AbitibiBowater, Inc. (fka ABWTQ)

[Pitt77]

Act for Abitibibowater: a sometimes violent clash of ideas

(Quebec) An examination of the law for AbitibiBowater spread over 15 years what it owes to the pension fund of its workers is done in an atmosphere of confrontation.

The Parti Quebecois (PQ), as well as groups representing tens of thousands of pensioners, denounced as "unacceptable" the draft legislation. He said he did carry on the shoulders of pensioners and future pensioners of the restructuring of the multinational. The Company and the Union of Communications, Energy and Paperworkers (CEP), the largest in the forestry sector, however, share the same reply. The law is not perfect, they say, but that's it or a bankruptcy that would have cost 5,000 jobs in Quebec and slashed benefits.

Yesterday, a parliamentary committee, the clash of ideas most violent occurred between PQ François Rebello and President and CEO of the company, Richard Garneau. The elected PQ railed against the fact that AbitibiBowater, which only pay

$ 50 million a year to replenish its pension fund rather than $ 160 million, awarded to its executives $ 6 million in bonuses and shares worth $ 200 million.

The member of La Prairie has claimed that bonuses and shares are placed in trust. He advocated that active, as the 22 dams owned by the company, suffered the same fate. If a bankruptcy before the 15-year period, it will go to pension funds, he said the CEO Garneau. "If things go well, as you say, you kosher your bonus and your actions. "They can buy their yacht, their cottage or car of the year, in 15 years, echoed Mr. Rebello. Meanwhile, the money will be guaranteed. "

François Rebello did not against the spread of payments, but against the lack of safeguards to protect the pensions of bankruptcy. He accused the government of neglecting, among others, the possibility to request shares in exchange for money needed by the company. These shares would be repurchased when things go well. The boss of AbitibiBowater would not answer if he would put premiums, shares and assets in a trust. "It's a false debate." But Richard Garneau said that without relief payments to pension funds, "the risk was very high" to see all the plants being liquidated. The agreement with Quebec may not be reviewed, he believes.

Mr. Garneau has insisted that annuitants have "100% of their pension" as AbitibiBowater mills turn. He stressed that the firm acknowledges that "a debt of $ 1.3 billion to our retirees.But creditors also pay dearly for Recovery, "a net loss of $ 6 billion" from them, he estimated.

Associations

Two of the most important groups of retirees have harshly criticized the legislation put forward by the government. For FADOQ - formerly the Federation of the Golden Age of Quebec - and the Federation of Pensioners' Associations of Quebec, "is a law that puts at risk the pension fund.

For the president of the Federation of Associations, Jacques Beaudoin, these are not alternatives that are missing it is "political will". One avenue would be to create an insurance plan. The law also has its supporters. The vice-president of CEP Renaud Gagné argued that "real debate" does not cover bonuses and stock to executives, as shocking as it is, but "on measures to save jobs and pensions."

CEP "does not contend that the agreement [with AbitibiBowater and the government] is a victory," but that in the difficult economic environment of market pulp and paper, so he had better get . In an interview, Mr. Gagne said it was too late to review the agreement that allowed the company to raise.

Included at the end of the day, Minister Julie Boulet (Employment and Solidarity) has wanted to close any doors. The law and the agreement with AbitibiBowater primary goal "to better preserve the pensions and jobs." Trust for premiums or assets, the shares the government retirement insurance, "we'll look all that. You have to see the impacts. I do not have enough elements to decide "

http://www.cyberpresse.ca/le-soleil/affaires/actualite-economique/201105/24/01-4402461-loi-pour-abitibibowater-un-choc-didees-parfois-violent.php?utm_source=Bulletin%20CBP_Soleil&utm_medium=email