CAW Pension issue

[DrBoeing]

An arbitrator has ruled in the case of new Air Canada sales and service agents who are represented by the Canadian Auto Workers union.

In June, agents ratified a four-year collective agreement, but a contentious pension issue was referred to arbitrator Kevin Burkett. On Friday night, Air Canada announced that new CAW hires will join Air Canada’s “hybrid pension regime consisting of part defined contribution and part defined benefit plan.”

Defined benefit pensions provide a guaranteed payout level on retirement, but defined contribution plans don’t.

The ruling will affect CAW members hired after the June 27 ratification date of the tentative agreement.

[Marinth]

What an easy job that arbitrator had. "We want defined benefits". "We want to give them defined contribution". "After much deliberation I have decided you will both get what you want. Defined contribenifits!"

How is this supposed to work?

[HuD 91gt]

This is pretty interesting.

I don't know anything about the Pilot pension/contract under negotiation. But could this same thing happen to them, or is it completely up to the pilot group to vote it in or out? Would it be back dated as well?

[Deerinheadlights]

My guess is this is the way all CA are going to end up.Some sort of hybrid with minimum payouts less than DB's would normally get but better than DC's in a bad market.

[DrBoeing]

For some twisted reason the CAW seems to think they won.

http://www.caw.ca/en/10611.htm

[yyz monkey]

For some twisted reason the CAW seems to think they won.

http://www.caw.ca/en/10611.htm

Would you cheer a loss to a membership that pays dues? It's the only way they can spin this.

[DrBoeing]

For some twisted reason the CAW seems to think they won.

http://www.caw.ca/en/10611.htm

Would you cheer a loss to a membership that pays dues? It's the only way they can spin this.

So to assume that the entire membership is stupid is a better solution?