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Northstar Aerospace blames union for pension shortfall as members face 24% cut

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Scott McIlmoyle:

Thank you for the attention paid to the situation at Northstar Aerospace.
It is disturbing that the company is blaming Unifor, effectively blaming the workers themselves, for the looming cut to pensions. This is a ridiculous lie. The fact is we are in this situation due to the company.
The company operates with a target benefit pension plan in place. The company chose to move operations, and made the decision to close the Milton plant. The company is now choosing not to live up to its moral obligation to the workers who have served at the Milton plant for decades by choosing not to fund the pension deficit.
The company did all this despite healthy profits and the cash available to do the right thing for workers and retirees. In fact, as late as last December, the company told the union and the membership the order book was full and the future of the plant looked positive. Less than four weeks later, it announced the closure.
As a going concern, the pension is fully funded. There is only a deficit because the company chose to move operations and close the plant.
There is nothing preventing the company from funding the pension deficit. It is simply choosing not to do so.
Sincerely,
Scott McIlmoyle, Unifor Local 112 President

Wednesday, August 16 at 6:31 pm | Reply

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