Skilled Trades Association, CAW Local 199 St. Catharines (General Motors Unit) | ||||||
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 Thursday, May 01, 2003 - Richmond, BC Employees fight for pensions By Trudi Beutel years may come crashing down the chaos that has overtaken Air Canada. The former Air Canada customer service agent is worried the money he socked into Air Canada's pension plan may be used to pay the airline's creditors. "You try to figure out how much money you need, how much you have, then, all a sudden, the things aren't there that you were counting on," said Speirs, a Richmond resident, who recently retired after 36 years service with Canadian and Air Canada. Speirs, 60, is one the floundering airline's 15,000 retired employees who receive their monthly income from Air Canada's pension plan. That pension fund was shorted an estimated $200 million contributions when Air Canada received permission 2002 to take a "payment holiday". Now, rather than pay back the cash, Air Canada applied last week to an Ontario court to use the money to restructure its business operations. That could leave the pension plan underfunded and employees empty handed. So while Speirs' monthly pension is flowing now, there's no guarantee the cash will continue. What's more, the $50,000 early retirement pay out Speirs expected March 31 never materialized. "Nobody knows where it is," he said. Speirs isn't alone quandary. Employees - 15,000 retired and 36,000 still working - have landed last place on the priority list Air Canada's creditors. The situation prompted a group Richmond-based Air Canada workers to fight back this week. Unions representing Air Canada's workforce paid a visit to Richmond Liberal MP Joe Peschisolido Monday to rally the feds behind a plan that would see the airline forced to repay the delayed pension contributions. The move would ensure Air Canada doesn't get away with using workers' pensions to prop up the company. They hope Peschisolido will listen given Richmond riding is home to about 5,000 Air Canada employees. "Richmond is full Air Canada employees," said Loretta Woodcock, the CAW's pacific regional vice-president who was among the group seven airline employees and union officials who met with Peschisolido. The group wants Peschisolido and other Liberal MPs to put $300 million loan guarantees back on the table for Air Canada. This would prevent the company from seeking survival cash from outside sources who, return, may seek more employee concessions. They also want Ottawa to exert more controls over "predatory" business practices which Air Canada uses to drive its competition out business. Undercutting ticket prices on money-losing routes contributed to Air Canada's filing for bankruptcy protection April 1, the group said. Peschisolido said whether or not the fed's offer loan guarantees is accepted is between Air Canada and Ottawa. He added, he and Vancouver-Quadra Liberal MP Stephen Owen have devised a plan that would see a portion various fees collected by Ottawa given back to the airline. "The plan is that government will forsake $40 million funds and that money would go to Air Canada," Peschilsolido said. Regardless, however, Peschilsolido puts the blame for Air Canada's current fiscal state squarely on the shoulders the company's senior management, citing employees are victims the mismanagement. "No one doubts this company has been mismanaged, but employees are not to blame," he said, adding the issue the company pensions is still under legal consideration. The solution to Air Canada's woes, said the Richmond MP, lies within the restructuring plan which strikes "a balance between being equitable and being efficient." And it doesn't include Ottawa increasing its regulatory authority over the airline. - 30 - Reproduced with permission the author. | ||||||
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