Local retirees caught in Hollinger CCAA filing

Some retired former Local 2000 members may be adversely affected by the restructuring of Hollinger Canadian Publishing Holdings Co. that is currently underway.

Based on documents filed with the Ontario Court of Justice as part of an application under the Companies Creditors’ Arrangement Act (CCAA), it appears that some Medical Service Plan and other payments for medical benefits paid on behalf of Local 2000 retirees by Hollinger Canada could eventually be reduced or eliminated.

Any former Local 2000 member who receives a pension through the Hollinger Canadian Publishing Co. Retirement Plan can take comfort from the healthy financial shape of that plan. It is fully funded.

It is also important to note that the PNG pension plan is healthy and not affected by the Hollinger CCAA filing or Canwest’s current financial problems. The PNG plan is a standalone entity that is jointly administered by the trustees appointed by Local 2000 and the company.

However four smaller Hollinger Canada pension plans have significant unfunded liabilities. These are:

  • The Hollinger Canadian Publishing Holdings Co. Pension Plan for the Employees of Newspapers Formerly Owned by Thomson Newspapers;
  • Sterling Newspapers Company Pension Plan for the Employees of Newspapers Formerly Owned by Thomson Newspapers;
  • The Hollinger Canadian Publishing Holdings Co. Plan for Employees Formerly Owned by Sterling Newspapers;
  • The Journal Publishing Company Limited Employees’ Pension Plan.

Any former Local 2000 member who is receiving a pension from one of these four plans is at risk of having their pension reduced as a result of the CCAA process. Please contact Gary Engler at the union office if you are a member of one of these four plans.

(In addition, two Hollinger management retirement plans are unfunded. These are: The HCPH Co. Executive Retirement Arrangements and HCPH Co. Divisional Allowances /Top-Up Plan.)

Anyone affected by the Hollinger Canada restructuring should have received a letter from Ernst & Young dated Dec. 18, 2009, informing them of the company’s CCAA filing. The letter states that the court has appointed the Toronto law firm Koskie Minsky LLP to represent the interests of over 3,000 former Hollinger employees whose benefits payments may be affected by the CCAA filing.

Local 2000 is currently planning a joint strategy with our National Union regarding this CCAA filing. Please check this website regularly for updates.



This entry was posted on Saturday, January 2nd, 2010 at 3:05 pm and is filed under Local News.