Saturday, December 20th0.7°C
24124
23979

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 TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
24130


24588

FEATURED Property
17556543629 Luxmoore Road
6 bedrooms 5 baths
$1,550,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_





24437


Member of BC Press Council


23860