Happy New Year

2010

Merry Christmas and a Happy New Year

Pensioners send message to Whitehorse meeting

OTTAWA – Finance ministers meeting tomorrow in Whitehorse on pensions are being urged to deal with the plight of tens of thousands of pensioners who will see significant benefit cuts as their employers face bankruptcy.

The union representing forestry workers and the Nortel pensioners association – two organizations that speak for those pensioners -- have today sent a letter to the finance ministers asking them to “make sure we don’t abandon pensioners and other workers, who through no fault of their own, face major cuts to their retirement and replacement incomes because their employers took refuge in the bankruptcy courts.”

The Communications, Energy and Paperworkers Union of Canada and the Nortel Retirees and former employees Protection Canada (NPRC) are proposing a solution to protect orphaned pension plans that offers a win-win situation for companies, workers, retirees and governments.

They are calling on for a National Pension and Investment Fund to be jointly or distinctly run by federal or provincial regulatory bodies for pension plans. The fund turns on the idea that the pension plans of employers facing bankruptcy be allowed to continue to exist in a trust fund, rather than being terminated. The fund would be administered with a long-term perspective, as are the CPP and QPP. This requires government support and regulatory approval, but no cash infusion. The NRPC has taken the NPIF concept to the Ontario government asking them as a matter of urgency to establish an Ontario Pension Orphanage with day-to-day operations administered by a government agency.

“A string of bankruptcy filings since January -- from Nortel, to forest giants AbitibiBowater and Fraser Papers, and most recently Canwest, has made it alarmingly clear that employers can legally up and walk away from their pension obligations,” says CEP President Dave Coles. “They can hide behind bankruptcy legislation to take pensioners money and pay off investors.”

“But what’s even more alarming, is that governments at all levels have been slow to take advantage of a relatively simple solution that would help us all sleep better at night.”

Don Sproule, National Chair of NRPC said: "In order to protect pensioners whose plans are in imminent danger, it is vital that Finance Ministers act immediately to prevent plans from being wound up, and to amend bankruptcy laws to give pensioners higher priority. This way pensions can be protected and refinanced without negative impact on the public purse".

“The future of many vulnerable retirees is at stake,” concludes Mr. Coles. “These are people who are already living on a tight budget, many are in ill-health and these cuts will drive them into poverty and despair. Hopefully the finance ministers will give this proposal the serious consideration it deserves.”

To see a copy of the letter sent today from Don Sproule and Dave Coles or visit www.cep.ca.

For more information: Dave Coles 613-299-5628; Don Sproule, NRPC, National Chair 613-266-9336 sproule.nrpc@gmail.com or Tony Marsh, NRPC Media Relations 613-832-4817 mediarelations@nortelpensioners.ca

Telco decision violates Telecommunications Act: Union

OTTAWA -- Canada’s largest telecom and media union has condemned the Conservative government’s decision to abandon Canada foreign ownership restrictions on telecom companies as “a sellout of Canadian interests” and “an illegal affront to Canadian democracy.”

“This decision is a sellout of Canadian national interests and a betrayal of Canadian culture,” said Communications Energy and Paperworkers Union National President Dave Coles today in response to the government's decision to overturn the CRTC rulings on Egyptian-owned Globalive.

“It is clear that this decision violates the Telecommunications Act, which the Conservatives have now declared will be enforced only if and when they feel like it,” said Coles. “In straight forward terms, this decision is illegal and an affront to Canadian democracy.”

“Mr. Harper must be reminded that he presides over a minority government which has no mandate to change the character of Canada. A bill to eliminate our foreign ownership restrictions would not be supported by Canadians and it is highly unlikely it would be adopted by Parliament. If Mr. Harper wants to change Canada and sell out our telecom and cultural sectors to foreign investors, he should call an election and tell Canadians what he intends.”

Forest union to defend pensioners in bankruptcy court tomorrow

The president of Canada’s largest forestry union will tell Fraser Papers tomorrow in Ontario Superior Court that its proposed restructuring plan to emerge from CCAA protection will not fly unless there is greater fairness for pensioners and workers.

Dave Coles, Communications, Energy and Paperworkers Union, will be available for media interviews at the Ontario Superior court:

Thursday December 10
8th Floor - 330 University Avenue, Toronto
12 Noon or adjournment, whichever comes first

“The restructuring plan proposed by the company takes care of Brookfield Capital and the investors, and it takes care of the Government of New Brunswick, but it expects pensioners and workers to accept brutal cuts to their pensions,” said Coles.

“This plan requires the approval of the union, but there will have to be more fairness before this flies.”

The restructuring plan that goes before the court tomorrow could see pensioners lose as much as 40% of their pensions.

“The situation at Fraser Papers shows the unjustness of Canada’s pension and bankruptcy laws and why they must be changed,” said Coles.

More information: Dave Coles - 613 299-5628

N.B. FORESTRY PENSIONERS TO RALLY AT LEGISLATURE

FREDERICTON, N.B. -- Forest workers and pensioners will gather in front of the N.B. legislative assembly in Fredericton on Tuesday, December 8, at 1:00 p.m. to demand government support for a pension trust fund that would protect the pensions of Fraser Papers’ retirees and others whose employers have filed for bankruptcy protection.

New Brunswick government officials were receptive to the trust fund proposal when they met with leaders of the Communications, Energy and Paperworkers Union on Nov. 17, but the government has so far refused to take any action.

“There is very little time because the proposed restructuring of the company and cuts to pensions will be before the courts in Toronto on Dec. 10,” says CEP President Dave Coles. “I don’t understand what the hold up is -- our proposal requires no government cash bailout.”

Adds CEP Atlantic Region Vice-President Ervan Cronk: “It is a plausible solution to the growing pension crisis that requires governments to put aside their ideologies and support pensioners who have worked all of their lives to help build the forest industry and the N.B. economy. But the New Brunswick government must act now, before it is too late.”

MORE INFORMATION: Ervan Cronk, CEP Atlantic Region Vice-President (506) 857-8647 or (506) 434-3488