Canada’s Conservatives will change legislation to ensure that pensioners have priority over corporate elites in bankruptcy or restructuring.
Canadian workers should be able to rely on their pensions. But all too often we have seen workers forced to take big cuts to their pension when the company they worked for goes bankrupt.
This needs to change. It’s time for the government to stand up for workers and secure pensions.
We will also better secure workers’ pensions by:
1. Preventing executives from paying themselves bonuses while managing a company going through restructuring if the pension plan is not fully funded.
2. No longer forcing underfunded pension plans to be converted to annuities, which locks in losses, and means that workers receive less money.
3. Requiring companies to be more transparent by clearly reporting the funding status of their pension plans.
Examples: In 2018, Sears Canada employees had their pension cheques cut by 30% and in 2009, Nortel’s bankruptcy also saw a 30% cut in pensions for its Ontario pensioners.
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