Monday, March 8, 2010

Abitibi reaches tentative agreement with union.

Abitibi, union work out deal
March 08, 2010

This is very positive news in that the workers save their pensions plans and the company will be a step closer to emerging from bankruptcy. However, the details are not spelled out so perhaps the situation is not as rosy as it looks. We will see how the affected workers look at the deal since they get to ratify it. Abitibi now needs to make a deal with Newfoundland and Labrador!

MONTREAL–AbitibiBowater Inc. has reached a tentative labour deal affecting some 4,000 workers, which brings the newsprint maker closer to emerging from bankruptcy, the Communications, Energy and Paperworkers Union of Canada said Sunday.

The union said the tentative pact to renew its collecting bargaining agreement was reached after the company withdrew a proposal to terminate pension plans, which would have reduced pension benefits an average of 25 per cent.

The union said the agreement will protect its members from the plan's possible insolvency. It must still be presented to members and ratified by the union.

Abitibi has been operating under court protection from bankruptcy in the U.S. and Canada since April.

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