Displaying items by tag: Fraser

At a demonstration organized by retired employees of the Fraser Papers mill in Thurso, Dave Coles, president of the Communications, Energy and Paperworkers Union of Canada, said the union will "take all possible legal and political actions to ensure that there is justice for Fraser Papers retirees." Coles said that the union's lawyers are examining grounds for a civil suit against the company over the administration of the pension plan.

"We believe that our retirees who lost 35% of their pensions are victims of mismanagement by this company, and we fully intend to ensure that they are held accountable for their actions," said Coles.

Fraser Papers, which is owned by Brookfield Asset Management, placed itself under the protection of the Companies' Creditors Arrangement Act (CCAA) last year. According to CEP, it was not obliged to pay into the pension plan to return it to solvency. From the outset, the union has denounced the fact that Fraser Papers has been "casting off all its obligations."

Fortress Paper purchased the Thurso mill while Fraser Papers was under creditor protection, and Fraser's Edmundston, N.B. mill was sold to Twin Rivers Paper Co.

In total, over 800 retired employees were affected when ownership of the kraft pulp mill in Thurso passed from MacLaren, to Noranda Forest and then to Fraser Papers.

CEP members at Fraser Papers' Edmundston mill have voted 69.3% to ratify an agreement to change the pension plan and complete the conditions required for the company to restructure and emerge from bankruptcy protection.

"This was a very difficult decision for our members but it was the least of two evils," said CEP Atlantic Vice-President Ervan Cronk, following ratification meetings held over the weekend.

"Bargaining into the wee hours of the morning, we were able to lessen the blow on pensioners and active employees," said Cronk. "The result is that they will realize about 10% more of what they would otherwise have been entitled to.

"But we have made it very clear to the company that we will be back to fight another day to restore pensions.

"Goverments must not be allowed to sit back on their heels while companies use bankruptcy protection laws to shed millions of dollars in debt on the backs of pensioners." "We have turned a page at Fraser Papers but we will continue the fight for justice," added CEP National President Dave Coles.

"The struggle at Fraser Papers revealed everything that is wrong with a system that allows companies like Brookfield Asset Management to make pensioners and workers the victims of restructuring."

The agreement at Fraser Papers will see an 8-year extension of Fraser's insolvent pension plan. This will require legislative changes by the New Brunswick government.

Fraser Papers Inc., the Canadian Energy and Paperworkers Union of Canada, the Government of New Brunswick, and other stakeholders, have agreed to the broad terms under which Fraser Papers will proceed to close the sale of its specialty papers business to a company sponsored by the secured creditors of Fraser Papers (Newco).

The agreement included proposed changes to the collective agreements at the company's Edmundston pulp and energy complex which will require ratification on or before March 10, 2010.

The company has filed the agreement with the Ontario Superior Court of Justice, and will work with its secured creditors and Newco to close the sale of the specialty papers business before March 31, 2010.

Under the terms of the purchase agreement, the unsecured creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the new company. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity interest in Newco while the Government of New Brunswick has agreed to convert its $35 million secured loan plus accrued interest into equity in the form of preferred shares of the new company.

Fraser Papers also announced that the Court has granted a further extension of its creditor protection to April 9.