Abitibi-Consolidated Announces Ratification of 5-year Collective Agreement with CEP A (TSX) ABY (NYSE) MONTREAL, July 17 /PRNewswire-FirstCall/ -- Abitibi-Consolidated Inc. (TSX: A NYSE: ABY) today announced the ratification of a 5-year collective agreement with the Communications, Energy and Paperworkers Union of Canada (CEP), representing approximately 4,500 of its members employed at 12 Company Divisions located in Quebec, Ontario and Newfoundland. The ratification follows the agreement in principle reached in Montreal on July 6, 2004 between both parties. "These negotiations presented several challenges, but we were committed to working together," said Viateur Camire, Vice-President, Human Resources and lead negotiator for the Company. "We are pleased to have reached a sound and fair agreement based on a positive relationship with the Union and our employees." Highlights of the agreement include: - Term: 5 years, from May 1, 2004 to April 30, 2009. - Wage increases: an average of 11% over 5-year term - - Year 1: $0.70/hour; - Year 2: 2.5% increase per employee; - Year 3: $0.60/hour; - Year 4: 2% increase per employee; - Year 5: $0.60/hour. - Pension: 10-year agreement on pension improvements increasing Company labour costs by 3.2% over the first 5 years, plus an additional 2.15% effective in 2009. Employee contributions will increase gradually from the current average of 4.9% of annual salary up to 7.5% by 2009. - Benefits: the agreement provides for reasonable improvements and increase in employees contributions in the area of group insurance. - Job security: renewed and updated provisions to existing clauses. The total impact on the Company's labour costs over the 5-year term of the agreement will be 14.3%. Prior to the previous contract's expiry, the Union and the Company undertook a new approach to the overall process. First, negotiations on contract language clauses as well as all local issues were undertaken before main agenda talks began. These local negotiations were successfully concluded prior to the expiry of the 1998-2004 collective agreement. Then, final round discussions centred on monetary issues. This new approach helps support the Company's ongoing employee relations' efforts. "Abitibi-Consolidated remains committed to being the lowest-cost producer in North America," stated John Weaver, President and CEO. "The challenge for our employees is to increase productivity and maximize our margins per tonne." Abitibi-Consolidated is a global leader in newsprint and uncoated groundwood (value-added groundwood) papers as well as a major producer of wood products, generating sales of $5.4 billion in 2003. With over 15,000 employees, excluding PanAsia, the Company does business in approximately 70 countries. Responsible for the forest management of 17.5 million hectares, Abitibi-Consolidated is committed to the sustainability of the natural resources in its care. The Company is also the world's largest recycler of newspapers and magazines, serving 17 metropolitan areas with more than 11,200 Paper Retriever(R) collection points and 14 recycling centres in Canada, the United States and the United Kingdom. Abitibi-Consolidated owns or is a partner in 27 paper mills, 22 sawmills, 4 remanufacturing facilities and 1 engineered wood facility in Canada, the U.S., the UK, South Korea, China and Thailand. DATASOURCE: ABITIBI-CONSOLIDATED INC. CONTACT: Investors: Lorne Gorber, Manager, Investor Relations, (514) 394-2360, ; Media: Marc Osborne, Manager, Corporate Communications and Media Relations, (514) 394-2340,

Copyright