Province supports AbitibiBowater pensioners
Last Updated: Friday, December 11, 2009 | 1:53 PM NT
CBC News
The Newfoundland and Labrador government plans to try make the federal government understand the concerns of former AbitibiBowater workers who fear their pensions will be cut.
"AbitibiBowater's left a big void here," said Shawn Skinner, the head of the province's AbitibiBowater task force. "We've stepped in as a provincial government to fill that void. We'll continue to do that where we see a role for us to do it."
Provincial finance ministers are scheduled to meet with federal Finance Minister Jim Flaherty in the Yukon next week.
Skinner says one of the hot topics will be pensions.
Hundreds of retired workers of AbitibiBowater in Grand Falls-Windsor and in Stephenville were told by a union leader that they could lose a substantial portion of their pensions if AbitibiBowater is bankrupt or restructured early in the new year.
AbitibiBowater closed its Grand Falls-Windsor facility, about 400 kilometres west of St. John's, last year. The mill in Stephenville, western Newfoundland, closed in 2005.
Communications, Energy and Paperworkers union president Dave Coles was in Grand Falls-Windsor and Stephenville last month and told pensioners that their incomes could fall by 30 per cent if AbitibiBowater goes under unless the federal government steps in to protect them.
The company has been under court protection from bankruptcy since April, while it tries to resolve its money trouble.
Coles said AbitibiBowater's pension plan will be $1.3 billion short of meeting its obligations if the company folds.
Skinner, who is also the province's minister of innovation, trade and rural development, doesn't want people to forget that AbitibiBowater is still in business.
"The pension fund is the responsibility of AbitibiBowater," he said.
Pension regulations are enforced by the federal government.
Skinner the province will be pushing it to help AbitibiBowater pensioners when federal and provicial finance ministers meet in the Yukon.
"The best way to get clarity on that, is to try to get all the provinces and territories, with the federal government at the table," he said. "[We need to] come up with a regulatory regime that we all can agree on in the interest of the workers, and then implement that."
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