Union demands new trustee to dispose of Trentonworks assets

Published Friday March 28th, 2008

NEW GLASGOW, N.S. - The union representing former employees at the TrentonWorks railcar plant is calling on the province to replace the bankruptcy trustee for the plant.

The United Steelworkers union says it has no confidence in Ernst and Young to do the right thing for the community or workers, based on past experience with the firm during the demise of Sydney Steel.

Marie Kelly, the union's Ontario/Atlantic assistant director, said the steelworkers and the province are the two main creditors, and they need to be sure their claims will be dealt with.

The union says 39 former office and technical employees are owed $1.5 million in severance, while the pension shortfall sits at $6.8 million and the benefits shortfall totals $157,000.

The province is owed $8.8 million through a loan guarantee.

A creditors' meeting is scheduled for Monday.

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