Some retired mill workers in Dalhousie, N.B., are optimistic about a tentative agreement between AbitibiBowater and the union representing most of its Canadian employees.

AbitibiBowater Inc. closed its paper mill in the town in 2008 and has been in bankruptcy protection since last spring.

But it reached an agreement with the Communication Energy and Paperworkers union on Sunday, which could allow the forestry company to emerge from bankruptcy protection and complete its restructuring plan.

'For people who were off and out of there for many years, reducing their pension by 25 per cent could have meant the difference between living and existing.'—Louis Mazerolle, retired Dalhousie mill worker

Union officials have said the breakthrough came when AbitibiBowater withdrew its proposal to terminate employee pension plans, which would have reduced pension benefits by an average of 25 per cent.

Sandy Beckingham, who retired from the Dalhousie mill when it closed, said he and hundreds of other retired workers have been worried about their pensions.

"I did my time at the mill, I did my years, I was entitled to a pension by law. Why should I be bothered or worried about how they're doing?

"We put money away in trusts. Maybe we should have put it under the pillow."

It's been difficult, said Louis Mazerolle, who also retired when the mill closed.

"Well if you're going to work 37 years and expect a pension, then fall into a hole where there is none, then there's not much survival at the end, is there?

"I'm darn glad that it happened the way that it did for many of the older people that are pensioned off," he said.

"In my case it's not too bad. But for people who were off and out of there for many years, reducing their pension by 25 per cent could have meant the difference between living and existing."

Ratification vote next month

No details about the agreement have been released. But active employees had to make wage concessions that would be used to bolster company pension funds, according to the union.

Details won't be released until the ratification vote is complete next month.

Pension regulators in Quebec and Ontario must also give their nod.

The tentative deal covers about 4,500 workers at 12 pulp and paper mills in Eastern Canada. It also covers 8,000 retirees.

Talks with other unions representing 1,200 workers are still underway.

The company has been operating under creditor protection in both Canada and the United States for almost a year. It filed to restructure after struggling amid slumping newsprint demand and debts approaching $5 billion.

AbitibiBowater announced in November 2007 that it would be closing or idling mills in New Brunswick, Quebec, Ontario, British Columbia and Texas.

The downsizing followed the merger of Montreal-based Abitibi-Consolidated and the paper division of Bowater, an American forestry company based in Greenville, S.C.

The Dalhousie mill had been operating for about 80 years.