has just announced the ‘temporary’ closure of its Canadian operations. This means that Hamilton’s former Stelco site and, surprisingly, much of the more modern Lake Erie operations are closing their doors because of the scarcity of steel orders.

As I read this shocking news, I am reminded of the roller coaster ride this community was put through during the CCAA bankruptcy protection process when I was Mayor.

No sooner was I elected to the position, than it seemed that the economic sky was caving in on the city of Hamilton. Shortly after my inaugural meeting in January of ’04, I was visited by the new president of the Steel Company of Canada, Mr. Courtney Pratt. It was the first of many meetings and conversations I had with Mr. Pratt. He was there to brief me on his plans for the company and to prepare me for the rough days ahead.

I knew precisely what he meant when Stelco was put into court protection under the CCAA bankruptcy avoidance process. I also spoke with our local MPP’s, members of Council, and members of the union, both 1005 and the Lake Erie local. Needless to say all parties had a different view of what the process meant and what the implications were for the city. I also spoke with the Premier, who appointed a monitor for the Stelco file, and I appointed our Director of Economic Development to follow the process to see how the city might be able to help. We alerted our Social Services staff in case they were needed to provide assistance to any displaced employee.

The Doomsday scenario we all worried about was the exact same one that seems to be unfolding now. Hamilton’s Stelco would be shut down, leaving this community shaken to its roots because of Stelco’s iconic standing in our city. I was also cognizant of the workers directly affected, along with the many companies who supplied work for the Steel Company. Literally thousands and thousands of jobs were being placed in jeopardy.

In another essay, I will recount the process and my interesting involvement in it, along with the various sides and struggles that shaped up during the CCAA ‘discussions’. Now is not the time. This development is very bad news for our city. The global economy is sputtering out of control. This sudden and major closure brings this reality to Hamilton in a dramatic and real way. This is the time for all our resources to support the dislocated employees and their families. It is also the time for cool heads to decide where we go from here. There is a role in this crisis for the city, the province, the federal government and the private sector. The Mayor should take the lead in managing meetings among stakeholders. The office represents the city and its families and should be used as such. Not to grandstand or seek political advantage, but to bring a human face and a human touch to a truly unsettling situation. This is a very sad day for our community.

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