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Machinists Union negotiates rich landmark settlement for workers
facing plant closure at Visteon |
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| FOR IMMEDIATE RELEASE TORONTO – The International Association of Machinists and Aerospace Workers (IAMAW) has negotiated what is believed to be the richest plant closure package in the history of Ontario, providing pension and benefit improvements totalling more than $128-million for the 1084 employees at Visteon Canada Inc, an auto parts manufacturer scheduled to close here over the next 18 months. “This agreement goes a long way to relieve the terrible anxiety which has plagued our members since Visteon tossed a bombshell into their world back in January. I’m tremendously proud of our local union people who have worked literally around the clock to secure this agreement to ease the nightmare of economic insecurity amongst our members,” said Dave Ritchie, IAMAW Canadian Vice-President. The unprecedented settlement, which has been ratified, means any employee aged 55 will be eligible for unreduced pension benefits with no minimum years of service requirement. Those with 25 years of service can retire with a full pension, plus $430 per month bridging for up to 60 months, and with full health care benefits – including prescription drugs, dental and vision care. Employees aged 55 with less than 25 years of service are eligible for a pension pro-rated to their employment service. For example, a 55 year old employee with 21 years of service would get 21/25ths of the full benefit. Further, there is a bridging benefit for a maximum of 60 months in the amount of $430, up from $405 per month, again pro-rated for those with less than 25 years service. In addition, employees with age and service totalling the magic number “55" will be treated as if they had continued to be employed until they were eligible for unreduced early retirement. This is commonly called the “grow in” feature of Ontario pension legislation. The average age at the plant is 50. The average years of service is 20 years. Those employees who do not qualify for the pension “grow in” benefit will be entitled to severance pay equal to three weeks pay for each year of service. Employees eligible for “grow in”provisions, but not immediately eligible for an unreduced pension will get two weeks pay for each year of service. Employees eligible for a full pension will get one week of pay for each year of service. If the plant is sold, Visteon will ensure that employees who transfer to the successor company will retain severance eligibility or be paid a $10,000 bonus. There are a host of other benefits – including establishment of an Employee Assistance Program; a $250,000 contribution to a Labour - Management Adjustment Committee; $2,000 for each employee for tuition and training and a $400 cash payment at the time of ratification. -30-
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