Labour talks go down to the wire
The collective agreement expires at midnight Saturday. Pensions remain at the heart of the talks, with the union vowing to resist any company effort to end the current defined benefit pension plan.
While union president Rolf Gerstenberger and company spokesperson Trevor Harris would not comment for this article, information bulletins and other material issued by the union throw some light on the negotiations.
One item by negotiating committee member Tim Blackborow, released by the union last week, said the company is pushing to: change the pension plan to a defined contribution scheme for future employees; eliminate pension indexing; change the $70,000 limit on post-retirement health benefits; and reduce cost of living allowances, vacation and other benefits.
Blackborow wrote that giving in to those company demands amounted to current workers selling out future employees and retirees.
“A defined contribution plan divides us,” he wrote. “If we allow a defined contribution plan, we are saying that my future brothers and sisters do not deserve what I receive. … Do you think the company wants a defined contribution plan because it’s better for the workers? They do what is in their best interest, not ours.”
A defined benefit pension pays a retiree a fixed amount usually based on a percentage of pay multiplied by years of service. A defined contribution plan pays based on the amount saved and what it has earned by being invested.
