Nackawic pensioners strike deal with province

Some pensioners formerly employed with the St. Anne-Nackawic mill have come to an interim agreement with the provincial government over their benefits, pending a trial scheduled for November.

More than 300former millworkers have been receiving different levels of pension payments since 2004, when the mill closed suddenly with its pension fund between $20 and $30 million in the red.

The provincial government had worked out a deal that older pensioners would receive 83 per cent of their pension, but their younger counterparts those who were still working when the mill closed but eligible for retirement would be paid just 60 per cent.

The deal struck on Tuesday will allow everyone to be paid the same: 83 per cent of their full pension allowance. The payments will continue pending the outcome of a trial in November that will challenge the provincial government's right to split the pension fund unevenly between the pensioners.

"We were able to discuss the matter with the government and it was agreed that they would in fact increase the people who were only getting 60 per cent.They would increase them to 83 per cent, although they didn't do it retroactively," said Pete Mockler, alawyerrepresenting the pensioners.

The battle has taken a financial toll on the town of Nackawic, which depends almost entirely on the mill for employment. More than 400 people lost their jobs when the mill closed, and approximately half that many were hired when the mill reopened under new ownership in 2005.

The town is now filled with real estate signs offering homes at fire-sale prices.

Pensioner Craig Melanson says that's because the people who used to work at the mill arehaving to sell their homes, and anger is being directed at the politicians.

"The political parties have not offered any kind of solution for this. Tory, Grit or NDP, none of them have stepped up to the plate and said that they're willing to try to do something to solve this problem," Melanson said.

The problem isprovincial pension legislation does notrequire private companies to keep their pension funds fully funded, which means company owners can dip into the money set aside for employee retirement to help run the business.

The pensioners may have solved their financial problems somewhat, but Melanson says the battle is not over. His group has filed a human rights complaint against the government, claiming they werediscriminated against when the province allowed the mill pensionfund to beinequitably distributed among the retirees.

"I'm going tofight it right through as long as I have to," he said."We got our lawyer engaged to take us through all the way to the Supreme Court of Canada. And if we don't go there, maybe the United Nations. I don't know, but we'll go as far as we have to go in order to have the justice we deserve."