A Quebec Superior Court judge has ruled that "insolvent forest products giant AbitibiBowater Inc. will not have to make special payments to unfunded pension plans". It would appear that the decision will result in a monthly saving of more than $13-million.
The CEP called the decision "regretable and profoundly unfair" and this decision will, no doubt, fuel the pension reform fire that has been smoldering for some time. Indeed, according to a Reuters report, while the Union has indicated that they would not appeal the decision:
The CEP called the decision "regretable and profoundly unfair" and this decision will, no doubt, fuel the pension reform fire that has been smoldering for some time. Indeed, according to a Reuters report, while the Union has indicated that they would not appeal the decision:
... but is worried that
the Abitibi case is the start of a major battle with the
federal government over how to protect pensions as more
companies are forced into creditor protection.
