With labour negotiations at Canada Post Corp. centred on a proposal to close its defined benefit pension plan in favour of a defined contribution component for new employees, which side do you agree with?
The postal service has, of course, withdrawn its earlier threat to lock out its workers on Monday, but the pension issue remains a key sticking point as the company attempts to reach an agreement with the Canadian Union of Postal Workers.
Canada Post spokesman Jon Hamilton has cited the low interest rate environment, a large solvency deficit and increased life expectancy as factors putting pressure on the organization’s defined benefit pension plan.
Read: Canada Post, union clash over pensions as work disruption looms
The union has drawn a line in the sand on the issue. Mike Palecek, national president of the union, has said “there’s no way we’re accepting” the pension changes and has suggested Canada Post is making “fantastic profits” off the work of the union’s members.
With the private sector having long ago moved away from defined benefit pension plans, what do you think about the dispute at Canada Post? Have your say in this week’s online poll. Is it time for the public sector to adapt to the changing environment or is the union right to fight for pension security?
Read: Canada Post labour dispute: A look at the company’s existing DC plan for some workers
As for last week’s poll, a large majority of respondents believe coverage levels for vision care in employee benefits plans are too low. The majority (75 per cent) of respondents agreed that plans have failed to keep up with costs and the complexity of vision care, while the remaining 25 per cent said it’s good to see plans controlling their costs in at least one area of employee benefits.
