Agreement on Postmedia VBO

To: All Postmedia members

November 8, 2016

Re: Postmedia Voluntary Buyout (VBO) Program

Dear Postmedia members,

Your union, Unifor Local 87-M, reached agreement with Postmedia today on the terms of an amended Voluntary Buyout (VBO) Program.

As you know, we had several concerns about:

- the value of a VBO with a cap of 78 weeks in a situation where the company faces significant revenue and debt challenges;

- the opportunities for the employer to reduce the Retiring Allowance for a number of reasons, including violations of language on solicitation, competition, confidentiality, disparagement and alternative employment;

- the lack of continuation of pension accrual for the Retiring Allowance period; and,

- the ability of the union to grieve perceived violations of the VBO where former members may not receive all the funds to which we believe they are entitled.

We did not get everything we wanted. For example, we were not able to achieve pension accrual for the Retiring Allowance period or able remove the alternative employment clawback. But we believe we have improved the terms of the VBO.

It is important that you carefully consider the terms of this amended voluntary buyout offer, which should include outside financial advice, and decide whether or not to apply for it.

For some of you, it will fit into any transition plan you may have. For others, relying on the severance terms of your collective agreement may be a better option.

What Has Changed

Application Deadline

The application deadline has been extended to 12 p.m. local time on Friday, November 11, 2016. The company will distribute a new Voluntary Buyout document for union members.

Retiring Allowance

To address our concerns about an insolvency before the end of the Retiring Allowance (RA) period, which would jeopardize the full payout of funds, VBO recipients entitled to more than 52 weeks of allowance will now receive up to eight weeks of accelerator payments, paid in two-week instalments at the three-, six-, nine- and 12-month marks, depending on the length of their RA period.

That means, for example, that if you are eligible for 60 weeks of Retirement Allowance or more, you will get eight weeks of accelerated payment in four instalments paid within the first year.

And those accelerator payments will have no impact on the length of employee benefit coverage (basic life, supplementary medical and dental benefits). In other words, if you’re eligible for 60 weeks, then you will receive employee benefit coverage for 60 weeks.

The VBO contains “mitigation” — which means you end up with less money from Postmedia in the event you get alternative employment during the RA period.

While we were unsuccessful in eliminating mitigation, we have achieved some beneficial changes and details embedded in the agreement. Now:

- If you secure alternative employment during the RA period at the same income or higher, the RA payments stop and you get 50 percent of the remaining balance as a lump sum.

- If you secure alternative employment during the RA period at a lower income than your current salary, then you will pay Postmedia 50¢ for every $1 you earn for the full period of your Retirement Allowance. In other words, if you are earning $25 an hour at Postmedia and you find another job during your RA period that pays $15 an hour, Postmedia would claw back $7.50 an hour.

- If you were earning income from any source other than Postmedia in the 52 weeks before you leave, any equal income you earn from that source after you leave will be exempt from the clawback.

- However, if after you leave you earn more from that external source than you did in the 52 weeks prior to leaving, the difference will be subject to the 50¢ for every $1.

The new VBO has clear details on the rules surrounding alternative employment embedded in the agreement so that they can’t be changed unilaterally.

Confidentiality, Non-Disparagement, Non-Disclosure, Ongoing Obligations

Several VBO conditions that would have given the employer an opportunity to cease payments have been deleted, including language regarding non-disparagement, non-disclosure, non-solicitation, non-competition and much of the language on confidentiality.

Furthermore, we put a time limit on the conditions that remain. Specifically, the agreement not to disclose company secrets, including but not limited to customer, supplier, logistical, financial, research and development information, to any third party is for three years.

Grievances

The union will have the expressed right to grieve violations of the VBO and memorandum of agreement with the union if members feel they are not being paid according to its terms and conditions.

Respectfully yours,

Paul Morse

President

Cc: Brad Honywill, Michelle Arruda, Howard Law, Gary Ellis