HOT NEWS! HOT NEWS! HOT NEWS! HOT NEWS! HOT NEWS! HOT NEWS!
The following news regarding STELCO HILTON WORKS has not been
previously released to the public as of the date and time of this
posting!
Stelco has had in place since 1990 a profit sharing program (I.S.P.)
known as the Incentive Sharing Program with it's employees whereby in
any given fiscal quarter, when a certain profit trigger point is
reached, the company will pay a particular sum of money to each of
their employees based on how much beyond the trigger point the
company's profits are.
In the past, the company has paid out some bonuses, however, it has
come to our attention in the past months that the company has been
somewhat dishonest in including certain areas of Hilton Works towards
the total profit picture. The area in question is the very profitable
Z-Line in which Mitsubishi has an approximate 49% ownership. The
company maintains that because of the fact that it is not wholly owned
by Hilton Works that the Z-Line should not be included in the profit
sharing, however, the Basic Agreement between the Union and the Company make no provision for excluding any part of Hilton Works in the profit scenario.
As a result of the recent findings by our newly elected Union Executives, the Union is taking the Company to Arbitration and possibly court regarding this matter. Should the arbitrator or the courts rule in the Union's favour, and by our initial reports this will seem to be the case, the Company may be forced to pay each of it's employees any lost monies retroactively dating back to 1990.
By our calculations, this figure could foreseeably amout to somewhere in the neighborhood of $8000. to $10,000. per employee.
The present workforce amounts to approx. 5000 employees...that translates to a figure of $50,000,000. This figure does not include
what shareholders may have been robbed of as a result of this
discepancy.
This dollar figure will impact Stelco's net profit substantially should the courts rule in the Union's favour. It will also impact future I.S.P. payouts because we feel the inclusion of the Z-Line will
in most quarters be enough to trigger the profit plan into a payout.
Stay tuned as we will be bringing you further updates as they become available. The first crucial date is the first two weeks of November 1997 as this is when the Arbitration proceedure commences.
Yours truly,
An honest, hard working, dedicated, productive Stelco employee. |
