Three Tier Pension Offer - Bargaining Team Update
The bargaining team met with Canada Post the week of December 10 to 14 2012 in Ottawa. The Corporation tabled a number of regressive proposals that would diminish the Collective Agreement going forward. Of note is the pension proposal as outlined below.
Members who can retire with an UNREDUCED pension within five years of ratification of a new collective agreement would be able to do so and there would be NO changes to the current pension provisions for those members.
- Retirement at age fifty-five with thirty years of eligible service; or
- Retirement eligibility for an unreduced pension at age sixty with two years of eligible service
All other members currently employed at the date of ratification of a new collective agreement would be eligible for a defined benefits program. However, members would now have to work longer in order to be able to retire with an UNREDUCED pension.
- Retirement eligibility at age sixty with thirty years of eligible service; or
- An unreduced pension at age sixty-five with two years of eligible service
For all workers hired after ratification of the Collective Agreement, Canada Post proposes to introduce a new defined contribution plan that would be administered by Sun Life. Newly hired workers would not have access to a defined benefit plan. The plan that CPC is proposing is mediocre and inferior to that of many other large employers. There would be a sliding scale formula for voluntary matching contributions that would rely on a combination of years of service and age.
We know there are more cost effective defined benefit alternatives that the Corporation could have proposed.
The Corporation has taken a mean spirited approach and appears determined to create a divisive workplace where people who work side by side doing the same or similar work would receive completely different benefits and contract provisions.
Next bargaining dates are set for January 28 to February 1, 2013.
Date Modified : 2012/12/14