The U.S. Bankruptcy Court approved Cenveo’s motion to enter into new collective bargaining agreements (CBAs) with Bindery Union Local 4c and Press Union Local.
As previously reported, “The terms of the New Union CBAs were a result of extensive discussions between Cenveo and the Unions. Furthermore, Cenveo has previewed the terms of the New Union CBAs with the Creditors’ Committee and its DIP Lenders, and neither objected to the proposed terms. The New Union CBAs, if approved, will maximize stakeholder value. More specifically, the New Union CBAs have a shorter duration than the prior collective bargaining agreements, reduce hourly wage rates, and implement the SubPay program.”
In addition, “The New Union CBAs also permit Cadmus and Cenveo to integrate equipment and employees from closed Cenveo sites in a cost-efficient manner, without regard to seniority. While the New Union CBAs provide significant benefits to Cenveo these agreements are not without costs, including the requirement that Cadmus increase its contribution to participating Represented Employees’ medical costs. That said, the New Union CBAs are favorable to Cenveo and its stakeholders and Cenveo.”
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