Monday, April 27th13.2°C
24963

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 TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8264-0.0006
Gold1199.90-3.40
Oil56.30-0.69
Lumber255.00-1.20
Natural Gas2.471-0.019

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



24947

FEATURED Property
22778551308 3168 Via Centrale
2 bedrooms 2 baths
$329,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



25482

25482


Member of BC Press Council