The new contract ratified yesterday between General Motors of Canada Co. and Unifor includes a special one-time, lump-sum payment of $1,500 for all employees who retired before 1987.
The agreement also includes a number of changes to group benefits and wages, including:
- Group life insurance benefit reductions will now begin at retirement, effective Jan. 1, 2017;
- An open enrolment period for optional life insurance will be held during the term of the agreement to allow members to enroll or increase coverage by one schedule for optional group life and two schedules for a dependent;
- Dental implants are now an insured service;
- Coverage for physiotherapy in the amount of $200 per year and a maximum of $50 per visit.
- The conversion of 700 temporary positions to permanent full-time job status, including benefits, a pension, a signing bonus, a $1,000 lump-sum increase and wage protection;
- General wage increases totaling four per cent over the life of the contract and a lump sum totaling $12,000 over four years; and
- An improved new hire program.
Read: DC pension deal with GM to ‘certainly influence’ talks with Ford, Chrysler: lawyer
The Globe and Mail has reported the agreement also includes a pledge from General Motors to eliminate the $2.6-billion deficit in the pension plans for its unionized workers and retirees.”The funding of our defined benefit plans will be on a solvency basis pursuant to Ontario law and requirements,” said a spokesperson from General Motors in an email to Benefits Canada.
The ratified deal with General Motors sets the pattern for contract talks that begin with Fiat Chrysler today. Once a deal with Fiat Chrysler is ratified, negotiations will begin with Ford Motors Company.