TORONTO – The Ontario government says a transition fund to cover health costs for retired employees of US Steel Canada should be up and running by Jan. 1.
The $3 million fund was announced in October as U.S. Steel separated from its Canadian operations.
A government statement issued Thursday said up to $2.5 million will be devoted to prescription drug costs while the remaining money will be used for urgent dental and other health services.
Details on implementing the fund is subject to court approval; a hearing is scheduled for Dec. 23.
U.S. Steel Canada employed about 2,000 people at the Hamilton Works in Hamilton and Lake Erie Works in Nanticoke, Ont.
It has been operating under court protection since last year while attempting to reach a compromise with its creditors.