Executive Council
Innovation, Trade and Rural Development
July 22, 2009
Provincial Government and CEP Finalize Agreement
to Deliver on $35 Million Commitment
The Government of Newfoundland and Labrador and the Communications,
Energy and Paperworkers Canada (CEP) Union, in collaboration with the
International Brotherhood of Electrical Workers (IBEW), have concluded
extensive consultation and entered into a formal agreement to begin
making more than $35 million in payments to displaced workers for
severance and allowances suspended as a result of AbitibiBowater�s
creditor protection, as well as to silviculturists and loggers for
severance. This agreement launches the process of displaced workers
being able to complete claim applications and receive severance and
other allowances.
"As a government, we made a commitment on day one to ensure that the
workers and communities of the Central Region are protected to the
greatest extent possible," said the Honourable Danny Williams, Premier
of Newfoundland and Labrador. "This formal agreement lays the foundation
to ensure that impacted individuals receive well-earned financial
benefits and reduces the impact of AbitibiBowater�s actions and its
failure to provide benefits to its workers."
AbitibiBowater�s filing for creditor protection absolved it from
paying severance or making payments under its Work Force Reduction and
Supplementary Retirement Allowance programs until financial arrangements
are made and agreed upon by the courts. The drawn-out nature of this
process precipitated the Government of Newfoundland and Labrador to
intervene and provide entitled severance and various payments.
"Our union is very pleased and grateful to work with the Government
of Newfoundland and Labrador to deliver severance and certain
entitlements to workers in the province�s Central Region," said Dave
Coles, President, CEP Canada. "These workers were abandoned by the
company that closed its mill and refused to pay required severance,
along with being abandoned by their Federal Government. Our members
recognize that the Government of Newfoundland and Labrador did not
abandon them, and has come to their aid when they need it the most."
Following the May 19 announcement in Grand Fall-Windsor where the
Provincial Government committed to providing severance to displaced
workers (both union and non-union) and for loggers and silviculture
workers, immediate steps were taken to design and implement the details
to roll out payments.
The CEP engaged the professional services of Grant Thornton LLP, a
national accounting firm that will implement the initiative and provide
important financial counseling services to recipients. Consultation also
included how to develop a comprehensive and user-friendly application
process, along with issues surrounding taxes, counseling services, and
other administrative requirements.
"Delivering a solution that best accommodates the needs of more than
800 individuals, including union, non-union, and management personnel,
and has a value of more than $35 million is no small undertaking," said
the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural
Development. "All parties have worked closely and made tremendous
progress. With an initiative of such magnitude, due diligence and
extensive collaboration with the CEP and IBEW has and must be taken.
Over the coming days, I strongly encourage impacted individuals to have
the appropriate documentation in place to ensure that their claim can be
quickly processed."
Displaced workers will be contacted by local union officials to
schedule a group information session, individual counseling sessions,
and distribute relevant applications.
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