ACTION NEEDED ON ABITIBIBOWATER PENSION SHORTFALL: ALLEN

ACTION NEEDED ON ABITIBIBOWATER PENSION SHORTFALL: ALLEN
Tuesday, Feb 2, 2010

OTTAWA – The government must act to protect the pensions that Canadian retirees have worked hard for, says New Democrat MP Malcolm Allen (Welland). Allen called on the government to meet with representatives of AbitibiBowater and the Communications Energy and Paperworkers Union to discuss regulatory changes that would resolve the pension shortfall threatening workers’ retirement security.

“Flaherty promised back in November to meet with AbitibiBowater and the union, but despite Parliament being prorogued, he somehow hasn’t found the time,” says Allen. “AbitibiBowater pensioners, workers and their families need more than just empty promises; they need to know that the pension plan they contributed to during their working lives is there for them when they need it.”

AbitibiBowater, Thorold’s largest industrial employer, is currently under bankruptcy protection as a result of the economic recession. Around 800 retired and currently-employed workers and their families face financial and emotional hardship because their pension plan is underfunded by $1.3 billion.

In the event of bankruptcy, the pensions that retirees and workers are counting on would be reduced by an average of 25%. AbitibiBowater management and CEP have proposed a pension trust to protect retirement incomes, and are calling on the federal government to make the necessary regulatory changes.

“Canada has a national pensions crisis that demands national leadership,” says Allen. “The government must step up and ensure that retirees have the respect, dignity and retirement security they deserve.”