Monday, August 31st15.0°C
26775
26337

GM Canada agrees to pay $9 million, restore retirement benefits

TORONTO - General Motors of Canada Ltd. has agreed to pay $9 million and restore most retirement benefits to nearly 3,300 salaried and executive retirees.

The proposed settlement will settle a lawsuit launched on behalf of the retirees, who saw their health and life insurance benefits cut or eliminated by GM when the automaker began major restructuring in 2008 and 2009.

Louis Sokolov, one of two lawyers representing the class members, said GM will use a $9 million fund to reimburse retirees for costs incurred between 2008 and August 31 when the benefits were cut. Most of the benefits will be restored beginning September 1. The deal applies to employees who retired between 1995 and 2011.

Sokolov said in some cases, retirees who had worked for the automaker for more than four decades saw their life insurance benefits cut from $100,000 to $20,000.

"When you have a group of 3,300 people, you have 3,300 different stories but the overwhelming story we hear from class members was that the cuts had detrimentally affected their retirement security," he said Friday. "It's a big deal to them to get that back."

A spokesperson for General Motors said the company couldn’t comment at this time.

The deal comes a year after a Superior Court of Justice ruled in favour of the salaried and executive retirees, finding GM did not have the contractual authority to reduce their health care and life insurance benefits after they retired.

The settlement, which must still be approved by a judge, does not cover GM’s hourly retirees, who reached a separate deal with the company through their union in 2011.

The two sides finalized the negotiated settlement on Wednesday. The proposed settlement goes before a judge on Aug. 7 for approval.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.7536-0.0032
Gold1119.50-5.10
Oil44.46-0.76
Lumber237.20-9.70
Natural Gas2.664-0.051

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



27314

FEATURED Property
2384066341 Quilchena Drive
2 bedrooms 2 baths
$516,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_





27511


Member of BC Press Council


26780