Loggers caught up in AbitibiBowater financial woes
Last Updated: Friday, April 24, 2009 | 7:41 PM NT
CBC News
The union representing a group of former AbitibiBowater loggers in central Newfoundland wants the provincial government to intervene, after it discovered that payments for 119 workers have been cancelled.
The loggers took the company's offer of a workplace reduction program that provided bridge financing until they were officially able to retire.
The group opted for the package when AbitibiBowater started cutting its workforce in the woods. Each worker was to receive a payment of $1,200 a month until they turned 65.
AbitibiBowater filed for and received bankruptcy protection in Canada last week.
The workers thought they wouldn't be affected by the company's closure of its Grand Falls-Windsor mill, and the subsequent financial difficulties. That was until Rick Fudge, the president of the Communications, Energy and Paperworkers union local that represents the woodcutters, received the bad news Friday afternoon.
"They were workers, that, for their part, believed that they are home, retired … from all this crisis, and unfortunately today they are included in it. They won't be getting paid," Fudge said.
"It would have meant their bread and butter, in my opinion, because other than their Canada pension, that's probably the only money that they had as an income."
Fudge said the national union is taking legal action against the company, but that process could take a long time. He said the province has to do more to help the workers.
Fudge has requested meetings with Shawn Skinner, the innovation, trade and rural development minister and the head of a task force that is supposed to come up with a plan to help the region, but has only received written responses.
"I know government might be busy, but this is very important. We are the direct people that are impacted. We are what that task force was set up for. We need to know what the plan is," he said.
The news is a blow to rural Newfoundland since the workers are scattered across 40 small communities, including Badger, Twillingate and Seal Cove, and their average age is 62.
"It's hard enough to try to find work and retraining for a 47-year-old, but how do you find [work] for somebody [who's] 63? 64? It's impossible," Fudge said.
In a statement to CBC News, Skinner's spokesperson said that the workforce reduction plan was something negotiated through the union, AbitibiBowater, and the workers.
"The provincial government was not involved and we are unsure as to what level of involvement — if any — the federal government had. In the same fashion that we are working to ensure the company honours its obligations on other issues we will do so in this case as well," the statement said.
Mill workers meet with NDP leader
In the meantime, some former workers at the AbitibiBowater mill in Grand Falls-Windsor told provincial NDP Leader Lorraine Michael that they've been abandoned by Premier Danny Williams and his government.
Workers who have been protesting since Wednesday — demanding that AbitibiBowater pay severance — said they haven't heard a word from the Tories.
The workers want the Williams government to front them some cash to pay for their severance.
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