Workers at AbitibiBowater pulp and paper mills in Eastern Canada voted 63.5 per cent to approve a new five-year collective agreement.
The agreement covers 3,000 CEP (Communications, Energy and Paperworkers Union of Canada) workers in local unions in Nova Scotia, Quebec and Ontario that includes mills in Thunder Bay, Fort Frances and Iroquois Falls.
In a May 10 CEP press release, the union said the deal provides cost reductions for the company, which is under creditor protection, but preserves pensions for workers and retirees.
In a statement, CEP National President Dave Coles emphasized the ratified deal is conditional on government approval in Quebec and Ontario.
The deal, which expires in 2014, maintains current pensions and accrued pension service but also includes a new jointly managed pension plan with 10 per cent employer contributions for future service. It also includes a 10 per cent wage reduction with wage increases resuming in 2012 and 2013.
"Workers are making major sacrifices for this company to survive, but we now expect the new owners and governments to invest in our future and to rebuild this company," said Coles.
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