Air Canada’s proposal to put new hires into a defined contribution (DC) pension plan with an inferior, more precarious benefit has been rejected. The Canadian Auto Workers (CAW) union has won the right to maintain the defined benefit (DB) pension plan for new hires, along with a DC portion to their pension.
The airlines will place all new appointments in a hybrid pension scheme, consisting of both DB and DC components. Current CAW members at Air Canada will remain in the current DB plan.
Click here for the release from Canadian Auto Workers.