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Friday, March 12, 2010 ..:: Economy » CEP Pensioner Win over ::.. Register  Login
 CEP Pensioner Win over AbitibiBowater Minimize

THUNDER BAY, ON --------  May 4, 2009  -------  Communications, Energy and paperworkers Bowater Thunder Bzyunion (CEP) at AbitibiBowater (TSX:ABH) have won court decision that Abitibi Bowater had no right to unilaterally rescind pension benefit improvements that had been negotiated in a collective agreement prior to the newsprint giant entering bankruptcy protection

Justice Clement Gascon ruled that the forestry company's efforts to unilaterally amend the collective agreement of current workers was illegal. "None of the arguments (by AbitibiBowater) justify the illegality of the gestures it made," Gascon said Monday in his verbal ruling.

Gascon said changes to the collective agreement can only come through negotiations.

Gaetan Menard of the Communications, Energy and paperworkers union praised the ruling as a complete and total victory.

The union's next move is an attempt to convince another judge to prevent the company from stopping to make contributions to its underfunded pension plans.

The union asked Gascon on Thursday to force the company to respect a written agreement that allows staff to retire at age 57.

The forestry and newspaper giant is currently under court-ordered protection from bankruptcy while it negotiates with creditors in the U.S. and Canada. AbitibiBowater shares haven't traded since April 15.

There is a Abitibi Bowater mill in Thunder Bay,

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