Kip Powick Posted October 11, 2003 Share Posted October 11, 2003 http://www.torontostar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1065823810592&call_pageid=968350072197&col=969048863851 Link to comment Share on other sites More sharing options...
Sky High Posted October 11, 2003 Share Posted October 11, 2003 Ouch. That can't be good news for anyone. Link to comment Share on other sites More sharing options...
Stickle Posted October 11, 2003 Share Posted October 11, 2003 My biggest fear is that if there was ever an agreement on this whole issue and we do emerge from CCAA is that Robert and company will go back to their old ways of throwing money at routes that just shouldn't be there in the first place. I'm extremely worried about the pension as that is my money in retirement. The senior team at AC don't seem to view it as a critical issue. I'm just not sure that we are going to make it out of CCAA with the same executive team. If they stay in place it will be just more of the same old. Link to comment Share on other sites More sharing options...
Guest Operation Bomberclad Posted October 11, 2003 Share Posted October 11, 2003 Its a sticky wicket, for sure. From my POV, if I manage to hang on to my job- then I am facing years of wage cuts to support a full pension of behalf of senior people and eventually see a lower pension because I couldn't contribute as much due to a lower wage. One good thing about having a Teamster's pension, by the way is that it is seperate from the company, though you don't get a tax rebate for making contributions by the way it is reported on a T4. There is yet another small problem to be worked out, but at least the company is obliged to pay into a pension and not touch it instead of using it as a hedge against losses. Link to comment Share on other sites More sharing options...
John S. Posted October 11, 2003 Share Posted October 11, 2003 stickle, when you write " . . . .The senior team at AC don't seem to view it as a critical issue. . . . . " it gave me two ideas. First - How'd you come to that conclusion? And Second- If you are correct does that mean that the senior team at AC dosen't have the same worries about their pension assets in the CCAA process? Link to comment Share on other sites More sharing options...
Guest neo Posted October 11, 2003 Share Posted October 11, 2003 "From my POV, if I manage to hang on to my job- then I am facing years of wage cuts to support a full pension of behalf of senior people and eventually see a lower pension because I couldn't contribute as much due to a lower wage." Depending on how this all plays out, that is an accurate description of the situation. Current and future employees may wind up 'subsidizing' the pensions of retired and soon-to-retire employees. But there are good arguments to be made as to why that's a reasonable thing to do, if no better alternative can be found. Re: your pension being separate from Air Canada's corporate finances... it's not a Teamster's thing, but something that employees, union and non-union alike, can negotiate with their employer. For instance, the (former) AirBC pilot's pension was out of the company's hands entirely. The pilot and employer each contributed 4 1/2% of salary to a plan that was administered by the pilots collectively. A note of interest: If my memory serves me correctly (John S. can confirm) the person on the company side who negotiated that AirBC pension was Ian (Rusty) Harris. Mr. Harris didn't do it out of consideration for the employees, but because if the plan went sour at some point, he didn't want to personally be on the hook for a pension shortfall. (Mr. Harris personally owned 15% of Air BC at the time.) Looks like he made the right choice. Also, to the best of my recollection, contributions you make to a pension plan via payroll deduction, even one that isn't administered by your employer, will have to be reflected on your T4 in some way because it's (non-taxable) income. But even if it weren't shown on the T4, you would simply provide CCRA with your receipt for the contribution and deduct it from your taxable income on your tax return. Either way, you're going to get all the benefit of the deductions coming to you. neo Link to comment Share on other sites More sharing options...
Guest cabo Posted October 11, 2003 Share Posted October 11, 2003 The Teamsters pension is good as long as you retire with it. Don't leave early and pull your funds from the Teamsters as you will only get about half of what was contributed due to their "formula" system. Link to comment Share on other sites More sharing options...
Beth Posted October 12, 2003 Share Posted October 12, 2003 OB: If you could clarify one part of your post for me please.... "but at least the company is obliged to pay into a pension and not touch it instead of using it as a hedge against losses." How does the Teamsters' pension differ from the others at the negotiation table in that regard? How are your contributions from the mother company any more guaranteed than another union's? We at CUPE also have a separate plan, and the company may not touch the existing funds. AC is obligated to make contributions when the plan is in deficit. However, what they are negotiating is an extension to their outstanding contribution obligations due to their current financial woes. Personally, I think they are using it as a 'hedge' against losses, especially as I believe that this was already agreed upon as part of our contract concessions. It irks me to see how the rules can change from day to day without proper regard to negotiated contracts - particularly when the ink is still drying. Link to comment Share on other sites More sharing options...
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