Saturday, Aug 08, 2009
The Globe and Mail
Labour sounds alarm over pension ruling
On Friday August 7, 2009, the Supreme Court of Canada held that an employer, Kerry Canada Inc., could use the surplus in a defined benefit plan covering some employees to fund its contributions and expenses in a defined contribution plan it created for new employees.
The Globe and Mail interviewed "top labour lawyer" Steven Barrett, who represented the Canadian Labour Congress in the case. The CLC intervened in support of the appellants - members of the defined benefit plan. Steven said that the Court's decision bolstered a call recently made by Canada's premiers for a national summit on pensions. He also stated:
If anything, I think it reinforces the call for government and legislative action to enhance the pension plans of workers who are facing retirement with either pension plans that have been seriously eroded over the last year or so, or workers who simply have no, or inadequate, pension coverage.
[The court] in fact says it is up to legislatures and governments to develop pension plans that protect workers.
The Court's decision can be read here.
