News
Union, AbitibiBowater reach deal for Eastern mills (June 01, 2010)

OTTAWA — Workers at AbitibiBowater pulp and paper mills in Eastern Canada have voted to approve a new collective agreement that includes cost reductions for the company and wage reductions, but prote…

OTTAWA — Workers at AbitibiBowater pulp and paper mills in Eastern Canada have voted to approve a new collective agreement that includes cost reductions for the company and wage reductions, but protects pensions for retirees and workers.

“Our members have voted to protect retirees and pensions, and to bring this company out of bankruptcy protection,” said Communications, Energy and Paperworkers Union of Canada national president Dave Coles.

The five-year agreement is conditional on government approval in Qubec and Ontario. Running until 2014, it maintains all current pensions and accrued pension service, but also includes a new jointly managed pension plan with 10% employer contributions for future service. The agreement also includes a 10% wage reduction with wage increases resuming in 2012 and 2013.

The agreement covers about 3,000 CEP members in 18 local unions.