The Communications, Energy and Paperworkers Union of Canada (CEP) has agreed to a tentative agreement with AbitibiBowater to renew the collective agreement. This deal fulfills an essential condition towards the emergence of the company from the current restructuring process.
"We have the best possible agreement, given the precarious financial condition of the company," says CEP president Dave Coles. "We are proud to have been able to protect retirees and to have created a new stable pension plan for the active workers. Our members will no longer have to fear the shadow of an insolvency of their plan."
The company took off the table its proposal to terminate the pension plans, which would have reduced pension benefits by an average of 25%.
This agreement covers about 4,500 workers and 8,000 retirees from 23 AbitibiBowater locals at 12 pulp and paper mills in Eastern Canada.
Jean-Philippe Côté, AbitibiBowater's director of public affairs for Canada, said in a report in the Montreal Gazette that the pension-deficit issue -- which affects all company pensioners -- is still the subject of discussions with various stakeholders, including governments.