Government doing everything it can to protect Wabush Mines pensions: minister
Officials with the Newfoundland and Labrador government are meeting with nervous Wabush Mines pensioners this week, with one minister saying the government will do what it can despite a process that is now before the courts in another province.
Information sessions for concerned workers are being held in light of complicated bankruptcy proceedings unfolding in a Quebec court.
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A recent Quebec Superior Court ruling allowed Cliffs Resources to stop paying into the pension plan while they try to restructure, despite objections from Newfoundland and Labrador.
Service NL Minister Dan Crummell, who is responsible for oversight of the pensions issue, said what is in the plan right now is protected, but a lot depends on the outcome of the court process.
In the meantime, he said his government is doing everything it can to make sure Cliffs Resources still makes the pension payments.
"We've been keeping the company's feet to the fire," he told CBC's Labrador Morning.
"They made over $60 million in contributions to these deficits over the last few years, and while the plan is still currently in deficit, both the plans are in the 80 to 90 per cent funded ratio."
Cliffs Resources closed Wabush Mines in 2014, resulting in the loss of about 500 jobs. The shutdown also eliminated health and life insurance benefits for pensioners as of June.
It is estimated about 20 per cent of the workers' pension fund could be lost if Cliffs fails to restructure.
Crummell said while the province is keeping the pressure on Cliffs, it hasn't been easy getting information from the company.
"We have reached out to Cliffs to find out exactly what their plans are, and we're still not entirely clear exactly what they plan on doing," he said.
"They have not indicated their intentions. We'll continue to be proactive in areas where we can be, and we'll continue to act when things become much clearer.
The meetings with the Wabush Mines pensioners are set for late Monday afternoon at a church in Wabush, with one-on-one meetings set for Tuesday.
