Wednesday, September 17th18.7°C
23373
22285

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

23171


Recent Trending




Today's Market
S&P TSX15478.62-31.92
S&P CDNX973.76-1.94
DJIA17161.0229.05
Nasdaq4560.51+7.751
S&P 5002002.22+3.24
CDN Dollar0.9093-0.0022
Gold1229.80-6.8999
Oil94.18-0.70
Lumber349.00+1.00
Natural Gas4.082+0.019

 
Okanagan Companies
Pacific Safety0.165-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.03
Cantex0.06-0.01
Anavex Life Sciences0.2361-0.0139
Metalex Ventures0.060.00
Russel Metals36.41+0.46
Copper Mountain Mining2.74+0.05
Colorado Resources0.17+0.01
ReliaBrand Inc0.027+0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



22364

FEATURED Property
19693922345 Bridgeview Road
4 bedrooms 4 baths
$1,250,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_








Member of BC Press Council


22814