OTTAWA, Feb. 29, 2012 /CNW/ - The Communications Energy and Paperworkers
Union of Canada has filed legal actions in Quebec Superior Court
against the directors of the former Fraser Papers, owned by Brookfield
"Our legal struggle on behalf of the pensioners and workers of Fraser
Papers has now begun," says CEP President Dave Coles. "This is about
fairness for retirees and workers who lost almost 40% of their
pensions. The directors of Fraser Papers must now be held to account."
"We will announce additional legal actions in the coming weeks that
address the injustices to our pensioners and members in New Brunswick,"
"CEP contends that the directors of Fraser Papers were grossly negligent
in their duties to our members," says CEP Quebec Regional
Vice-President Renaud Gagné.
"The company took care of its shareholders but pensioners and workers
lost their retirement security. We are asking the Quebec court for
justice for these retirees and workers."
The suit filed in Quebec Superior Court yesterday for $11.7 million is
in response to the investment decisions of the directors of the former
Fraser Papers. Fraser Papers was majority-owned by Brookfield Asset
Management and operated pulp and paper mills at Thurso, Québec and
Edmundston, New Brunswick before the company was restructured under the
Companies' Creditors Arrangements Act (CCAA) in 2010.
A majority of Fraser's debt was to its employee pension plan and the
restructuring resulted in large cuts to retiree pensions.
The union has also assisted Fraser retirees and family members organize
in Quebec and New Brunswick in the "Victims of Brookfield Association"
which has a Facebook Page and a Twitter account that tells the personal
hardship stories of the Fraser pensioners.
SOURCE COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION OF CANADA
For further information:
Dave Coles, 613 299-5628 or Renaud Gagne, 514 916-9364 or 514 384-9000 ext. 2255