CWA Canada will fight for members at Saltwire

CWA Canada President Carmel Smyth says the union will be monitoring the situation closely after Saltwire Network Inc. announced today that it is seeking creditor protection.

“Our members and retirees can rest assured that we will do everything possible to protect their jobs, wages, and pensions,” she said.

The media union represents staff at Saltwire publications the Halifax Herald and Cape Breton Post, through the Halifax Typographical Union (CWA Canada Local 30130) and the Sydney Typographical Union (CWA Canada Local 30460). The union is also awaiting certification to represent staff at the Charlottetown Guardian and the Summerside Journal Pioneer.

It’s unclear what exactly will happen but it’s important to know the facts.

Saltwire has not filed for bankruptcy. It is not in trusteeship. It has applied for protection under the Companies’ Creditors Arrangement Act (CCAA), which means a monitor will be appointed. It continues to operate and run its own affairs with some “protections” from its creditors.

The company is still bound by its collective agreements except to the extent it has asked for relief or variance from a contractual obligation. In the normal course, future obligations, including wages and pension contributions, will be paid in full. 

In regard to pension payment obligations, the pension plan is underfunded and Saltwire has been required to make special payments. These payments will likely be suspended because of the CCAA filing. Under pension legislation, the obligation will remain and cannot be reduced under this CCAA process. When the process is completed, the suspension of this debt would be lifted, and payments would resume. However, if a bankruptcy were to happen, the pension funding obligation would be subject to that process and could reduced or wiped out, as it would be a debt that would have less priority than the debts owed to secured creditors like banks.

SaltWire, which owns 23 newspapers across Atlantic Canada, has more than $94 million in debt, with roughly a third of that owed to its lender, Fiera Private Debt. SaltWire also owes more than $7 million in unpaid HST to the Canada Revenue Agency, while the Chronicle Herald owes $2.6 million for missed pension payments.

The company said filing for creditor protection will help ensure its long-term sustainability.

Fiera said SaltWire has been “demonstrably mismanaged” and has withheld money from employees and pensioners.

CWA Canada is the country’s only all-media union, representing nearly 6,000 workers, including at the CBC, The Canadian Press, and newspapers and other companies coast to coast.