The workers of the idled NewPage Port Hawkesbury mill in Nova Scotia have filed a lawsuit for $168 million against the company.

The employees, represented by the Communications, Energy and Paperworkers (Local 972) are owed severance, pensions, and other benefits.

The claim was filed in the U.S. Bankruptcy Court on Tuesday.

Because NewPage is in a period of creditor protection, claim is contingent on the company being wound up and it being unable to pay the debts that it owes the union, its members and the pension plans.

“It doesn’t put us on a secured creditors list or any of those things we would like to see happen, but it puts us in the lineup for any money that may be available by the end of the process,” said Steve MacDougall, CEP Local 972′s recording secretary.

Breakdown of the $168 million

$127 million – mill division pension plan
$14 million – clerical pension plan
$14 million – woodlands pension plan
$7.16 million – severance to mill employees
$557,000 – severance to clerical division
$456,000 – severance to woodlands division
$5 million – long-term disability benefits

The lawsuit also states that the administrator of the pension plan is also filing a claim against the company for the funding deficiencies.

Source:
NewPage workers suing company for $168M (The Cape Breton Post)