AbitibiBowater closes Gatineau newsprint mill indefinitely
May 18, 2010 By Pulp & Paper Canada
AbitibiBowater is indefinitely closing its newsprint mill in Gatineau, putting 350 people out of work. “Newspr…
AbitibiBowater is indefinitely closing its newsprint mill in Gatineau, putting 350 people out of work. “Newsprint demand fell 30 per cent last year and it is still falling,” AbitibiBowater spokesman Pierre Choquette told the Ottawa Citizen. “We have put three other mills on indefinite closure since 2007 and none have reopened. We will meet with employees to consider options, including transfers to other mills.”
Dave Coles, president of the Communications, Energy and Paperworkers Union says AbitibiBowater “is cheating its workers out of their severance pay by closing the mill while it is under CCAA bankruptcy protection.”
According to the Ottawa Citizen, Coles said the Gatineau mill workers cannot claim severance pay provided by union contracts or provincial law because the plant is operating under bankruptcy protection. They will have to wait in line with other creditors for a portion of any assets available for distribution.
The mill shutdown began April 19 as a temporary closure.
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