Quote:
Originally Posted by Resolute 14
Of course Canada Post is trying to advantage itself. Because, as I have noted numerous times now, Canada Post has numerous examples of defined benefit pension plans crushing companies and communities. It is to Canada Post's advantage to not go down that same path. That is why it is switching, and why it is trying to force CUPW to do the same.
And to respond to one of your paragraphs that I clipped - you are right that the switch likely will not spare the taxpayers from having to bail out a deficit on the existing plan. What the change will do, however, is protect taxpayers from having to bail out future plan members.
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Yes it will protect taxpayers from any potential liability on the new plan, I mentioned that in my post. The problem has to do with who the new plan will not protect from the deficit and how.
Hopefully this explains what I mean:
Introducing the new plan will, as I've mentioned, create a two tier system which has the potential to negatively impact the old pension plan members by not only allowing it to potentially bankrupt itself/be at the mercy of a bail out decision, but also by having its defined benefit be altered in future negotiations without its members approval as they lose the voting majority. So the union takes a risk, the tax payers take a risk although how much is undetermined, and Canada post assumes zero risk.
The new plan will also not put any measures in place to address or stabilize the old plan, the deficit could grow, shrink if it grows the funds could go bankrupt, so again the union takes a risk, the tax payers take a risk, and Canada post assumes zero risk.
Do you see the who is coming out ahead no matter what scenario plays itself out? Canada post will be washing their hands of the mess they played an equal part in creating and assume no responsibility for trying to fix it long term and protect both its employees and the tax payers from having to handle the fallout. That is what I feel they are after, they don't care if tax payers or there members suffer, they are just looking to make sure they don't suffer.