Resolute Forest Products’ workers in Ontario and Quebec stand firm on refusing pension cuts
February 19th, 2013 | Posted in Financial News | 12 comments »
Workers at Resolute Forest Products mills in Ontario and Quebec today demanded that Quebec’s pension regulator, the Régie Des rentes, and the company reach an agreement to resolve the solvency deficit in the pension plan without any cuts to benefits.
“The company and the Régie must work out a plan in the coming weeks to solve the funding problem for the pension plan. Our members sent a strong message today that we will not agree to any cuts in pension benefits,” said Communications, Energy and Paperworkers Union President Dave Coles.
CEP local union delegates from 10 Resolute mills met in Montreal yesterday to review developments with the company’s traditional defined benefit plan covering about 3,500 active employees and 25,000 retirees.
Under the terms of an agreement with the Régie Des rentes, the company is obligated to increase its special payments after the solvency ratio for the plan fell in 2011. The company and the pension regulator are currently holding discussions on “corrective measures” to cover a more than $500 million additional deficit, on top of the $1.3 billion pension deficit that the former AbitibiBowater owed when it emerged from bankruptcy protection in 2010.
“The company and the Régie must remember that workers gave up wages and benefits on the understanding that the company would be responsible for the traditional plan without cuts to benefits,” said Coles.” And we also established a new pension plan for the future which eliminates any risk for the company.
“Resolute and the Régie both have a responsibility now to find a solution that maintains the long-term commitments to our members and retirees.”
Source: CEP
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So sorry to hear that Resolute is trying to screw the very people who made all the money for the rich jerks who run it.
Good luck!! All the best…those greedy bastards dont care one grain of salt about employees. As AL said above…the employees made them rich….But they forgot that long ago. Sadly….its the employees that pay the price. Fight on and good luck brothers.
about time the cep national started fighting for our pensions instead of making deals with the companies
I would like to know who let them get into the pension money in the first place.
Mark , the government allowed them to take pension holidays . The employees are not allowed to do this . One way street to allow the companies to make even more profits on the backs of the employees !!
I want to know why I have to worry about my pension after serving for 37 years??
Because the company AND the government do not care about you ! Politicians are told what to do by businessmen , not by the people that elected them !!!
The retirees paid into the pension plan as a condition of employment for over 30yrs. and that is our money not Resolutes. Resolute had no business touching our pension funds we all signed a contract when we retired stating a set amount for mine and my wifes life and Resolute is not living up to their end of the contract. Resolute says they can’t afford to pay the pension deficit yet the CEO’s get large bonus up to 4 million dollars they also sold off assets for millions of dollars and had money to buy Fibrek so much for having no money to put in the pension plan. The sad part is the Gov’t and the CEP National union is helping Resolute get away with it.
Two big problems with pensions is government. The laws have to be changed so that pensioners are first in line when a company goes bankrupt instead of at the back of the line. Second off, pension rules allow these companies to take pension holidays when times are good so when times are bad the pensions take a bigger hit. There should be no pension holidays and companies should have to pay into the pension plan no matter what. With all the pension problems out there, the Conservatives are more worried about setting up religion departments for some reason???
Right on brother
This is a great way to get out of the pension business.
Tough talk from a guy who has yet to back-up other strong messages.