AbitibiBowater shares audio recording of Richard Garneau’s address at annual meeting
June 9th, 2011 | Posted in Financial News | 9 comments »
After closing its doors to the media this morning, AbitibiBowater has released an audio recording of President and CEO Richard Garneau‘s address to the annual meeting today, without Garneau’s corresponding powerpoint presentation.
Items of note from Garneau’s bilingual address:
- Debt burden reduced by 88% – from $6.8 billion in 2007 when the companies merged, down to $850 million at the time of emergence from creditor protection
- A further $185 million will be eliminated from the debt burden through the sale of the companies hydro assets in Ontario, to be completed by the end of the second quarter
- Financial losses shared by various stakeholders as a result of the creditor protection filing are about $8 billion
- The company’s former shareholders lost some $2 billion in value, as compared to the share valuation at the time of the merger
- Unsecured creditors and suppliers lost about $6 billion
- Active employees will be impacted by $95 million salary cuts and other reductions – mostly achieved through proactive negotiations with union leaders
- Going forward, AbitibiBowater will be mindful of the lessons learned throughout restructuring
- Company will benefit & thrive by engaging its workforce, by acting with integrity, by setting goals, and by measuring progress, and by responding faster and better to market changes
- Canadian operations have significant challenges, especially in Quebec, to be competitive in North America and globally.
- Canadian mills are at a disadvantage due to the strong Canadian dollar, high labour costs, and fibre costs
- On average, the cost of wood delivered to the mill in Quebec is 91% higher than to the company’s U.S. mill
- Labour costs per hour worked are 5% higher in Ontario, and 7% higher in Quebec, compared to labour costs at the company’s U.S. operation because of the strong Canadian dollar
- Company is committed to investing and improving its Canadian operations , but only where they have the support of provincial and regional governments, employees, as well as where there is a clear business case.
Source:
Listen to the address here (.mp3)
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9 Responses to AbitibiBowater shares audio recording of Richard Garneau’s address at annual meeting
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BARF! Nice job patting themselves on the back for being thieves. Will move forward with integrity,sure would love to see that
That all sounds about right……and as I’ve said to you before…Canadian company, Canadian dollar….will be more than the US greenback for many years….a decade at least, so arrange business plans accordingly. Also, us “union members” do only consider the concessions given as a means to strenghten the company, as such a loan to get you back on your feet. We have seen the profits and will continue to do so until such time as we negotiate again.
Whie “active employees will be impacted by $95 million salary cuts and other reductions – mostly achieved through proactive negotiations with union leaders”, exactly how much in reductions has the senior leadership team been faced with. Zilch. In fact, one of the biggest thieves walked out of the door with a very healthy severance package (aka millions) for his so-called “leadership” during the restructuring program. He must have been laughing all the way to the bank.
Achieved by proactive Union leaders, eh ? …nice…think i’ll pass on what I’d really like to say…whens the next restructuring plan ?
Why is it that it’s the thieves at the top who expect everyone else to have or to behave with integrity. It’s these very same thieves who didn’t behave with integrity in the past who have caused a mojority of these problems through their leadership. Why do these thieves never have to pay the penalty for being wrong? It’s actually humourous that we have to sign a yearly code of ethics while the thieves at the top engage in criminal behaviour.
They were able to accomplish so much because the unions let them. Idiot Coles gave crummy advice and they picked us apart. Look at Thunder Bay and Gatineau?? Basic human instinct is to worry about your own individual hide. When that happens they have already won. Look at the misguided fools at Gatineau who called and early vote, bent over, and STILL didnt save their jobs. All they did was make it worse for the rest of us. At least the batteling bastrads at MERSEY still have some backbone left.
Hasn’t everyone had enough of this “YOU all have to give, while WE take , take, take shit yet???? When are the locals in the rest of the mills going to finally say, “Enough is enough!”…. we are done giving! Its Your turn , you pompous, fear mongering, Bloodsucking upper echelon , who is more deserving of jail time than they are million dollar bonuses & golden parachute packages, that are currently received for running this company into the ground & ruining thousands of their workers, retired & current, and their supply companies & business partners!!???….Just wait, soon as this name change is completed they shall reward themselves with another round of, “how many millions do you want?”….. wake up Brothers & Sisters! National won’t help!… but we CAN put a stop to this!..
Right on reduced,those locals in TB have to start showing they got b*ll.
So they are only going to invest in the Canadian operations that will let them do what ever they want. That being Provincial and Municipal Gov’t's and the employees(Union). The Federal Gov’t wasn’t included because they already give them what ever they want. They threaten Gov’ts, the Power Company and the employees with closure any time they want their own way. How many times can they cry wolf ? I guess it woked with the CEP so why not try it with everyone else.
Workers here have seen their take home pay lessen between $700 and $800 a month. Only to see this company make over $8 million in profit, almost 28% of the $30 million the corporation made in one quarter. But yet the company is still trying to carve away at the very employees who sacrificed so much and allowed them to get rich. They don’t honor their agreements, they screw over the share holders and continue to threaten and de-humanize the workers. Now their threatening the Gov’t and the Power Company with closure because they don’t want to pay their bills. Next it will be the tax man and if they get their way then those employees along with Joe Public will have to pay those power hikes and taxes, that they don’t have to, on their already reduced income. Their taking the Union to court because they want more consessions, they don’t want to honor their CA and want to smash the Local into little pieces
They have the nerve to talk about integrity. Well their is no honor among thieves. Change your name if want Abitibi but a rose by any other name is still a rose, or should I say a weasel by any other name….