06 March 2010

Union tracking former Hollinger employees
to safeguard benefits, pensions

Conrad Black's holding company in bankruptcy protection;
future uncertain for Southam, Thomson, Sterling retirees

CWA Canada is enlisting the help of Locals across the country in its search for former or retired members who worked for a newspaper in the Southam, Thomson, Sterling or Hollinger chains.

More than 3,000 former employees of Hollinger Canadian Publishing Holdings (HCPH) have to be tracked down by a Toronto law firm that is representing their interests in bankruptcy court proceedings involving their benefit and pension plans.

Pertinent
Lump of Coal
Brian Brennan, a former employee of the Calgary Herald, asks on his blog: "Why is the mainstream media not covering this story?" He writes that "there are many more questions that demand immediate answers" such as: "What happened to the $3.5 billion that Hollinger received for the sale of its newspapers to Canwest in 2000?"


Facebook page
Brian Brennan has set up a Facebook page for former Southam employees.


Arnold Amber, director of CWA Canada, says the national union is working with Koskie Minsky LLP to protect the rights and livelihoods of former and retired members who worked at any of the newspapers purchased by media baron Conrad Black. They include major dailies such as the Vancouver Sun, Edmonton Journal, Ottawa Citizen and The Gazette in Montreal.

HCPH, which sold off those newspapers and is now essentially an empty shell, was recently granted an extension of its bankruptcy protection to April 15 to restructure an assortment of benefit and pension plans.

Ernst & Young, appointed by an Ontario Superior Court judge to oversee the restructuring under the Companies' Creditors Arrangement Act (CCAA), reported that HCPH administers two unfunded retirement plans, other post-employment benefit plans and six registered pension plans.

The accounting firm, in a letter to retirees just before Christmas, said all pension and benefit payments were continuing in their normal course.

Amber says there is a "general belief that the main Hollinger pension plan is in good shape and has enough funds to meet all its ongoing commitments. But there are other smaller Hollinger pension plans that might not be adequately funded. They are the HCPH pension plan for employees of newspapers formerly owned by Thomson, two other plans for employees of Sterling newspapers and the Journal Publishing Employees' Pension Fund."

CWA Canada will be following the court proceedings closely, says Amber. "We want to make sure everything is being done to protect our former members, but we also have concerns about the health benefits our retirees may get in the future. They could be reduced or, even worse, eliminated."

Koskie Minsky will deal with any issues that affect post-employment and post-retirement benefits, other than registered pension plan benefits. The law firm has set up a web page for HCPH retirees which it will update as information becomes available.

"Pension benefits from the registered pension plans are a separate issue from health benefits and supplemental pension benefits," the law firm explains on the web page. "We are advised that the pension fund of the registered pension plans is part of a trust fund which continues to operate even though HCPH filed for CCAA protection. We have been advised that the company is currently obtaining an updated actuarial valuation of the registered pension plans to determine the funded status of the pension plans. We will be provided with that valuation when it is complete and will report further to all retirees at that time."


CWA Canada is asking that contact information for any former or retired members who worked for any of the old chains be sent to Marj Botsford at head office: mbotsford@cwa-scacanada.ca