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THE HAMILTON SPECTATOR WEDNESDAY, MARCH 4, 2009

LOCAL
A CENTURY OF STEELMAKING
For nearly 100 years Stelco (now called U.S. Steel Canada) has been a major presence on Hamiltons skyline and a dominant player in the citys history. It grew during the Great Depression, and thrived through wars. It survived divisive labour disputes and bankruptcy protection. Through the decades Stelco played a major role in the citys social and economic history.
Known as: The Steel Company of Canada; Stelco; U.S. Steel Canada Founded: June 8, 1910 From five companies: Canada Screw Co., Limited (est. 1866) The Montreal Rolling Mills Co. (1868) The Dominion Wire Manufacturing Co., Ltd. (1883) The Hamilton Steel and Iron Co., Limited (1900) Canada Bolt and Nut Co., Ltd. (1910). First World War: Steel production is redirected to make shells for the war effort. Profits soar and the output of steel ingots (unfinished steel moulds) doubles. More than 3,000 new employees are hired. The Great Depression: The company, because of recent expansions and the strength of its finishing works, is hit less badly than other manufacturers. Through the 1930s, the company continues to prosper when the Canadian government increases duties on steel imports from the U.S. The company does so well it spends almost $8 million replacing open hearths and blooming mills. Second World War: The company goes back to making shells and also supplies steel for ships and army transports. Stelco hires and trains women to fill the gaps left by workers who have joined to war effort. The strike: On July 15, 1946, more than 2,000 Stelco workers walk off the job to begin a bitter, 81-day strike that divides the community and splits families. At issue is higher wages, a 40-hour work week and recognition of their union as a bargaining unit. The strike is seen as a major victory for Canadas union movement. The 1950s: The postwar consumer boom means lots of demand for Stelco steel for automobiles and other consumer products. Stelcos steel capacity triples to three million tons. In 1958, the workers at Hamilton Works go on an 86-day strike, claiming the company is not passing on the benefits of its success to its employees. The 1960s: Stelco sets records for steelmaking but again finds itself in another strike in 1969. The 1970s: Stelco makes the controversial decision to move its head office to Toronto. In another move, more than 1,000 office employees are shifted from Hilton Works to offices in the new Stelco Building in Jackson Square. The 1980s: The Steel Company of Canada changes its name to Stelco Inc. to satisfy new French language requirements. It is easier to use in French and English. The Lake Erie Works in Nanticoke opens after six years of construction, 15 years of planning and $870 million. It is called one of the most advanced and productive steel-manufacturing facilities in the world. A 125-day strike in 1981 is Stelcos longest ever. More than 7,000 out of 25,000 workers are laid off as steel prices collapse due to low demand. The 1990s: The United Steelworkers call another strike in 1990. The company moves its main headquarters back to Hamilton. Stelco loses $136 million in 1991, and share prices plummet to $6 from $26 in 1991. The next year, shares sell for less than $1. The community rallies, buying Stelco shares, and two years later shares are trading for $9. The company finishes the decade by taking a so-called poison pill strategy, to fend off hostile takeover bids. 2003: Stelco losses mount amid rumours of imminent bankruptcy. CEO James Alfano steps down after 30 years at Stelco. Former Noranda CEO Courtney Pratt takes over. 2004: Stelco enters bankruptcy protection under the Companies Creditors Arrangement Act with, among other problems, a $1.3-billion pension shortfall. The steelworkers union contests the bankruptcy protection process in court but loses. Steel prices soar and the company posts record profits. The Ontario government kicks in $150 million to Stelcos pension shortfall. 2006: Stelco emerges from bankruptcy protection with U.S. steel turnaround whiz Rodney Mott as its CEO. There are new owners: Tricap Management, Sunrise Partners and Appaloosa Management. Stock in the new company debuts at $5.50 and shoots above $21. Shareholders, who saw their investments cancelled in the bankruptcy process, complain bitterly. 2007: Stelco loses $240 million in its first four quarters after emerging from bankruptcy protection. U.S. Steel announces it is buying Stelco and by October completes the deal. 2008: Layoffs take place at both Erie Works and Hamilton. The company announces an eightweek shutdown of its Hamilton blast furnace amid worldwide economic turmoil. March 3, 2009: U.S. Steel Canada says it will lay off 786 workers at Lake Erie Works and 720 workers at Hamilton Steel. The cuts are on top of 684 already laid off.

SPECTATOR FILE PHOTOS

In the 1970s, Stelco made the controversial decision to move its head office to Toronto. The Lake Erie Works was added in the 1980s, but Hilton Works remained a large part of the core business.

On a bright October afternoon in 1946, Stelco workers and their supporters celebrate the end of the historic strike outside the Hilton Works gate.

Historical perspective
The steel industry in the latter part of the 19th century and early part of the 20th century had an incredibly huge impact on Hamiltons evolution from mid-level city to a major economic player in the country ... Steel was key at that time for Hamilton growing so quickly. The city became a major example of really good urban development and the money provided by the jobs at the steel companies and from municipal taxes had a major, positive impact on the citys growth. That impact continued all through the First World War and the Second World War. In other communities the war had a negative economic effect but here it tended to be positive, at least for the steel companies and their related firms ... Up to the 1950s and 1960s the steel city image continued. It was definitely a part of the citys character but in the post-industrial era we are in now, steelmaking is a smaller part of a bigger picture. The local economy is far more diversified now.
Local historian Brian Henley

A steelworker expresses his anger as he joined the picket line at Hilton Works when 10,000 Stelco employees hit the bricks in August 1990.

Compiled by Mark McNeil from Spectator files and interviews.

Truckloads of steel coils were a familiar sight around the Hilton Works operation.