AbitibiBowater and Quebec make deal to protect employee pensions

Quebec has struck a deal with AbitibiBowater to protect employee pensions.

Quebec's pension agency will allow AbitibiBowater to make reduced pension contributions while it continues its restructuring effort. Abitibibowater has also agreed to freeze dividend payments if the pension accounts fall below 80% solvency.

The deal is conditional on the company maintaining its Montreal headquarters while ensuring that Quebec benefits from 60% of all maintenance and value-added projects.

Only AbitibiBowater's 6,000 employees in Quebec are covered by this deal, and not the 2,000 that work in other provinces.

Source:

Quebec offers pension deal to Abitibibowater (Toronto Sun)