Pensioners at Northern Pulp in Pictou, N.S., will receive their full pension benefits after the company’s woodland assets sold at auction for $235 million.
The sale will repay the $37 million owed to the defined benefit pension plan for members of Unifor Local 440 at the mill, which closed in 2020.
“This is a small but important victory for all workers as the bankruptcy process typically places workers and their pensions at the bottom of the list of creditors or off the list entirely,” said Lana Payne, Unifor national president. “Current Northern Pulp pensioners can rest easier knowing their retirement is secure, and those who will retire in the future can now count on the pension they earned being there for them.”
Bankruptcy protection and pension recovery
Unifor represented 220 members at Northern Pulp before its closure and continued to advocate for them through the creditor protection and sale processes.
The union challenged company and government decisions that did not favour workers in the years since the mill closed, according to the union.
“The fact that it feels like a long-fought victory to protect workers’ pensions — deferred wages that were earned and saved — shows how awful the outcome usually is for workers as companies file for bankruptcy or close entirely,” said Jennifer Murray, Unifor Atlantic regional director.
Legislative changes coming in 2027
Unifor supported a private member’s bill that gives pension plan members super-priority during plan wind-ups and bankruptcy proceedings.
The bill received royal assent in 2023 but will not take effect until 2027.
“Being a member of a union and supporting unions is more important than ever as we continue to see new ways corporations will dodge their responsibilities and ignore their promises to workers,” said Murray.
Unifor represents 320,000 workers in the private sector across Canada.
