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Unifor locals representing VIA Rail Canada Inc. employees have opened bargaining in Montreal as contracts are set to expire for more than 2,000 members. Members identified a number of key issues for contract negotiation, including a strengthened pension plan, according to a press release.
“Members at VIA Rail have a two-tiered pension plan, awarded by the arbitrator and argued for by the company,” said Jerry Dias, Unifor national president, in an email to Benefits Canada. “Employees hired before 2014 contribute to a defined benefit plan, which is in surplus. The benefit is 1.7 per cent up to the [year’s maximum pensionable earnings] and two per cent above the YMPE times their years of credited service to a maximum of 35 years. Members contribute 8.2 per cent up to the YMPE and nine per cent above the YMPE towards their pension.”
“While these differences in benefits are already vastly unfair, additional changes add insult to injury,” he said. “The so-called hybrid plan eliminates pre-retirement spousal benefits, puts conditions on indexation and prevents any transfers or lump-sum payments to the DC side of the plan.”
Article (English only) https://www.benefitscanada.com/news/via-rail-unifor-collective-bargaining-includes-strengthening-pension-plan-137925
