Newsprint maker AbitibiBowater and union reach tentative labor deal

AbitibiBowater and union reach tentative deal

TORONTO — The world’s largest newsprint maker, AbitibiBowater, says it has reached a tentative labor deal with the majority of its unionized Canadian workers, which could help the insolvent newsprint giant emerge from bankruptcy protection later this year.

David Coles, national president for the Communications, Energy and Paperworkers Union of Canada, said Monday that the agreement requires about 4,000 Canadian workers to accept wage concessions to enable AbitibiBowater to continue as a viable company.

AbitibiBowater has been operating under court protection from bankruptcy in the U.S. and Canada since April, 2009.

Union members are expected to vote on the contract by the end of the month.