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Air Canada union agrees to hybrid pensions for new hires

Posted by on Sep 24, 2011 in Retirement | 0 comments

brent jang

Globe and Mail Update
Published Thursday, Sep. 22, 2011 7:27PM EDT
Last updated Thursday, Sep. 22, 2011 11:39PM EDT

The union representing Air Canada flight attendants has agreed to a pension system for new hires that will place them on a hybrid plan of defined benefit and less-costly defined contribution.

The Canadian Union of Public Employees, which represents 6,800 flight attendants, agreed to pensions for new hires that will be modelled after the Canadian Auto Workers union’s recent case handled by arbitrator Kevin Burkett.

n June, agents represented by the CAW ratified a four-year collective agreement, but the contentious pension issue was referred to the arbitrator. Defined benefit pensions provide a guaranteed payout level on retirement, but defined contribution plans don’t.A copy of CUPE’s tentative agreement, obtained by The Globe and Mail, notes: “In the event that there is disagreement as to the application” or interpretation of the CAW’s hybrid pension model, “the issue will be referred to arbitrator Burkett.”

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