Essar Steel Algoma announced Dec. 16 that Queen’s Park has come through with pension relief for the Sault Ste. Marie steel producer.
The provincial government approved a regulation to allow for the company to make fixed payments over the next three years and extend the amortization period through to 2024. The regulation is retroactive to Dec. 1. Essar’s pension shortfall was more than $500 million.
“This new funding formula provides Essar Steel Algoma with greater predictability in the near term and more manageable payments over the long term,” said company CEO Kalyan Ghosh in a statement. “We truly appreciate the support of all of the plan members, including our employees, retirees and the union; without them this solution would not have been possible.”
The company thanked Sault MPP David Orazietti for his work with provincial finance minister Charles Sousa to put the plan together.