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CAW appeal goes ahead
Appeal court to hear Local 2304's case on severance

Doug Ashbury
Northern News Services

Yellowknife (Aug 23/00) - An Ontario court of appeal has set Nov. 27 to hear CAW Local 2304's severance appeal.

The Local represents approximately 180 hourly workers at Giant Mine.

The union is appealing an earlier Ontario Commercial Court decision which determined receiver PricewaterhouseCoopers was not responsible for pension costs incurred between April and December of 1999.

The union argues the receiver, by recognizing certain articles of the collective agreement, acted as a successor company and therefore it should be responsible for all articles of the collective agreement between Local 2304 and Royal Oak Mines. Local 2304 is seeking 11 months severance (six months pay in lieu of mine closure notice, plus eight weeks under the collective agreement, as well as 12 weeks pay included in NWT rules).

This issue is related to, but separate from, the union's efforts to get full pension payments from the company-funded plan. Current and future Giant pensioners will take a hit of about 18 per cent on their pensions.

Initially, it was thought the pension fund was underfunded by 25 per cent.