zipped Posted April 24, 2003 Share Posted April 24, 2003 - For immediate release (Toronto: 24 Apr 03) - CAW opposes Air Canada's preferential treatment of creditors before pensioners The Canadian Auto Workers will appear on Friday, April 25 at 3:30pm, before Ontario Superior Court Justice Farley to oppose Air Canada’s attempt to place pension contributions at the bottom of the payment list, after GE Capital and the Canadian Imperial Bank of Commerce. “It is legally and morally wrong, that the pension plan would be treated as an ordinary creditor”, states CAW president Buzz Hargrove. “We strongly oppose Air Canada agreeing with the CIBC and GE Capital that their investment should have a priority over the investment of workers and retirees.” Air Canada took a pension holiday in the years 2001 and 2002, and should now pay over $150 million into the pension plan. On April 3, 2003, before the House of Commons Standing Committee on Transport, Hargrove requested the federal government provide a loan guarantee to ensure pension funds are adequate. “Air Canada is attempting to wash its hands of its legal and moral responsibility as pensions form part of an employee’s compensation that are the same as deferred wages”, stated Hargrove. The federal government had offered Air Canada up to $300 million of interim financing and should make the same offer for the pension plan obligations. CAW lawyers will argue Friday that it is inappropriate to place the CIBC and GE Capital Canada Inc. at the front of line before earned pensions – the deferred wages of thousands and thousands of workers. CAW agrees with the statement made Tuesday, April 22 by the Office of the Superintendent of Financial Institutions that the amounts owed should take precedence over money owed to other creditors. Further the OSFI believes pension plan money is not subject to the restructuring proceedings. In spite of repeated requests by the union, Air Canada is still withholding the 2001 pension plan actuarial report. For more information... Gary Fane, Director - Transportation, CAW-Canada Contact phone: 416-495-6548 Link to comment Share on other sites More sharing options...
Powermatic Posted April 24, 2003 Share Posted April 24, 2003 Just keeps getting better and better..... Link to comment Share on other sites More sharing options...
bm330 Posted April 25, 2003 Share Posted April 25, 2003 This issue has the potential to be the back breaker in any restructuring plan from AC. Grumpy pensioners are more likely to take a small bird in hand than rely on the golden goose that isn't laying any more eggs. My understanding of CCRA is only one party at the table has to want out to shut it all down. Link to comment Share on other sites More sharing options...
Guest flyersclub Posted April 25, 2003 Share Posted April 25, 2003 9,500 ac retirees now. Link to comment Share on other sites More sharing options...
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