Good news for GM retirees

The news gets better today, relatively speaking. In the GM restructuring plan sent to the provincial and federal governments today, the company secured pensions and benefits for retirees, as well existing jobs in Canada. For now, one should add. We don't have the fine print yet to ensure all benefits are guaranteed, but it's very good news for seniors.

A literal assault on pensioners has been taking place in our battered economy, the sector of the population least able to fight back. More and more companies talk publicly about the heavy costs attached to ex-workers and, increasingly, pension funds look about as reliable as all those bogus bank deals. Air Canada is the latest.

Clearly, pensioners must be protected across-the-board; they thought they had a deal before they retired to live on fixed incomes.

Comments

[Andrew The Lesser]

If more companies switched to defined contribution pension plans, both the company and the employee would be better off, the former by avoiding the potential liability associated with defined contribution plans and the latter with better and more flexible pensions.

[Denis Meloche]

Pensions and benefits for existing retirees should not be touched. These are the very people who built the successful auto industry we came to value. They should not be held accountable for the current woes. And active employees should not be considered responsible. But since they have a better chance of making plans for their retirements, they should be open to transitioning from defind-benefit to defined-contribution pensions and to setting aside money to pay for their benefits upon retirement. Legacy costs need to be reduced and gradually eliminated.

[David Oakland]

No - Sorry, this is not a good deal on the back of taxpayers to support GM retirees pensions when the MAJORITY of people have lost much of their pensions - this would create a "Have" and a "have not" society and very insulting to other people who have lost their entire retirement investments, savings and future, like we are not important but auto workers are special and better - if governments are to guarantee the auto pensions, they better guarantee everyones pensions, investments, RRSP's etc.. otherwise, they better say NO! Governments are there to represent the majority, and that is not what 36,000 retirees in Ontario represent - this is a special interest group lobbying to protect itself at the expense of taxpayers - we already pay for provincial government pensions forever - the auto pensions are not government and no better than anyone else - file for CPP and OAS like the rest of us - there will be much public backlash over this if it goes through!

[Doug Hayes]

Great now once again we non-union or self employed taxpayers have to dig deeper to support overpaid auto workers. What a country!!!!

[skyhawk]

I`m curious.there`s an article on the front page but no where to ask a question,so i`ll try here.can anyone tell me how "slashing " access to the product will help the situation ? GM says it`s going to "slash" 250 dealerships.if they "slash" the one near me,a GM truck driving guy,`till the bitter end,THAT`LL be the end ! how does depriving me of my dealership help ? and believe me,it`s NOT GM paying for those dealerships.the money they make GM dealers waste on STUPID ideas is unbelievable.they should leave running the dealerships to the dealerships.we`ve seen what a great job they`ve done with the plants,leave the dealers alone !

[ted, edward13131999@yahoo.ca]

well, a retired worker, line or white collar, and i mean reqular, like an office secretary on a small pension, ok, lets try and protect, but if my tax dollars go towards some executive retired on 300 thousand plus a year,i and many other will be screaming, particular when we have so many small companies with NO pension plan, this whole thing and i am sorry the newspapers are now in on it, is to try and starve off the inevitable, all the fat cats need to go, we need to help the little guy, not pay for corporate jets

[dunny 1234]

I strongly disagree with the government at ALL levels in handing my tax dollars to the BIG 3 auto manufacturers.
In the Globe and Mail today, Tony C. stated, Ottawa will not loan monies for pension issues. Here's the outragous part in the article ....Mr Lewenza's comment (CAW President)

Any actions the Canadian Auto Workers union takes will depend on what the United Auto Workers in the United States have agreed to, Ken Lewenza, CAW president, told a news conference last night.

Mr. Lewenza rejected calls for cuts to current pension plans, saying "I don't think it is necessary to go after the pockets of our pensioners."

BUT it's ok to go after Ontario taxpayers to flip the bill?
Let them FAIL, pensioners wake up.... nothing is guaranteed in life !!!

[Code Blue]

This should not come as a surprise to any retiree - the talk has been going on for many years. As a tax payer and financial planner I see many Canadians who have puny little non indexed pension plans with no potential for government hand outs. The boomers have done it again - I say let them pay it all out to existing retirees ( many who retired younger than the average teacher) and pension plan members and start again with a defined contribution plan.

[Ron Bragg]

Had G.M. handled the pension fund in a responsible manner this would not be an issue. In good times the pension fund developed surpluses and G.M. skimmed off the surplus to pad it's bottom line and pay executive bonuses. Bob Rae's gov't further added to thr problem in the earlt 90's by lowering the levels at which pension funds had to be maintained. G.M. is the ONLY Canadian auto company to have taken full advantage of this situation. Current pensioners should not be punished because of a lack of due diligence by their employer

[Paul DiSalvo]

My understanding is that we have been asked to spend $10 billion to save 7,000 jobs at GM. That works out to $1.5 million per job. Does not make any sense especially since the financial markets value GM's world wide value a $1.5 billion.

Let them go.

[Glen Baker St Catharines Ontario]

I have no pension and do not want the gov,t to support auto workers when all other industries are left out without help. What makes these people better than all other tax payors; this does not make sense and should never be considered by people elected to spend our taxes.
This is supposed to be a democracy , where is the fainess in this.

[G.Taylor]

Is it true that former employees, retired, did not pay anything into their pension plans? If true, then shouldn't they help out the government somewhat towards the bailout?

[John Hackert]

I've had losses in my RRSP too . Will the government please top it up like the auto workers? Also I don't want to make any more contributions and I want enough to retire at age 55. Oh I also want a deluxe medical plan .

[I.S. Anders]

Let's make sure we are talking apples to apples here. A very large number of the GM and Chrysler "pensioners" are under 55. Some are even under 50. Their pensions are based on 30 years of service - the auto industry's ridiculous "30 and out" formula. I can see tax dollars assisting the elderly - I can't support tax dollars supporting someone who is under 65 when the vast majority of Canadians work until 65. It is grossly unfair.

[J. Lorincz]

This is great news for our elders! GM is such an important part of Canada and I am glad to see positive news like this. I am sure the Japanese senior citizens appreciate it when Canadians buy Japanese cars. Thankfully, GM sells more cars in Canada than any other automaker. Most Canadians are compassionate.

[Michelangelo]

I like the idea of income equalization where the rich pay taxes which are redistributed to the poor.This stupidity is the reverse where rich auto workers are paid out of tax dollars contributed by poorer people.I guess I shouldn't be surprised because overpaid civil servants can now point to overpaid auto workers for their own wage settlements.These are the people combined with politicians(yes I mean you Mr Bryant and Mr Clement) who are pushing this giveaway to bankrupt companies.Time to vote with our feet.