CEP happy with AbitibiBowater’s Chapter 11 exit

The Communications, Energy and Paperworkers Union is applauding the news that AbitibiBowater is getting ready to exit bankruptcy protection.

Among the conditions of the restructuring plan was that the company will meet all of its future pension obligations. CEP Local 39 president Rick Zuback, who represents hundreds of workers at the Thunder Bay pulp and paper mill, says the pension issue was at the forefront of their negotiations throughout the long restructuring process.

But Zuback points out that this is just one hurdle in getting AbitibiBowater back to profitability. He said he is worried that the company could still slip back into bankruptcy protection in the future.

At one point, AbitibiBowater had a $1.3-billion deficit in its pension fund. Zuback warns that it will take a long time and many profitable years to replenish that fund.

Zuback added that it will take about 20 years to get the pension fund back up to 100-percent.