LongTimer V Posted May 2, 2003 Share Posted May 2, 2003 The possibilty of Air Canada getting a lot of cash due to the bid by MDNA,could they not use this monies to up lift the pension shortage. Us old timers,and the people who have retired befor us would feel a little more comfortable with that resolved. IMHO the pension proposals put forth by Air Canada is a NO DEAL,"BUT" if the monies were used for the pension plan my vote would change.Anybody know if this could happen. Link to comment Share on other sites More sharing options...
Guest Oracle Posted May 2, 2003 Share Posted May 2, 2003 I see your point and you have every reason to be concerned but I see this as a very narrow and self-serving viewpoint. In my opinion this is one of the main problems with AC........how can the company help and protect me. Socialism at it's best. Link to comment Share on other sites More sharing options...
dagger Posted May 2, 2003 Share Posted May 2, 2003 The Aeroplan bidding war is not likely to change much with the pensions. Whatever is required of AC by the courts re: pension will not have to do with whether AC gets a different Aeroplan partner. The problem is that CIBC has a million Aerogold credit cardholders. Maybe it's more. Each card is a little profit generator for the bank and for Aeroplan. If a new credit card company gets the deal, it will start with ZERO Aeroplan credit cards, and have to build a whole business. So while it may offer to pay twice as much for points, two times ZERO is ZERO. It would take a year or two to build up enough cards - say, 500,000 - to generate the same kind of profit the CIBC card does right now. If you read the comments of the judge, he is very skeptical of any other bidder than CIBC. Farley certainly understands the picture. As for the pension issue, I expect it will be resolved in negotiations, with the probable outcome being the more progress achieved on lowering operating costs, the more top-up money goes into the pension plans. I'm not saying there won't be some pension adjustments, just that they will likely spare the current retiree or soon-to-be retiree, and focus on lowering benefits for those who haven't paid much into the plan yet. In the end, however, I submit that it is more advantageous to pensioners current or future that AC continues as a going concern. In a liquidation scenario, there isn't likely to be much additional money going into the plans once the secured institutions pick the carcass clean. Link to comment Share on other sites More sharing options...
LongTimer V Posted May 2, 2003 Author Share Posted May 2, 2003 I and a lot of other employees were led to believe that when Air Canada deducted the money from my check every month that i would be able to retire with a livable pension.I guess i was a fool for trusting them.I could have done better myself. Link to comment Share on other sites More sharing options...
LongTimer V Posted May 2, 2003 Author Share Posted May 2, 2003 With the rebounding of world economies would this not change the value of the pension plan upward.And if that happens,all i see is the company reaping the benefits again at the expense of the retirees and the soon to be. Link to comment Share on other sites More sharing options...
Guest Oracle Posted May 2, 2003 Share Posted May 2, 2003 Hopefully most of the monies will be available to you.......I would feel the same way. Unfortunately, almost every time I check-in or board the aircraft I have very little sympathy or faith in the company. Could they be more harsh and unfriendly? Link to comment Share on other sites More sharing options...
Guest Max Continuous Posted May 2, 2003 Share Posted May 2, 2003 >> As for the pension issue, I expect it will be resolved in negotiations, with the probable outcome being the more progress achieved on lowering operating costs. << Wouldn't changing to an employee self directed plan not be more cost effective to AC, rather than continuing with a defined benefit plan? It's had to of cost AC $M's over the years to administer the Pension and Estates department of the airline. Link to comment Share on other sites More sharing options...
Guest Virtual Posted May 2, 2003 Share Posted May 2, 2003 You should check what the government is doing with your CPP money, as well. Seems that not all is necessarily what it should be. Link to comment Share on other sites More sharing options...
dagger Posted May 2, 2003 Share Posted May 2, 2003 It depends on the rule of the plan. If markets soared tomorrow morning, pensions wouldn't even be an issue. If they switched to a definited contribution plan, as opposed to definded benefit plan, they would not reap any rewards from rising markets. There are numerous possible outcomes to this issue. Link to comment Share on other sites More sharing options...
dagger Posted May 2, 2003 Share Posted May 2, 2003 That's a reasonable presumption on your part, but there is more than one reasonable outcome to this issue. I believe the pension matter will be settled with a compromise - I am less certain about the rest of the labor negotiations. Link to comment Share on other sites More sharing options...
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