Wabush Mines worker pensions to be slashed, says Steelworkers union
Wabush Mines pensioners stand to lose a lot following a court ruling in Quebec, according to the Steelworkers union that represents them.
The Quebec Superior Court ruled last week that U.S.-based Cliffs Natural Resources does not have to continue making special payments to its pension plans until bankruptcy procedures for its Canadian operations are over.
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Union representative Gilles Ayotte says the pension plans are already underfunded.
He says he doesn't know what will happen, but pensions could be cut to about 80 or 85 per cent of what's currently being paid.
"That would mean losing money, and being in trouble," he said.
"You may have to sell your car, you may have to sell your house and more into an apartment building. You won't be able to pay the bills anymore."
He also said that kind of loss would be particularly painful for retirees, because the company already has announced it will be canceling their health and life insurance benefits.
He says the union is still looking for accurate information numbers on the pension plan, but so far, it isn't getting them.
"We don't know how big the damage is," he said.
"We've been asking for this information for a long time so far and they keep dragging us ... but they are not ready to let them out."