Court stops bankrupt AbitibiBowater from reneging on pension deal

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Unionist
Court stops bankrupt AbitibiBowater from reneging on pension deal

Great news:

[url=AbitibiBowater">http://www.financialpost.com/news-sectors/story.html?id=1561963][=b... can’t deny pensions: judge[/][/url]

Quote:
Insolvent AbitibiBowater Inc. must abide by its collective labour agreement and allow its unionized workers early retirement with full benefits, a Quebec Superior Court Judge ruled Monday.

The Montreal-based forestry giant's decision to unilaterally suspend a new provision of the collective agreement that improved its workers' pension plan is "illegal," Justice Clement Gascon said in a ruling.

"This ruling sends a clear message that collective agreements must be respected" during bankruptcy protection proceedings, Gaetan Menard, an executive with the Communications, Energy and Paperworkers Union of Canada, said in an interview.

This is extremely significant, given the apparent powers of courts in the U.S. to suspend collective agreement provisions for companies in bankruptcy.

 

remind remind's picture

Unionist do you know if this will apply in BC too?

Unionist

Remind, I honestly have no idea. We'd need to read the full decision. But I am unaware of any court in Canada that has ever overturned the terms of a signed collective agreement just because an employer was in CCAA protection or otherwise insolvent.

remind remind's picture

Thank you.