Good morning, ladies and gentlemen, members of the Committee. Thank you for inviting us to appear.
At the Gatineau plant, the infrastructure is the industry flagship. It is one of the most modern plants in North America. I know that in Canada, the Gatineau plant is the most modern. In the last 20 years, $1 billion has been invested there, including a $400 million paper machine, a $180 million boiler, a TMP, or thermo-mechanical pulp, machine, at a cost of $150 million, and a $90 million de-inking machine. And there was an $18 million cogeneration unit three years ago. A power contract with Hydro-Québec provides for 20 megawatts for 20 years at a competitive rate. It's more profitable to sell than to buy.
In 1963, the Premier of Quebec, the Hon. Jean Lesage, negotiated a contract with the CIP paper company. It provided for 38 megawatts of power for 100 years. Today, that electricity represents some $12 million a year, and there are 96 more years left. The employer or the government brought the parties back before the courts in 2006 because there was a misunderstanding with respect to the contract negotiated in 1963. The multinational, called Avenor at the time and later to become AbitibiBowater, won its case. It was agreed that the contract would begin in 2006 and be effective for 100 years, until 2106. As we speak, it's in the river; it's dormant. People at the multinational were told it wasn't transferable and that it was associated with the Gatineau plant. If it's worth $12 million a year today, how much will it be worth 96 years from now? We're talking about billions and billions of dollars. That would wipe out the deficit of all of AbitibiBowater's 24 pension plans, which are $1.3 billion in the hole.
And there are other problems at the Gatineau plant. In 2007, they shut down a paper machine. The workers were subject to rationalization. We lost 171 unionized workers and 25 non-unionized workers. These same workers were the ones who funded the pension incentive measures, because the employer had abandoned them. We were taken hostage by the employer to ensure there would be joint participation in the Quebec government program, known as the ARTT, but the condition was that there be rationalization. So, in June of 2007, and again in December of 2007, we rationalized our working conditions; we did that twice in a single year. At the request of CEP locals in Eastern Canada, we asked that negotiations start up again in January and February of 2008, so that the multinational could secure a two- or three-year extension of the contract, with zero increase, and a job security guarantee was signed before the Dolbeau-Mistassini and Gatineau plants were shut down. They asked us for $62 million worth of concessions, when only three weeks earlier, some $60 million worth of bonuses had been paid out. Mr. Weaver, in particular, received $25 million. Here I'm talking about all the company's managers, and especially Mr. Paterson, Mr. Alain Grandmont, Mr. Rougeau, Mr. Girard and Mr. Wright. They all received bonuses and now they are doing it again with the $6 million, but that is just the continuation of what these white-collar criminals have already done.
Earlier, Mr. Paterson said they had shut down the least profitable plants. But let me tell you something: at the Gatineau plant, they did everything they could to make us look bad. All the plants where the value per tonne exceeded $500 were at risk. In November of 2009, we were producing paper at the Gatineau plant for $465 a tonne. In December of 2009, we produced it for $469 a tonne. The $4 difference was due to a change in chemical suppliers. No one sent the cavalry to save us. There was a shortage of staff, both on the union side and the employer side. No training was provided. One third of the plant had been emptied out, because of people retiring. But they never helped us. It's really too bad. I won't name any names.
The managers at the Gatineau plant asked for an assessment. They were told not to worry, that staff would soon be provided to them since plants were being shut down. The plants did indeed shut down, and at the Gatineau plant, they sent us people who were offered positions such as assistant director. They had a great time making us less efficient. We were told that we were losing orders, but it wasn't true. They took great pleasure in transferring orders to other AbitibiBowater institutions. They would group the orders that weren't profitable and pass them on to the Gatineau plant. So, we obviously were no longer profitable. It was unacceptable that we received no training or help. On top of that, they mixed up our orders.
In closing, I just want to make the point that the contract was renewed in 2009. The first meeting was with union reps and the AbitibiBowater negotiating team. There were 12 plants, two of which had shut down.
Immediately after saying hello to all of us, the employer stated that had he been able to shut down the Gatineau plant because of its liabilities, he would have done so. However, he didn't have the right to do that under Quebec legislation. But the employer simply circumvented the legislation and shut down the plant. In terms of liabilities, there are 1,828 workers, 1,447 retired workers, 381 workers who opted for late retirement and 21 people on long-term disability. The plant was shut down and we are convinced that it was because of the liabilities. Don't forget that the Gatineau plant absorbed everybody remaining from the former CIP plants in Temiscaming, Hawkesbury, Matane, Lachute, Trois-Rivières, Dalhousie, Maniwaki and Harrington.
Thank you very much.