The Communications, Energy and Paperworkers' Union of Canada announced on Sunday, that AbitibiBowater Inc. has entered into a tentative deal with the labor union. The deal is aimed at the recovery of the company from bankruptcy.

The labor union has shared that it reached the agreement after the company agreed to drop its move of eliminating the pension plan that could lead to a reduction in the pension benefits by 25%.

Rejoicing over the company's move, Union President Dave Coles said, "It's not every day that you recommend to the membership that they take a step back to save a company".

Since April, Abitibi has been working in U. S. and Canada under court protection from bankruptcy.

The deal will involve workers from 23 local unions in Eastern Canada. The union members will be casting their votes on the deal in the week starting from March 15.