2009-05-04
06:54:58
A court in Quebec is expected to hand down a ruling today as to whether Abitibi-Bowater will be allowed to suspend payments to some of its pensioners.
The Montreal-based forest products giant which has applied for bankruptcy protection in Canada and the U-S, says it can't afford pension top-ups for staff who wish to retire early.
The Communications, Energy and Paperworkers Union says the newsprint producer reneged on a deal that would have allowed employees with 20 years of service to retire at age 57, instead of 58, with full pension benefits.
The company is asking the courts to allow the company to suspend the payments until a restructuring is over.
