Latest GM Canada, Unifor deal includes DB pension changes, benefits enhancements
The union representing General Motors of Canada Co. employees in Ontario has ratified a new agreement for workers at a plant in Ingersoll that removes changes to a legacy defined benefit plan as part of ongoing pension discussions.
The deal, based on the recent three-year agreement with GM for workers in Oshawa, St. Catharines and Woodstock, brings production of electric commercial delivery vans to the Ingersoll assembly plant and restores the legacy DB plan for its plant workers by removing a member contribution requirement and a 30-year cap on credited service introduced in 2009, says Corey Vermey, director of the pensions and benefits department at Unifor.
Read: GM Canada, Unifor agreement covers DB pension changes
Similar to the previous agreement, the union will continue to push for the transition of defined contribution plan members into the Colleges of Applied Arts and Technology pension plan’s DBplus in the future.
In addition, he says employees hired since 2016, who aren’t entitled to health benefits in retirement, will join an employee life and health trust, while new employees will also have immediate access to several benefits such as a legal services plan. “Our objective was to pattern after the master settlement with GM from 2020, so that’s largely what took place in terms of pension and benefits.”
The deal includes a five-per cent increase to hourly rates, a $7,250 productivity and quality bonus, a total of $4,000 in inflation protection bonuses, shift premiums and restoration of the 20 per cent wage differential for skilled trades. It will also establish an anti-racism action plan and a racial justice advocate in the workplace.
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