Union reaches deal with Abitibi

The Communications, Energy and Paperworkers Union of Canada announced yesterday it had reached a tentative deal with Abitibi-Consolidated at midnight Tuesday.
The five-year agreement covers some 4,500 workers in Ontario, Quebec, and Newfoundland, and also is expected to serve as a pattern for talks affecting 30,000 pulp and paper workers elsewhere in Canada.
“This is a contract for our times,” CEP president and chief negotiator Brian Payne said in a statement released yesterday.
“This settlement protects and enhances our defined benefit, final earnings pension plan,” he added.
Payne noted the union not only fought back a company demand to introduce a defined contribution pension plan, but negotiated improvements to the existing defined benefit plan.
If the deal is ratified, the pension benefit formula will see successive increases in 2005 and 2009.
“This pension package is a breakthrough which leads the North American pulp and paper industry,” Payne said.
“I want to acknowledge the efforts and willingness of the company to negotiate this agreement,” he added. “This shows that pattern bargaining works for both sides.
“It reflects our mature relationship, and understanding of the issues and challenges we face.”
The tentative settlement also includes wage increases totalling 11 percent over its term and major improvements in group benefit plans such as dental, drugs, paramedical services, vision care, life insurance, and health care.
Job security provisions have been renewed and language protecting CEP members from losing employment due to contracting out of work also has been strengthened.
The proposed settlement also has a provision for five weeks’ vacation after 17 years of service.
In a message to CEP members who will be voting on the deal, Payne acknowledged their contribution in gaining it by noting they had voted 95 percent in favour of strike action if necessary.
“The bargaining committee unanimously recommends acceptance of this proposed settlement,” Payne said. “It is a fair settlement for the membership and one that the industry can easily live with.”
In a Canadian Press article yesterday, Abitibi-Consolidated spokesman Denis Leclerc said the agreement would offer “stability amid market uncertainty.”
“As soon as we can transform an uncertainty to a more stable aspect, we’re very pleased,” he remarked. “At least this is now stable for five years if it’s ratified by our employees.”
As noted, the terms of deal also will be forwarded to other paper companies such as Bowater, Domtar, Tembec, and Kruger so they can come to similar agreements with their employees.
The previous contract expired April 30.
Talks to reach a new agreement between Abitibi-Consolidated and its unionized employees at its mills in central and eastern Canada began May 7.
They broke down May 22.
The last contract was reached in 1998 after a five-month strike.